Saving for retirement ranks as a top long-term financial goal among Millennial educators, yet tackling credit card debt and student loans is a major barrier, according to a new study from Security Benefit.
More than half (58%) of Millennial teachers report having credit card debt along with 64% of non-teacher (administrators, specialists, etc.) Millennials. In addition, 56% of Millennial teachers report having student loan debt compared to only 39% of non-teachers. Both groups noted that these loans are a major barrier to reaching their financial goals.
Despite these obstacles, Millennial educators are paying attention to retirement savings. While 66% of Millennial teachers have access to a pension, only 33% expect to fund retirement strictly on a pension. More than three-fourths (76%) of Millennials have access to employer retirement savings plans, and 80% contribute to them.
Millennial educators said they need help with retirement planning, especially when it comes to determining an appropriate asset allocation or the best investment vehicle. The survey found they tend to first research budgeting and investing strategies online. However, 73% said they are likely to work with a financial adviser in the future, and 41% currently work with one (versus only 17% of non-teachers that work with a financial professional).
For Millennial educators, developing a personal relationship with a financial adviser is especially important; 80% would prefer to work with an advisor in person. While 74% are at least somewhat interested in using an app for help with retirement savings, still 77% would place most of their trust for financial advice with an adviser.The study was conducted in partnership with researcher Greenwald & Associates and is based on qualitative and quantitative research from U.S.-based educational professionals ages 21 to 37.