While the high percentage of Millennials who report having a financial plan is encouraging, the 68% who say they are not investing enough for retirement is highly problematic, Nationwide says. The survey reports 36% of Millennial investors only guess at how much they need to fund their retirement, and nearly one in four do not know if they even have a 401(k) plan.
“While it’s great that Millennial investors now have a financial plan, they’re still coming up short when it comes to savings,” says Mike Spangler, president of Nationwide’s mutual funds business. “To help close the gap, we recommend that Millennials work closely with a professional financial adviser.”
The survey finds 56% of Millennial investors think they would be more financially successful with professional financial advice; however, only 39% use a financial adviser. A majority (58%) conduct their own financial research and make their own investment decisions, but only half are confident they know how much to save. Of those without a financial plan, 28% feel that creating a financial plan is overwhelming and 40% say they haven’t gotten around to it yet.
Millennials are more likely to consult family (50%) and websites (49%) than a financial adviser for meeting their financial planning needs. In contrast, retirees are more likely to turn to a financial adviser (62%), traditional media (37%), and to follow their gut feeling (36%).
“The good news is that Millennials acknowledge the value of a professional and want to save and invest more,” Spangler adds. “The financial industry has a real opportunity to help Millennials understand how to balance the demands of paying for today with investing for the future.”
Additional data from the survey is presented here.