Millennials are better prepared for retirement than their parents, J.D. Power learned in a survey. Of all of the demographic groups, Millennials are the most likely to have set specific retirement goals and to have the highest amount of savings, relative to age.
“The fact that many in the youngest generation of plan participants are actively preparing for retirement now sends a clear message to providers,” says Mike Foy, senior director of the wealth management practice at J.D. Power. “They need to be focused on upping their game on their digital and mobile offerings to meet the expectations of this digitally enhanced customer segment, not only to help differentiate themselves with plan sponsors who make provider selection decisions on behalf of the employees, but to position themselves to benefit from rollover events when employees eventually leave their jobs.”
The survey also found that 51% of Millennials have set specific retirement goals, compared to just 44% among Gen X and Boomer participants. Of the 51% of Millennials who have set goals, 83% say they are on track to meet them.
Sixty-one percent of Millennials have at least $25,000 in retirement savings, and 27% have more than $100,000, with an average of 30 to 35 years before retirement. By contrast, 75% of Boomers have more than $100,000 in savings, with an average of only three years before retirement.
Only 20% of plan participants of all ages plan to roll their assets over to their current provider. However, when they are digitally engaged, this rises to 48%.