Millennials are very optimistic about their financial futures, TD Ameritrade learned in a survey.
On average, they expect to retire at age 56, and 53% expect to become millionaires. Twenty-five percent do not expect to get married, and 25% do not plan on buying a home. Additionally, 30% do not plan to have children. Twenty percent do not expect they will be able to pay off their student loans; collectively, Millennials have $1 trillion in student loan, credit card and other debt, TD Ameritrade says.
Seventeen percent have not yet achieved financial independence from their parents. In most cases, moving out of the home triggers being financially cut off. On average, Millennials expect to begin saving for retirement at age 36, and 28% do not plan to ever retire.
Thirty-eight percent of Millennials are saving for retirement. Seventy percent characterize themselves as savers, up from 62% in 2016. Ninety-four percent say they are saving towards a specific goal, with the top two being a vacation (43%) and an emergency fund (39%). Twenty-five percent have started saving for their children’s or grandchildren’ college education.
“One of the greatest investments young people can make in themselves is to start putting money away in their 20s,” says JJ Kinahan, chief strategist at TD Ameritrade. “Because of the power of compounding, even with ups and downs along the way, those who start early can end up with more in the end.”