Millennials are realistic. Nearly three-quarters (73%) expect to work past 65, acknowledging that in old age, safety nets will not be there for them and Social Security will not take care of their needs.
“Millennials hold themselves to a high standard financially, and while they’re realistic about some of the challenges they face, they’re definitely not cynics,” says Rebekah Barsch, executive officer and vice president, planning and sales, Northwestern Mutual.
While less than half (38%) of Americans age 35 and older have set financial goals, Millennials prove to be more pragmatic. A study by Nortwestern Mutual reveals 53% of Millennials have set financial goals, and another 65% classify themselves as more inclined to save than spend. Barsch classifies the generation as “savers,” adding they recognize the required discipline.
Research shows one in three Millennials point to a lack of planning as the greatest obstacle to achieving financial security in retirement. They are taking responsibility to combat this obstacle and plan for the future, with nearly half reporting they have spoken to their partner, friends, family or an adviser about retirement.
“Members of Generation Y have some exceptionally good instincts when it comes to planning. They’re inclined to set goals and are pretty hard on themselves about how they’re doing against them,” explains Barsch.
This generation is also enthusiastic about their future, as nearly half (46%) who expect to work past the traditional retirement age say it would be by choice. They have “positive expectations about what’s in store for them as they get older,” adds Barsch. Research suggests Millennials are excited by their budding careers and do not envision a future where they will choose leisure over work.
The “2015 Northwestern Mutual Planning & Progress Study” includes responses from 5,474 Americans ages 18 or older, including 1,081 Millennials ages 18 to 34, who participated in an online survey between January 12 and January 30, 2015.