Forty-two percent of those surveyed report they are setting aside some money for retirement each month, but the median amount is under $75. More than half (52%) say they have not given any thought to how they will finance their retirement because they are focused more on meeting their current financial obligations.
Among those who are working full-time, 57% indicated that their employer does provide them with some retirement benefits. In addition, 44% say they are investing money for retirement outside of an employer-provided vehicle.
The survey also found 50% of Millennials do not believe Social Security will exist when they reach their retirement years; 28% think Social Security will exist, but that the benefits will be much smaller than today. Only 5% think Social Security will exist at the same benefit level as today, and 18% are not sure what will happen with Social Security by the time they retire.
The study included 642 young adults, ages 18-29 from across the U.S. It was conducted by St. Norbert College Strategic Research Institute in August.
According to the report, the iOMe Challenge Organization was formed by a group of concerned citizens, business leaders, and educators to engage and challenge young people to begin thinking about their financial future. Sponsors include Ally, PAi, Sage, American Society of Pension Professionals and Actuaries, the National Association of Government Defined Contribution Administrators, and St. Norbert College.An executive summary of other results of the “Measure of Millennials” is available here.