Nearly four in 10 young adults, those between the ages of 22 and 35, think saving for retirement can wait, according to a survey by Navient. Instead, they are prioritizing short-term goals, such as home ownership, saving for vacation, paying down debt or building an emergency fund.
Only 31% of young adults are saving for retirement. Among this group, they saved an average of $32,818 last year, down from $37,638 in 2016.
Among young adults with a bachelor’s degree, 45% are saving for retirement. Among those with advanced degrees, the figure is 38%. Thirty-one percent of those with associate degrees are saving for retirement, and 25% of those without a degree are doing so.
Bachelor degree holders who have paid off their student debt have saved an average of $47,297, compared to $25,301 for those who have not paid off this debt.
Thirty-six percent of young adults who are both paying off debt and saving for retirement but who have made paying off debt their No. 1 priority feel “very good” about their financial health, whereas this is only true for 23% of those who have made saving for retirement their No. 1 priority.
Among those young adults who have access to a retirement plan with a company match, their average savings is $32,851. For those who don’t have such access, their average savings is $18,879.