While 80% of Millennials are confident that they will achieve their financial goals, 34% of them do not think the Social Security safety net will still be in existence by the time they retire, according to the 2016 Northwestern Mutual Planning & Progress Study.
Only 21% of Millennials have a financial adviser, yet 72% of those who do not are interested in receiving professional guidance, compared to just 57% of the general population.
Among the different age groups, Millennials (ages 18 to 34) are least likely to anticipate more financial crises in the future (66% versus 76% for Gen X, those ages 35 to 49, and 80% of those 50 and older).
Additionally, 40% of Millennials think the economy will improve this year, compared to 33% of the general population and 25% of those 50 and older.
Fifty-eight percent of Millennials consider themselves highly disciplined or disciplined when it comes to planning out their financial futures. They are also more likely to recognize that the lack of planning can impede one’s retirement than other age groups (40% versus 28% of both Gen X and those 50 and older).
While they are optimistic about the long-term, they are worried about the present; one in 20 Millennials worry about money on an hourly basis. Their top-cited sources of anxiety include day-to-day expenses (50%), unexpected expenses (45%) and student loan debt (34%).
Sixty percent of Millennials who are suffering from financial anxiety say it is negatively impacting their careers, compared to 41% of the general population. Asked how financial security could change their lives, 39% of Millennials said it would permit them to pursue their dreams or their passions, compared to 29% of the general population.
Among those Millennials experiencing financial anxiety, 80% said that eliminating financial stress would enable them to improve their careers, compared to 66% of the general population.
“It is encouraging to see that Millennials are striking a balance between being realistic about the implications of extended longevity and remaining positive about building a solid financial future,” says Rebekah Barsch, vice president of planning for Northwestern Mutual.
Northwestern Mutual’s full study can be downloaded here.