Because people are living longer, healthier lives, the Wells Fargo Investment Institute has suggested different ways that Millennials, Generation X and Baby Boomers can successfully save for retirement.
Among all age groups, 76% think people in their generation will have a harder time achieving financial security in retirement than their parents, the Transamerica Center for Retirement Studies found.
While a survey finds the majority of Millennials are investors, the top three reasons some Millennials do not invest are they do not have enough money to do so, they say they do not know how to properly invest, and they do not know the first thing about investing.
They may be grappling with debt for decades to come, according to Nationwide Advisory Solutions.
Nearly half owned their funds only through their employer-sponsored retirement plans, according to the ICI.
However, only 24% of women say they are comfortable with their knowledge on investing, Fidelity Investments found.
Among those who know how their 401(k) assets are allocated, they had 51% of their assets in equities, Legg Mason learned in a survey.
Twenty-nine percent say financial planning makes them feel “excited and inspired,” a survey by Northwestern Mutual found.
They are also not interested in robo advisers, preferring to work with financial professionals in person.
A Charles Schwab SDBA report says the group allocated to ETFs and saved cash at a higher rate than other generations.
Nearly sixty percent have taken an early withdrawal from their retirement account.
Asked what they look for in an adviser, Millennials say experience, followed by someone with similar demographic qualities as themselves.
The average Millennial spends over $30 on coffee per month, but will also, on average, save $480 for retirement in the same time frame.
This is despite having lived through two bear markets.
They also believe having an adviser they can trust is important for their financial confidence.
However, there are things retirement plan advisers and sponsors can do to encourage them to take on more risk.
They are on track to replace 75% of their income, compared to 64% for Americans overall.
More than one-third of Gen Xers and Millennials have no retirement savings, and although many expect to rely on Social Security for a major portion of retirement income, they have no intention of maximizing their benefits, a survey finds.