two-thirds, 64%, of Millennials, those between the ages of 25 and 36, say they
are very or extremely confident making investment decisions on their own,
Schwab Retirement Plan Services found in a nationwide, online survey of 500 workers.
This is far higher than the 47% of Gen Xers and 39% of Baby Boomers who feel
the same way.
However, 85% of Millennials say that were they to work with a financial adviser, they would be very or extremely confident about making investment decisions. Among Gen Xers working with an adviser, 73% express such confidence, and among Boomers, 72%.
And while Millennials have less saved in a 401(k) than older generations, 64% think they would benefit from financial advice. Eighty-four would like personalized advice for their 401(k) plan, and 93% say that if they were offered a financial wellness program at work, they would take advantage of it.
However, 35% of Millennials say financial stress is affecting their job performance, compared to only 18% of Gen Xers and 11% of Boomers. Although student loans are certainly a source of Millennials’ financial stress, cited by 24%, they are more likely to put any extra money left over at the end of the month into their 401(k) (34% of Millennials, compared to 20% of Gen Xers and 8% of Boomers).
Millennials are also more attuned to the impact of investment fees, with 51% saying they pay attention to fees when selecting an investment for their 401(k) plan. By comparison, only 40% of Gen Xers and 38% of Boomers say the same.
these findings indicate that despite the financial challenges they face,
Millennials are taking positive steps when it comes to saving and investing—especially
with their 401(k)s. Seventy-eight percent say their 401(k) will be their
largest—or their only—source of income in retirement.
“It’s heartening to see that saving for retirement has become a priority for so many workers, especially the youngest generation of workers, for whom retirement can seem like a lifetime away,” says Steve Anderson, president of Schwab Retirement Plan Services.
Koski Research conducted the survey for Schwab in June.