NASHVILLE, Tenn. – A new survey by Ramsey Solutions, a financial education, company shows that 58 percent of Millennials are actively saving for retirement and 38 percent already know how much money they’ll need for retirement.
Although nearly 60 percent have less than $10,000 saved for retirement, this is roughly the same amount as baby boomers, despite baby boomers having had more time to save. And of the 58 percent who are actively saving for retirement, they began saving at an average age of 23.
“It’s encouraging to see that Millennials are setting themselves up to have a much more positive retirement outlook,” says Chris Hogan, financial author and spokesperson for Ramsey Solutions. “But while Millennials have a great chance of having a secure retirement, they still need to focus on eliminating debt and maintaining a balanced lifestyle so they are able to increase the amount they are saving for retirement.”
Additional key survey findings include:
- Seven in ten Millennials wish they were already investing more. And eight in ten say they plan to save more in the future. On top of that, four in ten Millennials know how old they’ll be when they retire, about the same as Generation X.
- 50 percent of Millennials say cost-of-living is the top reason they do not save more for retirement. This is followed by kids activities/needs (27 percent), student loans (23 percent), credit card debt (22 percent) and primary mortgage (21 percent).
- Only one in five Millennials are “very confident” Social Security will be available when they retire. While more than half of baby boomers expect Social Security to make up all or most of their retirement income, only 28 percent of Millennials hold the same belief — 58 percent list 401(k) as their primary source of income in retirement and 54 percent list savings/cash. Additional findings can be found at www.daveramsey.com/research/millennials.