Guess who's saving the most: Millennials

Houses and retirement? Not so much – personal freedom tops concerns

May 19, 2017 @ 2:46 pm

By InvestmentNews

+ Zoom

One-third of millennials are saving 20% or more of their salaries and they are putting financial freedom ahead of retirement savings as their goal, according to a new survey.

Sixty-three percent of millennials (18-34 years old) are looking to achieve the amount of savings or income necessary to live their desired lifestyle, as compared with 55% of Gen Xers and baby boomers who are saving to leave the workforce, the latest Merrill Edge Report found.

When asked about their top priorities in life, millennials were significantly more likely than their older counterparts to focus on personal milestones of working at their dream job (42% vs. 23%) and traveling (37% vs. 21%), while placing a lower priority on being married (43% vs. 51%) and being a parent (36% vs. 59%) than their older and younger age cohorts. Consistent with that, they would rather travel, eat out and exercise than save for the future.

"Young adults tell us they are willing to do whatever it takes to achieve freedom and flexibility, even if it means working for the rest of their lives. To ensure success, it's increasingly important these younger generations take a hands-on, goals-based approach to their long-term finances and prioritize saving in the short term," said Aron Levine, head of Merrill Edge, in a release.

But for all their spending, millennials also are big savers. As a group, they save 19% of their salaries, as compared with a savings rate of 14% for Gen Xers and boomers, and 12% for seniors. Still, only 15% of millennials think they are doing a 'very good' job at saving.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Consuelo Mack WealthTrack

T. Rowe Price's Brian Rogers: Are there companies you can buy and hold forever?

Brian Rogers, non-executive chairman at T. Rowe Price, says there are just several companies that he stayed invested in throughout his 30-year term at the helm of the equity income fund.

Latest news & opinion

Sean Spicer resigns as press secretary after Anthony Scaramucci is appointed communications director

Scaramucci is known as an ardent foe of the DOL fiduciary rule, having said during the campaign that Trump would repeal it .

Redoing the math on a 4% retirement withdrawal rate

Given the current interest-rate environment and other factors, advisers disagree about whether the number is too conservative or not conservative enough.

House panel passes bill to replace DOL fiduciary rule with one requiring disclosure of conflicts

Measure likely to continue in partisan advance in House, but could stall in Senate.

Morgan Stanley says recruiting and attrition have slowed down

If wirehouses can successfully reduce their reliance on signing bonuses to recruit brokers, they could increase profits.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print