While a lot of negative things can be said about the millennial generation, there are a couple good spots about this twenty-something group of people walking around. One good thing millennials have done is that they have started saving for retirement, at least that is what a new survey said. According to the Transamerica Center for Retirement Studies, about 67 percent of millennials have began stashing money away for retirement.
The millennial generation has had it very difficult the past few years, between trying to start their careers and having thousands of dollars in student debt. Not to mention, the economy has made it hard for them to put money down on a down payment for their first home, and then on top of that trying to find someone to share that home with. In terms of something positive the millennial generation is doing though, they are still finding ways to save money for the future, even as the situation in the present often looks bleak for this group of twenty-somethings.
The youngest of the workers who took part in this survey had a median of $16,000 saved up for retirement, which is compared to $45,000 for people in their 30s. The median age the millennials are starting to save for retirement is 22-years-old. This is really good considering that the workers in their 50s say they never started saving for retirement until about age 31, according to the survey results. The survey also showed that 28 percent of all twenty-somethings surveyed are putting away more than 10 percent of their income into a 401(k) or similar type of plan.
The bad news though about the millennial generation is that they said they know nothing about investing or allocating assets, which is a huge part of finances. 27 percent said that they didn’t even know how their current savings was being invested, which means that it’s possible this group could be taken advantage of by people more easily in terms of financial allocations. 24 percent of those surveyed did say they were putting money into a low-risk, low-return investment plan, which is quite conservative for this often liberal and progressive group of people.
The survey also showed that 81 percent of millennial respondents said that they are concerned Social Security won’t be there to help them when they get old enough to retire. This could be why so many millennials are looking towards saving money already, even at age 22 or 23, because the worry about whether or not the government Social Security program will still be viable in another 40 years. The survey looked at 4,550 workers throughout the course of a month in early 2015, so these results are fairly indicative of the current thought process of the twenty-somethings in this country.