New Study: Millennials jumpstarting their retirement savings. But is it enough?
By age 25, most millennials are already saving for their retirement. But while they may be saving early, by their own admission they may not be saving enough, according to a new study by The Principal Financial Group®.
- Saving earlier for retirement. Sixty-three percent of millennials report they started saving for retirement at or before age 25.
- Saving at the workplace. Eighty-three percent of millennials take full advantage of matching contributions when offered through their employer-sponsored retirement plan.
- Admit to not saving enough. Three out of four millennials say they should be saving at least 10 percent of their salary for retirement, but the reality is that less than a third actually are.
- Mostly independent. Age 25 is that magical number when 84% of millennials feel they should be financially independent. However, many report their parents are still paying for some of their bills – such as cell phone or health/automotive insurance.
Candid Conversations Captured on Video
In addition to this new study, The Principal recently met with millennials across the country to gain insights into how they felt about planning and preparing for retirement, and what specific steps they were taking to get there. These conversations were captured in a series of videos, the first of which is available to the right.
The Principal Financial Group Millennial Research Study was conducted online within the United States by the Principal Financial Group between October 2014 and December 2014. Respondents to the survey were 867 American workers ages 23-35.