When asked if they see themselves retiring at some point, 47% of Millennials in a new survey by IRALOGIX said “they will retire as soon as they can afford it.”
That same percentage expressed moderate confidence that they will accumulate sufficient savings to someday retire while 29% have no confidence in their ability to do so. And 22% said will keep working, either because they “enjoy it or they don’t have sufficient retirement savings.”
“Millennials are revolutionizing the traditional concept of retirement along with the very definition of the word itself, offering a fresh perspective unlike any other generation in the U.S.”
Lowell M. Smith, Jr.
The new survey reveals how Millennials are reshaping the retirement landscape, defining it by financial independence rather than an age-based benchmark. The study, which marks a new understanding of retirement planning’s shifting paradigms, surveyed Millennials nationwide, shedding light on the evolving attitudes and behaviors surrounding their retirement readiness, retirement confidence, and consumer debt.
“Millennials are revolutionizing the traditional concept of retirement along with the very definition of the word itself, offering a fresh perspective unlike any other generation in the U.S.,” said Lowell M. Smith, Jr., co-founder of Pittsburgh-based white-label IRA recordkeeping and technology solutions IRALOGIX. “The survey underscores a fundamental shift from what we previously understood: Millennials don’t perceive retirement solely as a departure from the workforce. Instead, they define it as a stage of life characterized by enhanced career flexibility and an opportunity to pursue passion projects and hobbies, fostering personal fulfillment and making a meaningful social impact.”
To wit, just over half (51%) say retirement is defined not by age 65 but by financial independence where they can indulge their lifestyles without relying on traditional employment. About one quarter (24%) noted full retirement at age 65 is a goal they’re highly focused on working toward; and 16% responded that retirement is not necessarily an exit from the workforce, but a time of greater flexibility in their lives.
Who’s responsible?
The majority (55%) of respondents hold themselves accountable for ensuring they have sufficient retirement savings, while 25% say their employer is responsible, and 20% believe the government should provide their retirement savings.
Of those who answered “employer” to the previous question, 37% said to make a comfortable retirement viable, employers should offer a robust retirement benefits package like a 401(k) or similar plan along with a competitive employee match; 24% want a traditional Defined Benefit plan with investments selected by investment professionals, where the employer assumes all the risk and is required to pay the employee a fixed monthly sum when they retire.
When it comes to balancing short-term financial goals like vacations, buying a home, and paying down student loans/other debt with saving for retirement, 62% indicated they try to “strike an even balance” between the two, and 29% are entirely focused on “living in the now” by focusing only on their short-term goals.
Other key takeaways
- When asked if they use technology like robo-advisors, investment platforms, or AI to aid in their retirement planning, 60% of Millennials said “no,” 28% answered “yes,” and 12% are “thinking about it.”
- 61% make regular monthly contributions to an employer-sponsored retirement plan like a 401(k), 403(b), SIMPLE IRA, or SEP IRA.
- When leaving an employer where they had a retirement plan in place, 25% rolled it over into their new employer’s plan; 27% rolled it into an IRA; 31% left it “untouched” with their former employer; and 16% suffered leakage by withdrawing the balance and spending it.
- Despite her fame and fortune, Taylor Swift doesn’t appear to hold much sway over Millennials. When asked if her endorsement of a particular presidential candidate would have any influence on their vote, 71% said “no.” Just 29% answered “yes,” or “I haven’t given it any thought but I will.”
SEE ALSO:
- Taylor Swift, Beyoncé Tours Inspire New Era of Financial Spending
- Millennials and Gen Xers Prefer Phased Retirements
- Personalized IRAs Coming Q1 2024 from New Morningstar Retirement, Envestnet Partnership
- Joe Forlines’ Honor and Duty in IRAs and Beyond
- Inflation and Unemployment Decline While Account Balances Grow: Vanguard
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
