Millennial workers are placing more importance on their retirement savings in 2024.
New findings from Voya Financial reports the younger cohort is placing an emphasis on their long-term savings, as 95% of Millennials believe that making contributions to their retirement plan is extremely important or important, compared to 67% of Baby Boomers.
On the other hand, Gen Z respondents were significantly less likely (67%) to stand firm in their investments during a volatile market environment, compared to Gen X workers (84%) and Boomers (88%).
The research reports that 72% of Americans are extremely likely or likely to save for retirement starting in the new year, an increase from 68% in October of 2022. Eighty-three percent of overall respondents say that making contributions to their retirement plan is essential, while another 83% also believe that staying the course during volatile markets and keeping a long-term view on their investments is vital.
Only 28% of employed Americans say they are extremely likely or likely to take a loan or withdrawal from their employer-sponsored retirement plan in 2024, down from 45% two years ago. Instead, 71% of respondents are allocating funds to an emergency savings account.
Seeking retirement advice for remaining challenges
Despite their best efforts, Millennials and Gen Zers continue to struggle with debt, which can impede on their retirement savings. These younger groups (56% Millennials and 52% Gen Z) were more likely than all Americans (41%), Gen X (42%), and Boomers (23%) to carry a credit card balance from month to month.
However, interest in seeking financial advice is strong among these groups, adds Voya, as Gen Z (69%) and Millennials (65%) are significantly more likely than Gen X (48%) and Boomers (34%) to use digital tools to help them understand their overall spending and savings picture in 2024.
Among employed Americans, Millennials (67%) are significantly more likely than Gen X (49%) and Boomers (34%) to utilize workplace advice services, like managed accounts, to better understand their overall savings picture in 2024.
Voya fielded responses from 1,005 adults in the U.S., featuring 467 Americans working full-time or part-time.
SEE ALSO:
- Millennials Surpass Older Workers with Retirement Savings
- Over 80% of Gen Zers and Millennials Seek Financial Advice
- Millennials, Gen Z Cutting Back on Retirement Contributions?
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.