Surveys often ask millennials how they will retire, but with yet another recent survey reporting that they lag in saving and planning, perhaps it’s time to ask whether retirement is possible for Generation Y.
The survey, from the Indexed Annuity Leadership Council, suggests the retirement picture may be bleaker than once thought with more than one-third of millennials failing to save for the future.
While just 26 percent of Americans overall claim to have no retirement savings, the new survey reports that 37 percent of those aged between 18 and 34 years old have no money set aside.
There has been scant good news to report on the millennial generation’s prospects for retirement so far in 2015: Another recent survey, from TIAA-CREF, reported that nearly 31 percent in the same age group have failed to save.
The newest numbers are equally discouraging for millennials who have started their savings: 24 percent report having more debt than retirement savings, and 18 percent of millennials have less than $5,000 saved for retirement.
All told, over 60 percent of millennials are in debt or haven’t saved, and another 18 percent have less than $5,000.
Millennials expect to rely on different methods to fund their retirement, 46 percent of respondents will fall back on their personal savings, and another 43 percent will lean on a 401(k). Less than one-third, 33 percent, will rely on an IRA. Millennials, more than any other age group at 52 percent, are interested in fixed index annuities.
The survey, conducted in March and April of 2015, sampled 6,836 respondents.
The Indexed Annuity Leadership Council is a trade consortium of life insurance companies.