According to new research from Schwab Retirement Plan Services, Millennials are taking positive steps when it comes to saving and investing. This is especially the case when it comes to their 401(k)s. More then ever, Millennials are focused on their financial future and are open to professional assistance in managing their money.
Schwab’s nationwide survey examined the attitudes and behaviors of 500 American workers who currently contribute to a 401(k), including Millennials (25-36 years old), Gen Xers (37-52) and Baby Boomers (53-70). It confirms each generation recognizes how important a 401(k) plan is in preparing for retirement. The study reveals 86 percent of Millennials, 90 percent of Gen Xers and 84 percent of Boomers consider a 401(k) plan “must-have”.
Millennials are more dependent on their 401(k) for retirement savings then other source. 78 percent say 401(k) is their largest or only source of retirement income.
“It’s heartening to see that saving for retirement has become a priority for so many workers, especially the youngest generation of workers, for whom retirement can seem like a lifetime away,” said Steve Anderson, president, Schwab Retirement Plan Services, Inc. “Our findings show that, in spite of – or perhaps because of – the financial challenges they faced as they entered the workforce, Millennials know how critical it is to keep on top of their finances today with an eye toward tomorrow.”
Financial stress has affected the job performance of more than a third of Millennials (35%). Student loan debt is a major contributing factor in the source of this stress with 24 percent identifying it student loans as a cause. Despite this hardship, 80 percent of Millenials say they are caught up on bills and have some money left over at the end of the month.
Despite being disproportionally stressed about their finances, Millennials are continuing to take steps toward saving and investing. 25 percent are investing in the stock market while 34 percent report contributing extra money toward their 401(k).