While many Millennials shoulder a lot of debt following college, the generation as a whole is “optimistic” about their futures and how much wealth they will accrue, according to a money survey by TD Ameritrade.
The survey also found that 25 percent don’t expect to get married, 24 percent don’t expect to own a home, and 30 percent don’t expect to have children.
Most Millennials expect to land a job in their chosen field and to be financially independent by age 25, according to JJ Kinahan, chief strategist for TD Ameritrade. “However, they will need to develop saving and investing habits that will help them reach some pretty big goals,” he noted.
Fifty-three percent “expect to become millionaires at some point,” according to the survey. But 20 percent don’t believe they’ll be able to pay off their student loans. Seventeen percent said they’re still not financially independent from their parents. Only 32 percent said they’re very knowledgeable about investing.
On average, Millennials said they expect to retire at age 56 (with men claiming they expect to do so at age 53). What makes this most interesting is that on average Millennials said they didn’t plan on saving for retirement until age 36—over a decade after they expected to land their first real job. Still, 28 percent said they didn’t expect to retire at all.
Kinahan noted that investing right after college is the best decision, even if it’s not always possible.
“Understanding all of the available alternatives, like employer-sponsored retirement accounts or brokerage accounts, can be a step in a right direction,” he noted. “And, if you’re not sure, talk to someone. The sooner you can get started, the better your financial prospects may be.”
The good news is that Millennials are saving more than did a couple of years ago (70 per cent in 2018 versus 62 per cent in 2016). What are they saving for? The top reasons are; vacation (43 per cent), emergencies (39 per cent), and retirement (38 per cent). Twenty-five per cent surveyed said they started saving for children or grandchildren’s education.