An Insured Retirement Institute (IRI) report reveals more than half of Millennials are making contributions to 401(k) accounts and four in ten are contributing to personal savings with an eye toward retirement.
The study also noted Millennials are saving at higher rates than 46 percent of Baby Boomers and 36 percent of GenXers with no retirement savings.
“It is encouraging to see Millennials saving for retirement and contributing to workplace and personal retirement accounts,” Cathy Weatherford, IRI president and CEO Cathy Weatherford, said. “While Millennials are saving, most are not planning, with only 34 percent of them having sought the advice of a financial advisor. Considering that the top three financial areas Millennials want help with are calculating retirement savings goals, paying off debt and creating a retirement plan, advisors have an opportunity to help Millennials increase their wealth and prepare for retirement. Millennials also demonstrate a desire for guaranteed lifetime income and 93 percent are open to purchasing an annuity.”
The report references Millennials want flexibility and choice during retirement – with the majority associating the word freedom with their feelings about retirement and 50 percent believing retirement means being able to decide whether, and/or how much, to work.
IRI officials said the report also determined a third of Millennials expect healthcare costs to be their largest expense during retirement, ahead of housing and utilities as well as travel and leisure.