Nearly half (47 per cent) of U.S. millennials are moderately confident in their ability to accumulate enough retirement savings, according to a new survey by software company Iralogix Inc.
The survey, which polled more than 500 workers between the ages of 28 and 43, found 29 per cent said they have no confidence in their ability to save enough for retirement. Nearly two-thirds (61 per cent) of respondents said they make monthly contributions to an employer-sponsored retirement plan like a 401(k) or 403(b).
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More than half (55 per cent) said retirement savings are the responsibility of individual employees, while 25 per cent said employers should ensure workers have sufficient savings and 20 per cent said the government should provide retirement savings. Among those who said employers should ensure workers are retirement ready, 37 per cent said employers should offer retirement benefits package like a 401(k) or similar with a competitive employee match and 24 per cent said they want to be a part of a defined benefit pension plan.
The survey also found more than half (51 per cent) of respondents said they define retirement by achieving financial independence without needing a traditional job. Indeed, the concept of exiting the workforce at the age of retirement is changing for some millennials, as 16 per cent said they aren’t planning to stop working with retirement and are instead looking for greater flexibility.
Nearly half (47 per cent) of millennials said they plan to retire as soon as they can afford it, while slightly more than a fifth (22 per cent) said the plan to stay in the workforce due to enjoyment of their career or because they don’t have enough savings for retirement.
“The survey underscores a fundamental shift from what we previously understood: millennials don’t perceive retirement solely as a departure from the workforce,” said Lowell M. Smith Jr., co-founder of Iralogix, in a press release. “Instead, they define it as a stage of life characterized by enhanced career flexibility and an opportunity to pursue passion projects and hobbies, fostering personal fulfillment and making a meaningful social impact.”
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