Even though millennials often get a bad rap for being frivolous, a new study from New Jersey-based fintech firm LendEDU found 58 per cent are saving for retirement — and with the time value of money on their side, they could be better prepared than some had previously thought.
The survey found the average amount saved so far is $26,475, though it varies widely by age. Millennials under age 27 have saved $7,796, those age 28 to 32 have $21,375 saved and those over 33 have an average of $39,787.
The majority of millennial respondents also said they see the value of advice: 65 per cent would prefer a human advisor over a robo-advisor and only 16 per cent would opt outright for the robo. Of the one-fifth of millennials who have advisors, 89 per cent think they’re worth the cost, the survey found.
Income was significantly correlated to retirement savings, as only 34 per cent of millennials earning $49,000 a year or less reported actively contributing to investment accounts for retirement, compared to 77 per cent of those earning $100,000 or more annually.
Interestingly, the survey found all income groups had saved roughly the same amount — $26,450 in the lowest income group and $26,638 in the highest.