Millennials have faced many challenges as they transition into the workforce. Saddled with an unstable job market and a surmountable amount of college debt, millennials are making a more conscious effort to save for retirement.
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However, one central question continues to be asked: Are young people actually saving?
A new survey from Merril Edge shows how different generations are managing their finances. In an interview with the FOX Business Network’s Mornings with Maria, Head of Merril Edge Aron Levine said young people are aware of the need to save.
“There are a lot of competing priorities. There are a lot of things they [millennials] are trying to save for, especially trying to get out of debt, number one,” Levine told host Dagan McDowell. “And of course, thinking of buying a home, thinking about different things so it’s a challenge of how to put the savings towards retirement.”
The recent survey suggests retirement is being redefined by millennials as 40% say they will retire when certain financial goals are met. More importantly, over 50% define retirement as starting something new and less about taking the next 20 years as leisure.
“In our survey, 49% of millennials said they give themselves a ‘C’ or worse on planning for retirement savings,” Levine said. So in school, if you are getting a ‘C’ or worse, what do you do? You go see the teacher, you go talk to someone.”
Levine went on to say millennials need to get themselves educated and have someone to give them a disciplined plan for retirement.