Millennials: ‘Saving for retirement can wait’
September 19 2018 - 8:15AM
Nearly 4 in 10 young adults in America believe that saving for
retirement can wait, according to a newly released special report
from Navient’s Money Under 35 national study. The research finds
that many young adults, ages 22 to 35, tend to prioritize
short-term goals like homeownership, saving for vacation, paying
down debt or building an emergency fund.
“Many millennials just starting out may struggle to balance
paying down debts and saving money, especially for retirement,”
said Julie Wilson, head of research for Navient. “Our research
explores how these trade-offs affect their financial health in the
short term.”
Key findings from Navient’s special report include:
- Only 3 in 10 young adults (31%) report saving for
retirement. Of those who are saving, the average amount
saved was $32,818 last year, a decrease from the 2016 average of
$37,638.
- Bachelor’s degree holders are the most likely to be
saving for retirement. Nearly half of bachelor’s degree
holders aged 22 to 35 (45%) are saving for retirement, more than
their peers with other levels of education: 38 percent of advanced
degree holders, 31 percent of associate degree holders and 25
percent of young adults who do not have a degree.
- Student debt is not preventing young adults with a
degree from saving for retirement; however, graduates who
paid off their student loans are able to save more. Bachelor’s
degree holders who paid off their student loans have saved twice as
much as those who are working on repayment ($47,297 vs. $25,301
respectively).
- Young adults who can simultaneously pay down student
debt and save for retirement are more likely to report better
financial health. However, for those who prioritize one
goal over the other, young adults who pay off debt are more likely
to feel “very good” about their financial health, compared to those
who prioritize saving for retirement (36% vs. 23%
respectively).
- Young adults with access to an employer 401(K)-match
program are nearly twice as likely to save for retirement.
Young adults whose employers offer a 401(k) plan have an average of
$32,851 saved for retirement, nearly 75 percent more than those who
don’t have that access ($18,879).
It’s never too late or too early to start saving for retirement.
Navient offers several free resources to support adults of all ages
with their retirement savings strategy. For example, the latest
blog post offers three steps to get started saving for retirement.
Navient's
Money Under 35 study, conducted in partnership with global research
company Ipsos, is based on a survey of more than 3,000 adults aged
22 to 35. The special report and complete Money Under 35 study is
available at Navient.com/MoneyUnder35.
Connect with @Navient on Facebook, Twitter, LinkedIn
and Medium.
About NavientNavient (Nasdaq: NAVI) is a
leading provider of asset management and business processing
solutions for education, healthcare and government clients at the
federal, state and local levels. The company helps its clients and
millions of Americans achieve financial success through services
and support. Headquartered in Wilmington, Delaware, Navient employs
team members in western New York, northeastern Pennsylvania,
Indiana, Tennessee, Texas, Virginia, Wisconsin and other locations.
Learn more at navient.com.
Contact:
Media: Nikki Lavoie, 302-283-4057,
nikki.lavoie@navient.com
Customers: 888-272-5543
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A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/77c5f625-5e1f-46f3-a074-aead900ddee3
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