Affluent Millennials Don't Think They'll Retire By 65
According to New Investopedia Study, Affluent Millennials Aren't Investing Enough, and They Know It
NEW YORK, Oct. 2, 2019 /PRNewswire/ -- Today, Investopedia (www.investopedia.com), one of the world's largest financial and investing websites, announced findings from a recent survey, which found that nearly half of affluent millennials say they think they will be forced to work beyond retirement age. While millennials see investing as the primary vehicle for saving for the future, they also find it overwhelming and intimidating. However, those who learn about investing at an early age are more likely to feel confident about their own financial decisions.
Investopedia partnered with Chirp Research to conduct a nationwide survey of affluent millennials (a population with the means to invest, with an average HHI of $132,000) to understand their investment goals, retirement plans, and the barriers to investing.
"This is the first generation that entered their professional lives in the wake of the 2008 financial crisis," said Caleb Silver, Investopedia Editor in Chief. "Despite financial technology becoming readily accessible to them, many still feel that they lack enough financial and investing knowledge to get started."
Other key findings from the study:
Affluent millennials see investing as overwhelming and intimidating
- Thirty-six percent agree they should be investing more
- When asked what positive terms they associate with investing, their top choices were: smart (40%), necessary (34%), responsible (35%). The financial crisis hasn't turned this generation against the stock market.
- But the barriers were clear, as the top negative terms were: risky (37%), intimidating (26%), and overwhelming (24%)
Financial education is the core factor driving investment behavior
- Early education has an impact: affluent millennials who learned about investing before they were 15 were more than 2X more likely to feel knowledgeable about the topic (37% vs. 16%).
- Those that feel more knowledgeable about investing were 5X more likely to feel very confident in their ability to make their own financial decisions (73% vs. 14%) and were nearly 4X more likely to manage their investments daily or weekly (78% vs. 20%).
Financial Advisors (FA's) Are a Trusted Source of Education
- 37% of affluent millennials describe investing as "risky," and nearly half (43%) have an FA.
- FA's are the #1 trusted source for financial advice among affluent millennials; more than books, TV shows, newspapers, podcasts/radio, magazines, websites, or YouTube.
- Those who have an FA are 2x as likely to report better investment performance.
"The survey paints a picture of a generation that is trying to tackle planning for the long term while perceiving investing as risky, all despite having the funds to invest. Critically, the single factor in this study that best predicted being invested--and achieving better results--was financial education. This represents a huge opportunity to better support millennial consumers in their financial journey," said Dr. Joetta Gobell, Vice President of Research and Insights at Dotdash, Investopedia's parent company.
To learn more about the study, please visit here.
About Investopedia
Investopedia helps more than 11 million monthly U.S. users (comScore Media Metrix August, 2019) learn how to understand complex financial concepts, improve their investing skills, and learn how to manage their money. Whether in a classroom, a boardroom or a living room, Investopedia editors and its network of financial advisors and experts have answered questions and earned readers' trust since 1999. Investopedia is part of the Dotdash family of brands.
SOURCE Investopedia
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