Most millennials expect to retire at age 56
Millennials may not have the best reputation for financial savviness, but according to a new report released on Monday, most of them are optimistic about their future retirement plans.
A new study published by TD Ameritrade found that on average, millennials expect to retire by age 56.
And of the 1,500 millennials surveyed for the study, 53% expect to become millionaires at some point in their lives. However, that percentage is unevenly divided between men and women: Of those surveyed who expect to become millionaires, 70% are men, compared to 38% of women.
Perhaps what’s surprising about the report is that so many millennials expect to retire so young, despite the mass amounts of student debt that many are carrying. According to the study, millennials collectively have $1 trillion in student loan, credit card and other debt, and almost one quarter of the group expects they’ll never be able to pay off their loans.
Despite that, a large majority of young people are saving for retirement -- and that trend seems to be increasing. Seventy percent described themselves as savers, up from 62% in 2016.
“One of the greatest investments young people can make in themselves is to start putting money away in their 20s,” J.J. Kinahan, chief strategist at TD Ameritrade, said in the study. “Because of the power of compounding, even with ups and downs along the way, those who start early can end up with more in the end.”