New York, March 6 (IANS) Nearly two-thirds of working millennials — born between 1980s and 2000 — are not saving up for their life post-retirement, finds a study.
The findings showed that only 37.2 per cent of working millennials had retirement accounts.
Among self-employed individuals, only 17.6 per cent had a retirement account of any kind.
In addition, advanced degree holders were more likely to have a retirement account compared to those with a high school diploma or below — however smaller the amount might be.
“Compared to older generations, millennials are less likely to have employer-provided pension or defined benefit retirement plans,” said Rui Yao, Associate Professor at the University of Missouri in the US.
“While it could be assumed that millennials have plenty of time to save for retirement, they have to shoulder more responsibility than their parents and grandparents to do so,” Yao added, in a paper published in the Family and Consumer Sciences Research Journal.
Using data from the 2013 Survey of Consumer Finances, the study examined the state of Millennials’ retirement savings, including retirement account ownership and balance.
The team analysed the saving behaviours of millennials with at least one year of employment, making them eligible to contribute to a defined-contribution plan.
Factors that affected retirement saving behaviour included age, education, total household income and assets, job tenure, self-employment, having a retirement saving motive, having a defined benefit plan, overspending, and risk tolerance.
Among those with a retirement account, the average accumulated amount was $21,333.
“The results suggest that financial education about saving for retirement is absolutely necessary,” Yao said.