Millennials are the Most Overconfident, Financially Irresponsible Generation, Study Finds

millennialsfeat

The latest numbers for Northwestern Mutual’s 2015 Planning and Progress Study are in, and they reveal that millennials are still the most optimistic group when it comes to their financial situations but that they also see themselves as the most financially irresponsible generation.

The study surveyed 2,000 Americans in January to gauge how the population felt about their finances this year. Here are the statistics for American millennials:

-Mostly savers: 64% of millennials would rather save money than spend it — 67% of the general population consider themselves savers.

-Over half (53%) of millennials have set financial goals compared to 38% of Americans age 35 and older.

-The majority (71%) of millennials feel secure or very secure that they will achieve their financial goals.

-Yet, 61% of millennials believe they are less financially responsible than their parent or grandparents.

-Working past retirement: 73% of millennials expect to work past the age of 65 because they don’t trust that social security will take care of them.

-Less than half (46%) of millennials who expect to work past retirement age say it would be by choice, choosing their career over leisure.

-Most confident: 59% of millennials expect their financial situation to improve this year compared to the 41% of the general population who expect their situation to improve.

-Almost half of millennials have taken the first step towards financial successful planning (i.e., spoken to a partner, family or advisor about retirement) — 43% of Americans have taken no steps on financial planning.

Northwestern Mutual’s study also revealed some other interesting financial insights about Americans:

-Financial crisis: 67% percent of Americans expect another financial crisis similar to the 2008 crash.

-Few crisis planners: 38% are confident their financial planning can withstand a market crash and 23% are not confident.

The two greatest financial fears include having an unplanned financial emergency or not having enough to retire comfortably.

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Conclusion

Millennials seem to be on the right path given the current financial circumstances. Saving can do wonders for younger people who take advantage of compound interest. The best trend to take over is financial planning, especially when the majority of Americans are expecting another economic crisis. With most planning for the future, millennial overconfidence could just be hoping for the best but planning for the worst.

h/t: Business Insider

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