Millennials’ Goals and Retirements

On Apr 18, 2016

Bank of America Merrill Edge today released its Spring Merrill Edge Report, which found nearly half of Millennials expect to retire when they reach their financial goals, unlike members of other generations, who expect to retire when they reach a certain age or when they can no longer work due to health concerns.  In comparison to their elders, this generation is more likely to pursue a passion, further their education, or start/grow their own business in their golden years.

New Jersey regional highlights from the report:

• One-third (33 percent) of New Jersey non-retirees expect to retire when they achieve a specific financial milestone or savings goal; however, only 6 percent of New Jersey retirees say they entered retirement upon reaching their financial goals.

• In line with the national findings, the survey also revealed that New Jersey non-retirees are viewing retirement as a time to reinvest in themselves, their personal interests and finances for optimal retirement living. Many (44 percent) New Jersey residents view retirement as something they look forward to.

• Retirees surveyed believe the outcome of the 2016 presidential election will have on their long-term financial goals, the top response was no impact (38 percent), compared to 30 percent who cited a positive impact and 19 percent negative.

Additional national highlights from the report include:

• Americans are most insecure about their finances: Nearly half (48 percent) of Americans say they are most insecure about some aspect of their finances (financial future, retirement savings, or income), with retirement savings (21 percent) as one of their top insecurities, ahead of their personal relationships (10 percent), judgment of others (6 percent) and career path (4 percent).

• Unexpectedly, retirees are spending more in retirement: When asked what they have done in retirement that they didn’t expect to, retirees’ top response was spent more money than anticipated (30 percent), in addition to moving to a new location (19 percent) and feeling a lack of purpose (18 percent).

• Millennials believe the election will have a positive impact on their finances: Forty-seven percent of millennials believe the outcome of the 2016 presidential election will have a positive impact on their long-term financial goals, higher than any other generation.

For the full report, please click here.

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