Millennials have faced so many financial and economic hurdles in saving for retirement that it’s surprising they still have the stamina to keep sprinting toward their goals.
This generation has the highest percentage of consumers with student loan debt. Many entered the workforce during or in the aftermath of the Great Recession. They’re past the golden era of pensions. They suffered through the COVID-19 pandemic. And a growing number of Millennials find themselves part of the “sandwich generation,” meaning they simultaneously care for their children and parents.
The flip side? That student loan debt runs parallel to the fact that Millennials are considered the most formally educated generation. Pensions might be on the decline, but Millennials do have 401(k)s and other workplace accounts on their side. And this generation is expected to collectively inherit $27 trillion (primarily from Baby Boomers) as part of the Great Wealth Transfer.
So, where does that leave Millennials on their path toward retirement? These Millennial retirement statistics can give you a better idea about this generation’s retirement prospects.
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Table of Contents
How Much Does the Average Millennial Have Saved for Retirement?
Millennials, on average, have $62,600 currently saved for retirement, according to the Northwestern Mutual 2024 Planning & Progress Study. Although this is a far cry from the $1.65 million they expect to need to retire comfortably, most Millennials are still decades away from retirement and have many more working years to add to their nest eggs.
But there are many other Millennial retirement statistics that will give you a fuller picture of the age group’s post-career preparedness.
Millennial Retirement Statistics
The following statistics are compiled from multiple surveys and studies about Millennials’ retirement savings and opinions.
These statistics show a mixed bag—some positive trends concerning retirement saving, but also signals that Millennials are struggling financially. As a whole, though, they should give you a better sense of Millennials’ retirement savings journey.
1. 85% of working Millennials are saving for retirement in a 401(k) or similar account and/or a non-workplace retirement account.
Overall, 81% of people who are offered a 401(k) or similar plan participate in that plan. Millennials and Gen X are tied at the highest participation rate (85%), followed by Baby Boomers (80%), and Generation Z (65%).
Of course, 401(k) plans aren’t required to let people younger than age 21 join; while some let younger people participate, most set the minimum age at 21. That could help explain the lower percentage of Gen Z participants, as could a combination of relatively low pay and high obligations, such as student debt. (Source: Transamerica Institute1)
Related: Is Your Retirement on Track? Here Are the Average 401(k) Balances by Age
2. On average, Millennials started saving for retirement at age 27.
As you might expect, the average age at which people started saving for retirement trends younger by generation.
— Baby Boomers: 44
— Gen X: 36
— Millennials: 27
— Gen Z: 20
Broadly, you can expect those numbers to climb as the generations age—though whether any generation catches up to Baby Boomers is an open question. That’s because retirement information and activism is far more prevalent now than it was when Baby Boomers were their respective generations’ ages.
In fact, it’s possible that each of these generations actually are (on average) starting a little earlier than the generation before.
Funnily, people from every generation—even fresh-faced Gen Zers—wish they had started earlier. The age at which each generation wishes it had started:
— Boomers: 33
— Gen X: 26
— Millennials: 22
— Gen Z: 18
(Source: Fidelity Investments2)
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3. A majority (52%) of Millennials report managing their own retirement savings.
That makes them the most likely generation to DIY their retirement savings. Meanwhile, 25% of Millennials say they manage their own retirement savings but regularly seek advice, while 11% say they pay a financial advisor. (Source: Goldman Sachs Asset Management3)
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4. Three-fourths of Millennials are confident they will retire when and how they want.
Gen Zers are a touch more optimistic, at 76%. But by comparison, that’s a meaningfully higher level of confidence compared to Baby Boomers (71%) and Gen Xers (69%), both of which are actually much closer to the retirement finish line. (Source: Fidelity Investments2)
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5. A majority of male Millennials are confident they will achieve their savings goals for a quality retirement; however, fewer than half of female Millennials aren’t.
Millennial males are more confident than women about their ability to hit a number of achievements, including their life aspirations (75% vs. 65%), financial aspirations (71% vs. 57%), and savings goals for a quality retirement (64% vs. 49%).
Also, Millennial parents are more likely to be confident about their retirement savings goals (58%) than nonparents (51%). (Source: CFP Board4)
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6. 41% of Millennials say it has been either easier or much easier to accomplish financial milestones relative to their parents’ or guardians’ experience.
However, a similar percentage (40%) of Millennials say it has been more difficult or much more difficult.
Also, men (44%) are likelier than women (37%) to believe they’ve had an easier time to hit those milestones, while women (43%) are likelier than men (36%) to believe the path has been more difficult. (Source: CFP Board4)
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7. Around 43% of Millennials say their financial situation is slightly or much better than their parents’ or guardians’ experience at the same age.
About 32% of Millennials say their financial situation is slightly or much worse than their parents’ or guardians’ experience at the same age. Millennials who are married and/or parents are more likely to consider their current personal finance situation positively relative to their parents or guardians than those who are unmarried and/or not parents. (Source: CFP Board4)
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8. 69% of Millennials report their retirement savings are on track or ahead of schedule.
Similarly, 68% of Gen Z report the same. Meanwhile, 45% of working Baby Boomers and Gen X report that their savings are behind schedule. (Source: Goldman Sachs Asset Management3)
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9. Nearly a third of Millennials get retirement investment advice from social media.
Of the Millennials who get their advice from social media (32%), preferred platforms include TikTok, Twitter/X, and Facebook.
Also worth noting is that 46% of Millennials scour the Internet for retirement insights. (Source: Natixis Investment Managers5)
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10. Just 30% of working Millennials have a written financial strategy for retirement.
Despite this low number, Millennials are actually more likely to have a written plan than members of any other generation. Only 24% of Baby Boomers have a written plan, which is just a pinch higher than the 23% for both Gen X and Gen Z. (Source: Transamerica Institute1)
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11. 78% of Millennials want cryptocurrency in their retirement plan offering.
That’s a massive percentage compared to the 52% across all age groups.
Sustainability-focused options were much more desired among all age groups (82%), though they were even more popular among Millennials, at 92%. (Source: Natixis Investment Managers5)
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12. 83% of Millennials think Social Security benefits will be substantially reduced by the time they retire.
The vast majority of Millennials are counting on a smaller government check when they call it a career. Though, Gen X is pretty skeptical about Social Security, too, with 78% believing they’ll receive reduced benefits.
How bad is it? Less than half (46%) of Millennials are even including Social Security in their retirement planning. This age group is also looking past traditional retirement income sources for more ways to earn money than any other generation—”including equity in their homes (29%), inheritance (24%), rental income (19%), sale of a business (19%), and support from their children (19%).” (Source: Natixis Investment Managers5)
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13. 21% of Millennial workers have taken a hardship withdrawal and/or early withdrawal from an IRA, 401(k), or similar plan.
That’s higher than the average 19% of all workers who have taken an early and/or hardship withdrawal.
Hardship withdrawals from one’s elective deferral account are made when there is an immediate and substantial financial need and the amount withdrawn is limited to the minimum amount necessary to cover that need. Any withdrawn money is taxed (unless it’s a Roth contribution) and not repaid to the borrower’s retirement account. In some situations, the money might also be subject to a 10% additional tax on early distributions.
Retirement plans are not required to allow hardship distributions, and employers decide whether the employee qualifies for one. (Source: Transamerica Institute1)
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14. Fewer than half of Millennials are expected to own a home in retirement.
As part of a survey that also used advanced predictive modeling techniques, a Schwab report predicts only 48% of Millennials will own a home in retirement. That’s extremely low compared to three-quarters of Boomers and Gen Xers. (Source: Schwab6)
Related: Should I Pay Off My Mortgage Before I Retire?
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Millennial Retirement Statistics Sources
1 Transamerica Institute (https://www.transamericainstitute.org/docs/research/generations-age/multigenerational-workforce-life-work-retirement-survey-report-2024.pdf)
2 Fidelity Investments (https://preview.thenewsmarket.com/Previews/FINP/DocumentAssets/663841.pdf)
3 Goldman Sachs Asset Management (https://am.gs.com/en-us/individual/news/press-release/2024/retirement-survey-generations-report)
4 CFP Board (https://www.cfp.net/-/media/files/cfp-board/knowledge/reports-and-research/consumer-surveys/2024-millennials-financial-milestones-survey-results_d3.pdf)
5 Natixis Investment Managers (https://www.im.natixis.com/en-us/about/newsroom/press-releases/2023/american-workers-want-retirement-plans-that-better-meet-their-needs-in-complex-financial-environment-finds-natixis-investment-managers-survey)
6 Schwab (https://pressroom.aboutschwab.com/press-releases/press-release/2022/Retirement-Reimagined-Empowered-by-Early-Savings-Millennials-Are-Reshaping-What-It-Means-to-Retire-With-an-Emphasis-on-Flexibility-and-New-Experiences/default.aspx)
