JP Morgan researched how millennials should save for retirement recently, in a study entitled "The Millennials - Now streaming: the millennial journey from saving to retirement." The study outlines a variety of techniques and methods, but the following represent key findings according to a press release distributed by the company.
- Millennials are an educated demographic, yet face anemic wage growth and high student loan debt rates.
- Millennials prefer to hold onto cash, waiting longer to marry or purchase homes.
- Over 75% of people in their 50s experience one of the following things that prevents them from saving: job loss, spouse death, divorce, health issues or an elderly parent to care for.
There is positivity on the horizon, however, as millennials who put anywhere from 4 to 9% of their income toward retirement will benefit from a secure financial future. In addition, saving up to purchase a home is a plus, as buying a home means unlocking equity to assist with difficult financial situations in the future.