The biggest issue keeping Millennials up at night is
debt, according to the latest survey by Lincoln Financial Group. The firm found
that this is an issue for 48% of respondents in that age group; meanwhile, 44%
of Generation Xers and 58% of Baby Boomers reported their biggest financial issue was healthcare
According to the research, student loan debt (54%)
is Millennials’ top concern. Seventy percent of those who are currently paying
off their student loans say they are not managing the process very well.
The study went on to show that the 18- to 34-year-olds
surveyed are facing a number of other challenges when it comes to planning
their financial future: Only 33% have a retirement account versus 48% of the
general population. Immediate payments make it hard for 74% to put money into
retirement. Four out of five say they are saving for other things like a new
car or house instead of retirement. More than half (60%) say they dread looking
at or talking about their personal finances. Only 31% of Millennials have life
insurance, versus 49% of the general population.
“It’s not a surprise our survey found that nearly
three quarters of Millennials are finding it hard to balance living in the
moment with planning for the future,” says Jamie Ohl, president, retirement plan services for Lincoln Financial Group. “They are at a point in their lives
where they are experiencing many major milestones— but it’s important they
prioritize their future and create a strategy that can help them achieve their
current and future financial goals.”
To reverse this trend, Lincoln Financial is dedicating
a portion of its website to helping Millennials and all generations better
manage their finances with articles and various tools about money management
and saving for retirement.
Advisers can step in too. The survey found that technology is important to this generation, but
personal touch is still key. When selecting a financial product,
Millennials are most influenced by recommendations from friends on social
networks (49% versus 32% of the general population). Millennials turn to their
parents first for financial information (55%), followed by online search (39%).
The next time they buy a financial product like an annuity or life insurance,
they would prefer to do so online (41% versus 29% of the general population).
Although the survey findings showed that just 16% of
Millennials used a financial adviser when they made their last financial
product purchase, those who have a relationship with a financial professional
are satisfied with the guidance they receive (95%).
“A trusted financial professional is another valuable
resource to help Millennials plan for the near future and their retirement,”
says Ohl. “Beyond that, advisers are positioned to help all consumers not only
understand their options, but also work with them to develop a plan that is
tailored to their specific situation.”
Results for the 2016 M.O.O.D. (Measuring Optimism,
Outlook and Direction) of America poll are based on three national surveys
conducted by Whitman Insight Strategies on behalf of Lincoln Financial Group in
March and April 2016.
The M.O.O.D. of America survey was conducted among
2,267 adults 18 years of age and older across the United States.