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Data & Research June 7, 2011
Burdened with Debt, Millennials Struggle to Save
Research from SBR Consulting finds 41% of millennials (those
born between 1980 and 2000) make saving for retirement a priority.
Reported by Rebecca Moore
In online discussions hosted by SBR, many young adults said they have zero expectations that Social Security will provide assistance during retirement. However, many in this generation are too tied up paying off college debt and saving for their first home.
The research report said about two-thirds of Millennials are graduating with debt at an average of more than $20,000. In addition, about one-quarter (27%) of Millennials still rely on their parents for financial support to help pay bills, and about one-fifth (22%) help their parents or other family members pay their bills. Yet 70% say they are positive about their future in general.
Seventy percent of Millennials say there is a possibility they will change jobs after the economy improves. About one-half (48%) report they are in a job they do not want to be in, and nearly half (46%) agree the following statement pertains to their situation: “high unemployment, the time it has taken to start my career, and a slow and hesitant recovery have severely hampered my start in life.”
Taking a job that they were overqualified for was a necessity as they looked for a job in their field or something close to their “dream job.” Others expressed that the job they took may not have been the ultimate job they thought they would find when they graduated, but took it for the potential opportunity.
The top three priorities or needs that are most important to this generation are compensation, flexible work schedule, and opportunity to make a difference.
Nearly two in five Millennials (37%) say they do not trust big businesses. Millennials have a perception that the companies they work for care more for the company’s financials than they do about the people working at the companies. SBR Consulting noted this will impact businesses as the economy improves and they court this generation to work for them and buy their stuff, but it could work in favor of small to medium size businesses.
Entreprenuerism is not big with this generation, as only 9% plan to open a business within the next five years.
More about SBR Consulting is at http://www.sbrconsult.com.