Millennials' Other Financial Goals Compete with Retirement Savings

The large majority (82%) of Millennials (ages 18 to 34) deposit money toward their investment goals on a regular, scheduled basis throughout the year—far more consistently than their older counterparts, according to financial services firm Scottrade, Inc.’s 2016 American Investor Report.

However, saving for education and home ownership are competing priorities for Millennials when it comes to retirement planning. For example, 60% of Millennials say a mortgage is a top financial priority. And, about one in three Millennials (30%) say educational expenses are the financial priority they feel least prepared to cover and would most delay their retirement plans (34%).

Generally speaking, Millennials tend to invest for a variety of reasons. The No. 1 reason Millennials invest is to have an emergency/“rainy day” fund (43%). But, when asked how long their current emergency fund would last if they lost their job, most Millennials would be ill-prepared.

Two in three Millennials (65%) say they would make it less than six months (compared with 34% of Gen Xers, 16% of Baby Boomers and 7% of senior citizens). They are also much more likely than other generations to invest so they can afford a new home, a new car or another large purchase.