Nearly 40% of Young Adults Think Retirement Savings Can Wait
Only 31% of those between the ages of 22 and 35 are saving for retirement.
Nearly four in 10 young adults, those between the ages of 22 and 35, think saving for retirement can wait, according to a survey by Navient. Instead, they are prioritizing short-term goals, such as home ownership, saving for vacation, paying down debt or building an emergency fund.
Only 31% of young adults are saving for retirement. Among this group, they saved an average of $32,818 last year, down from $37,638 in 2016.
Among young adults with a bachelor’s degree, 45% are saving for retirement. Among those with advanced degrees, the figure is 38%. Thirty-one percent of those with associate degrees are saving for retirement, and 25% of those without a degree are doing so.
Bachelor degree holders who have paid off their student debt have saved an average of $47,297, compared to $25,301 for those who have not paid off this debt.
Thirty-six percent of young adults who are both paying off debt and saving for retirement but who have made paying off debt their No. 1 priority feel “very good” about their financial health, whereas this is only true for 23% of those who have made saving for retirement their No. 1 priority.
Among those young adults who have access to a retirement plan with a company match, their average savings is $32,851. For those who don’t have such access, their average savings is $18,879.