Tip:
Highlight text to annotate it
X
Millennial Video Script-Karen Wimbish
In our new 2013 Wells Fargo Millennial study, we surveyed 1,000 millennials between the
ages of 22 and 32 to see their attitudes and behaviors around money and savings.
We've heard a lot about the pressing debt that millennials are experiencing today, and
our study shows that. But our concern is how that is impacting savings, specifically for
retirement.
54% of millennials tell us that their #1 financial concern is debt and 36% of it is student loan
debt. How bad is this pressure? 42% tell us that they feel totally overwhelmed by this
level of debt, twice the rate of boomers.
In fact, millennials tell us that the very first thing they would do, if given $10,000,
is pay down debt.
Different people react to pressure in different ways, but one way that we see this pressure
unfolding is that it is creating an either or mindset around saving.
61% of millennials consider themselves savers, but when we ask them Are you saving for retirement?
the answers look different. Half are saving and started saving at a median age of 24.
But the other half are not saving and don't anticipate doing so until the age 30.
Based upon what we know, saving early gives you the greatest opportunity to accumulate
assets for retirement. So, if there is one big message I can offer to this generation,
it is to establish savings with that first paycheck.
I'm not saying debt is not a priority because if you have debt, then you need to pay it
off. What I am saying is, that you can try to build a savings bucket at the same time.
Millennials are a great generation in their attitude - they have an optimistic, can do
approach to life. Two-thirds believe they will achieve a better standard of living than
their parents. 72% believe that they can control their financial future and 3 out of 4 say
if they lost their job today, they would get a new one that is comparable. This is the
right mindset because it suggests a lot of initiative and confidence.
Interestingly, this generation expresses a lack of confidence in the stock market as
a place for investing for retirement. More half (52%) say they are not confident in the
stock market for their retirement money, and the difference between men and women in this
regard is even more striking.
67% of millennial women say they lack confidence in the market as opposed to 38% of men. Whatever
the reason might be, history has shown that the stock market must be a material component
of a retirement investment portfolio.
The millennial generation is one that understands that their ability to make a financial future
happen for themselves rests solely on themselves. They are more responsible for their financial
future than any generation before them. They get this.
Our charge at Wells Fargo is to make sure that more people realize the sooner they start
saving, the better the outcome will be. When the time comes for their own retirement, it's
all about paying yourself first.