Small Changes Can Greatly Improve Millennials’ Financial Outlook
Millennial employees who make small changes in their financial habits can increase their retirement contributions by 12% according to a study released by Financial Finesse.
Modest changes, such as having an emergency fund in place, tracking expenses and paying down credit card debt, will improve their retirement outlook.
In addition to the 12% increase in retirement contributions, the study also found these changes will increase lifetime retirement savings by 27%.
Other key findings include:
- Millennials will face challenges planning for their retirement if they continue to put a higher priority on short term goals. The study pointed out that Millennials have two advantages over the older generations in improving their financial outlook: time and earlier access to financial wellness programs. The findings said employers should encourage their Millennial employees to participate in financial wellness programs to increase their retirement preparedness.
- All generations are having increasing difficulty paying off their debt. Baby Boomers are particularly vulnerable. Only 58% (down from 64%) plan to pay off their debt, and they have seen the biggest increase in late fees (up to 15% from 11%).
On the positive side, people are becoming more proactive in managing their finances. Employees in all generations are “running the numbers” to see if they are going to make key financial goals.
The study assessed the financial situation of over 35,000 employees.