A new survey of American millennials found 58% of respondents feeling that their tight financial state is forcing them to choose between homeownership and retirement security.
The Harris Poll survey from Nationwide Retirement Institute found more than one-third (35%) of millennials citing rising housing costs as the biggest obstacle to their retirement readiness, and 46% believing mortgage or home equity loans posed the biggest threat to achieving a secure retirement. Furthermore, of the housing dilemma is immediate and measurable: 60% of millennials said they adjusted their retirement plans at least some since the start of this year in response to rising housing costs.
As for the retirement planning, half (50%) of the respondents said they opened retirement accounts, such as 401(K)s or IRAs, and slightly less than one-quarter (22%) opened brokerage accounts to begin planning for retirement. Still, there is great worry on long their savings will last in retirement – 22% of respondents said they are concerned their savings won’t last more than 14 years and 10% reported their retirement savings are already dwindling.
“Millennials are navigating their prime earning years in a financial landscape marked by volatile markets, high interest rates and shifting economic norms,” said Juan José Pérez, president of Nationwide Corporate Solutions. “These challenges are not only impacting their ability to build long-term wealth but also key life milestones like homeownership,”
The survey was conducted from Aug. 19-Sept. 2 and included input from 667 millennials (age 29-44).
Well written and from a perspective I never considered.