83% of teens have thought about saving for
retirement; yet only 60 percent understand what retirement
means
COLORADO
SPRINGS, Colo., April 17,
2024 /PRNewswire/ -- A new study of teens conducted
by Junior Achievement and MissionSquare Retirement's
Foundation reveals an optimistic, yet somewhat uninformed, view of
retirement by young adults ages 13-18. The data shows that 83
percent have already given thought to their retirement, and 78
percent believe they will be able to retire comfortably when the
time comes. However, only 60 percent of respondents accurately view
retirement as living on investments and savings after leaving work,
believing instead retirement could mean taking extended time off
for travel, study, illness, or taking care of family matters.
However, when asked to rank the best ways to save for
retirement, the surveyed teens ranked the following top to bottom:
saving as much as possible in a secure bank account (58%) instead
of using an investment strategy; followed by investing in stocks
and bonds with the help of a financial advisor (45%); investing in
stocks and bonds researched online (38%); buying real estate or
property (30%); and buying cryptocurrency/NFTs
(15%).
The research (fielded independently by Wakefield research) also
revealed that budgeting/saving for the future is teens' second
largest financial concern – behind paying for college and ahead of
buying clothing/entertainment. Yet, despite having a variety of
financial needs, two-thirds of teens (67%) believe that a good
retirement is achievable for most Americans. Twenty-eight percent
expect to be financially independent from their parents/caregivers
by age 20.
"This research shows retirement is more top-of-mind for teens
than one might think," said Junior Achievement CEO & President
Jack E. Kosakowski. "While young
people have given retirement planning some thought, it's apparent
they still need information on the best way to go about it."
"The fact that so many young adults in the early stages of their
careers are aware of a variety of investment strategies is
encouraging news," said Deanna
Santana, President, MissionSquare Foundation. Over the
course of our lifetimes, investment approaches, the economy, and
our priorities will change, so planning for life after work is an
ongoing necessity – for teens and adults alike."
While many teens express an interest in retirement planning,
according to the study, 43 percent of teens have given little or no
thought to retirement, 22 percent are not confident in their
ability to retire comfortably, and 51 percent are unsure when or if
they will be financially independent from their parents.
The full research results can be found here.
Survey Methodology:
The Junior Achievement Teens
& Retirement Survey was conducted by Wakefield
Research (www.wakefieldresearch.com) among 1,000
nationally representative US Teens ages 13-18, between February 28th and March 3rd, 2024, using
an email invitation and an online survey. Data was weighted to
ensure a reliable and accurate representation of U.S.
teens ages 13-18.
Results of any sample are subject to sampling variation. The
magnitude of the variation is measurable and is affected by the
number of interviews and the level of the percentages expressing
the results. For the interviews conducted in this particular study,
the chances are 95 in 100 that a survey result does not vary, plus
or minus, by more than 3.1 percentage points from the result that
would be obtained if interviews had been conducted with all persons
in the universe represented by the sample.
About Junior Achievement USA® (JA)
Junior Achievement
is the world's largest organization dedicated to giving young
people the knowledge and skills they need to own their economic
success, plan for their future, and make smart academic and
economic choices. JA learning experiences are delivered by
corporate and community volunteers and provide relevant, hands-on
experiences that give students from kindergarten through high
school knowledge and skills in financial literacy, work readiness,
and entrepreneurship. Additionally, Junior Achievement is expanding
its reach to 18-to-25-year-olds to provide young adults with
critical life skills, as well as to pre-K youth to ensure children
get a solid head start. Today, JA reaches more than 4.4 million
students per year in 102 markets across the United States as part of 12.5 million
students served by operations in more than 100 other countries
worldwide. Junior Achievement USA
is a member of JA Worldwide. For more information,
visit www.ja.org.
About MissionSquare Foundation.
The
MissionSquare Foundation, launched in 2022 through an initial
$20 million grant from
MissionSquare Retirement, seeks to make a meaningful impact
in our communities by focusing on the long-term well-being of
youth. Our core initiatives focus on civic mindedness, financial
capabilities, critical thinking and leadership development skills.
We believe that cultivating these lifelong skills in our next
generation support strong, sustainable and thriving communities.
For more information,
visit www.missionsq.org.
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SOURCE Junior Achievement USA