51% of Millennials Say Financial Independence is More Important When Retiring Than Age
Written by
Tina Nazerian
Edited by
Daria Uhlig
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What comes to mind when you hear the word “retirement?” Perhaps the concept of retiring in your 60s. That’s understandable, given that that’s the decade of life when people, on average, tend to retire in the United States.
But ask a millennial that question, and you might get a different response. According to a recent survey commissioned by Iralogix, a fintech platform that provides IRA solutions, millennials are thinking differently about retirement.
Financial Independence
In the survey, 51% of millennials said retirement is defined not by age 65 but by financial independence, where they can indulge their lifestyles without relying on traditional employment, according to a statement announcing the survey results.
When it comes to retiring at age 65 and leaving the workforce for good, 24% said it’s a goal they’re trying to achieve. But some millennials don’t consider retirement a clean break from working — 16% responded that retirement is not necessarily an exit from the workforce, but a time of greater flexibility in their lives.
Retirement Concerns
As for when they plan to retire, 47% of millennials said they will retire as soon as they can afford it.
While the survey found that the majority of millennials have a relatively good handle on their consumer debt, with 55% indicating that mortgages aside, their debt falls between $0 and $20,000, some millennials aren’t financially independent yet. A 2023 study by Insuranks, for instance, found that 19% of millennials were residing with their parents. Additionally, a 2023 GOBankingRates survey revealed that 62% of those ages 25 to 34 and 67% of those ages 35 to 44 think that they’ll run out of money before retirement age.
Preparation
Whether they want to leave the workforce partially or entirely, millennials can take steps to achieve their retirement dreams, such as contributing to retirement accounts sooner rather than later and diversifying their investments. Other ways they can prepare include opting for the right level of investment risk and making sure they don’t succumb to lifestyle creep.
By acting strategically, millennials can shape their retirements on their own terms.
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