Millennials’ Financial Habits May Surprise You — Here’s How Much They Have Saved for Retirement

millennial woman eating avocado toast saving her money

Millennials get a bad rap for their financial habits — they’ve been accused of spending too much on avocado toast and not sufficiently saving for the future. But perhaps those judgments are unwarranted.

A survey of 1,000 millennials, ages 23 to 38, conducted by LendEDU found that most millennials are actively saving for retirement — and most have a pretty healthy amount saved.

Also See: Most Millennials Think They Will Be Wealthier Than Their Parents, Survey Finds

Over Half of Millennials Are Saving for Retirement

According to the survey, 58% of millennials are contributing to their retirement savings via an investment account such as a 401(k) or an individual retirement account. The likelihood that a millennial is contributing to a retirement account increases with income, with 34% of those making $49,999 or less contributing, 64% of those making $50,000 to $99,999 contributing and 77% of those making $100,000 or more contributing. The likelihood also increases with age — 41% of those ages 23 to 27 are contributing, as are 65% of those ages 33 to 38.

Plan Ahead: Here’s What Social Security Will Look Like by the Time Millennials Retire

The Average Millennial Has $26,475 in Retirement Savings

Regardless of income, the average millennial has around $26,475 saved for retirement, with low-income earners having just slightly less saved, and high-income earners having just slightly more saved. What does have an effect on the amount saved for retirement is age: Young millennials ages 23 to 27 have an average of $7,796 saved. The middle bracket of millennials ages 28 to 32 averages $21,275 in savings. Older millennials, ages 33 to 38, have an average of nearly $40,000 saved.

Check Out: Yes, You Can Save $1M for Retirement With a $50K Salary — Here’s How

Most Millennials Are Not Investing Outside of a Retirement Account

The survey also asked millennials if they are investing outside of a 401(k) or IRA, and found that only 30% are investing through a personal brokerage or investment account. High-income earners are much more likely to invest than low-income earners — only 15% of millennials earning $49,999 or less are investing in the market, but 48% of those earning $100,000 or more are.

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Millennials Who Are Investing Favor Financial Stocks

Of those millennials who are investing in the market, those surveyed said that they are investing most heavily in financial stock, with 29% investing in this sector. The next most common sectors to invest in among millennials are technology and healthcare, with 18% and 11% of millennials investing in those sectors, respectively.

Keep reading to find out seven things millennials should erase from their budgets.

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