Millennials Saving & Investing Up Since Pandemic Struck

Financial Wellness EngagementFour in ten Millennials savings and investing routines experienced a positive shift during the pandemic, the study, cited in BenefitsPro, found.  The study revealed that three key metrics are at their highest level in the past decade.  Thus demonstrating a positive mood among respondents about finances and investing, with a noteworthy increase among Millennials:

  • More than half of U.S. households feel no or little “anxiety about their financial situation as they look to their future.”
  • Nationally, nearly 30 percent of households feel “very” or “somewhat” experienced with investing.
  • More than a third of households feel “very” or “somewhat” comfortable in “accepting
    volatility in the hope of getting a higher return.”

Millennials’ sentiment on feeling experienced as investors increased 11% in just one year!  They also felt most comfortable with investment risk of all the generations this year.  Previously, Millennials were the least comfortable.

As financial confidence strengthens, so too does interest in investing.  Respondents to the Hearts & Wallets survey reported experiencing increased joy in thinking about money.  Millennials are now recognizing the value in paying for advice, and expressed interest in fund managers.  Both interest in fund managers and desire to save more rose by 6% year-over-year.  This was the highest of the year-over-year increases.  In addition, three in 10 households said Covid-19 changed their attitudes about saving and investing, especially among younger generations.

As noted in BenefitsPro, “The marked shift in saving and investing attitudes point to a financial awakening for millennials and Gen Z.  For millennials, this group includes 13 million households with $1.8 trillion in assets.  Millennials with pandemic-changed attitudes are more likely than the U.S. national population to be interested in packaged products.  Millennials are now more concerned with missing-out on investment growth.  Millennials saving and investing have more favorable views of international investments.”  Millennials were also the most likely to be interested in the managers behind their funds (62%).

Despite the positive mood, financial concerns linger. More than a third of households are highly concerned about inflation and potential tax hikes.  Inflation was among the top three concerns nationally, up 11% from 2020.  Worries about the U.S. deficit and future tax increases is up 4%.

To be sure, saving and investing attitudes appear to be moving in a positive direction, particularly among younger generations.  While this is good news, employers have an important role to play in making sure this momentum continues.  Providing financial wellness and other pathways to fiscal well-being, such as auto features in your retirement plan, can help workers of all generations.  The momentum toward improving their financial footing in America continues.  A welcome change to help navigate the ongoing uncertain economic and market environments.

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