As older generations increasingly reach retirement age, millennials are becoming more and more important to the investment industry. Some millennials are reaching their peak earnings years, allowing them to save more and invest to meet their own financial goals.
While there are some similarities between millennials and older generations, millennials also have their own unique preferences when it comes to investing their hard-earned savings. Here’s some of the latest data on millennials and how they invest.
Millennial investing statistics
- 33 percent of millennials prefer real estate investments when it comes to money they won’t need for more than a decade, according to a 2022 Bankrate survey on financial security. The stock market was the second highest preference at 23 percent.
- Older generations are more likely to cite volatility as a reason for not investing in the stock market, whereas just 29 percent of millennials said the potential for volatility made them cautious about investing in stocks.
- 22 percent of older millennials (ages 33-41) said they were intimidated by the stock market, the Bankrate survey found.
- Millennials are also more likely to think that the stock market is rigged against individual investors compared to baby boomers and Generation X.
- More than half (54 percent) of millennials say their first investing experience came through a 401(k) plan, according to a recent Schwab survey of 401(k) plan participants.
- Millennials think they’ll need $1.8 million to retire, according to the Schwab study.
- 75 percent of millennials say their personal values guide their investment decisions, according to the 2022 Schwab Modern Wealth Survey.
Millennial investing trends
In a 2022 Bankrate survey, one-third of millennials said they’d choose real estate as their preferred investment for money they won’t need for at least 10 years, with the stock market as their second choice at about 23 percent.
Older generations such as baby boomers and Generation X tend…
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