Plan To Retire Early? Millennials Are.

A study that was performed by TD Ameritrade in 2018, a majority of Millennials (Age 23-39) expect to retire by average age 56, seven years sooner than the current average of 63. 1,500 Millennials were involved in this study. Since the 1980's the retirement age has gradually increased. Due to advances in medicine, life expectancy, Social Security cuts (or cancellation), the projected retirement age is predicted to increase to 66.

Over the last few years, Millennials have begun to make smarter choices with money such as, investing, saving, and thinking more clearly about major purchases. However, Millennials have an overwhelming collective amount of student loan debt of about $1,000,000,000,000. Millennials also reported having credit card debt, car loans, and pay significantly higher amounts for housing than by their parents. Of the 1,500 studied, 53% expect to become a millionaire at some point in their life.

This generation expects to be financially independent by age 25, when the majority will enter the work force with their chosen career. According to J.J. Kinahan, chief strategist at TD Ameritrade, “One of the greatest investments young people can make in themselves is to start putting money away in their 20s. Because of the power of compounding, even with ups and downs along the way, those who start early can end up with more in the end.” On average, Millennials begin saving for retirement at age 36, and 28% do not plan to retire at all.

According to, "Thirty-eight percent of Millennials are saving for retirement. Seventy percent characterize themselves as savers, up from 62% in 2016. Ninety-four percent say they are saving towards a specific goal, with the top two being a vacation (43%) and an emergency fund (39%)."

A report from Acorn's Money Matters Report, 2,000 Millennials were surveyed, and 41% stated that they spent more money on coffee than investing in their retirement last year.

I highly encourage all of you to go to Dave Ramsey's Retirement and Investment Calculator and see where you could financially in the future by saving for retirement!

Also, here are some tips from, for pursuing financial goals!

Pursuing Financial Goals

Kinahan offers some financial tips for Millennials who may need to look at additional financial strategies to pursue their goals:

  • Don’t delay! Waiting to save for retirement can be costly. Giving investments the longest possible time to grow attempts to take advantage of the power of compounding, even with the downturns that take place along the way.

  • Know your numbers. Find out how much more you can contribute each year to pursue your retirement goal. For 401(k)s in 2018, employees can contribute a max of $18,500 (up from prior years), likely not a realistic level for most people at this age, but certainly a great goal.

  • Tack on an IRA. Grads who snag a job with a 401(k) retirement plan and employer match should consider themselves lucky. But a 401(k) is only one piece of the puzzle. Young adults should also consider opening an IRA and making regular contributions.

  • Negotiate salary. An un-negotiated salary is a missed opportunity. You could be leaving money on the table simply by not asking. Of those polled, only half negotiated their salaries or compensation at their most recent job.

  • Put windfalls to work. Try not to get carried away during tax season and bonus season. Windfalls, even small ones, can be an extra splash of cash for your retirement accounts. If you can, think about “spending some, saving some.”

  • Get smart. Only three in 10 Millennials (32 percent) said they’re very knowledgeable about investing. Free investing education resources are available that fit every learning style. Tune in to the TD Ameritrade Network if you’re a visual learner, or try some online immersive courses to learn about investing.

Though this retirement expectation may seem outrageous, it is not far-fetched for those determined with a plan. I agree with J.J. Kinahan when he talks about the power of compound interest. If Millennials want to retire early, they must get rid of, and keep rid of, debt, and start putting money into a Roth IRA as early as possible. Only those with a map will reach their destination quickly!

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