Latest News by Industry
MINNEAPOLIS--(BUSINESS WIRE)--Apr 5, 2023--
Despite facing significant economic headwinds in their coming-of-age years, including the Dot-Com Crash, the Great Recession, and the Covid-19 pandemic, millennials – defined as investors ages 27 to 42 – have a solid financial foundation. Six out of 10 (61%) within this age group feel good about their finances, according to new research from Ameriprise Financial. Among millennials who work with a financial professional, three-quarters (76%) feel good about where they stand financially.
But that’s not to say they’re carefree. Nine out of 10 (90%) of those surveyed by Ameriprise say they are concerned about inflation, and eight out of 10 (80%) are worried about interest rates.
They’re also in a busy season of life, often juggling careers, families and other responsibilities. More than half of millennials (56%) report feeling the pressure of balancing multiple financial priorities, which is markedly higher than older generations. Only 38% of Gen Xers and 23% of boomers said managing competing priorities is difficult.
Despite the complexities, most millennials think they are faring well relative to their age cohort. Nearly six in 10 (58%) say they believe they are doing better financially compared to their peers.
The study also uncovered:
“Most millennials are in their 30s and 40s, and their lives – including their finances – are busier and more complex than ever,” said Marcy Keckler, Senior Vice President of Financial Advice Strategy at Ameriprise. “They’ve lived through major events in history and weathered the ups and downs of various economic cycles, which has informed their worldview and given them confidence that they will be able to tackle whatever the future holds.”
But Keckler added a word of caution, noting that those who expect to receive financial assistance from family should have a Plan B in case the gifts don’t come through or match their expectations in terms of size or timing. “Just as curve balls have been thrown at millennials in the past, the future will no doubt be full of surprises. The best thing investors of any age can do is to take control of what they can, and work toward their immediate and long-term goals with the help of a professional who can advise them along the way.”
What keeps investors in their 30s and 40s up at night?
Despite their overall confidence, the Ameriprise study shows millennials may be losing sleep as they work to balance competing priorities for their time and money. Among their top concerns:
On a positive note, the study showed millennials are taking the responsibility to save for retirement seriously. Their generation started retirement investing earlier than older generations at a median age of 25 (compared to age 28 for Gen X and 30 for boomers), and one-third (36%) of millennials are already receiving passive income from sources including dividends, rental income, and royalties.
“Millennials today are in the intense yet rewarding period in life when it’s common to be trying to make progress toward multiple important priorities all at once,” added Keckler. “Rather than letting their circumstances overwhelm them, millennials should know that no matter where they are along their individual financial journeys, there are ways they can feel more confident and in control.”
Steps investors can take to further bolster their finances
The Ameriprise research unveils three steps millennials can take to capitalize on their success so far and continue making progress toward their goals:
“Now is the time for millennials to crystalize their long-term financial goals,” said Keckler. “Instead of relying on well-meaning friends, take the next milestone step of consulting a seasoned financial advisor for qualified advice specific to your unique circumstances.”
About the survey
The 2023 research was created by Ameriprise Financial Inc. and conducted online by Artemis Strategy Group from January 19 to February 14, 2023 among 3,518 Americans ages 27–77. Millennial respondents have $25,000 or more in investable assets, and Gen X and boomer respondents have $100,000 or more. The sample is weighted on region and by generation on age, gender, race/ethnicity, assets, and income based on the Federal Reserve 2021 Survey of Household Economics and Decisionmaking (SHED). To ensure sufficient response sizes for additional analysis, Ameriprise oversampled investors who identify as millennials. For further information and details about the study, including verification of data that may not be published as part of this report, please contact Ameriprise Financial or go to ameriprise.com/millennials.
About Artemis Strategy Group
Artemis Strategy Group ( www.Artemissg.com ) is a communications strategy research firm specializing in brand positioning, thought leadership and policy issues.
About Ameriprise Financial
At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive investment advice, asset management and insurance capabilities and a nationwide network of approximately 10,000 financial advisors 1, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs.
Artemis Strategy Group is not affiliated with Ameriprise Financial, Inc.
Ameriprise Financial and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Ameriprise Financial Planning Services are optional, offered separately, and priced according to the complexity of your case and your financial advisor’s practice fee schedule. Your fees and financial advisor may be subject to change.
Financial planning is generally appropriate if you have financial goals, sufficient assets and income to address your financial goals, and are willing to pay an investment advisory fee for recommendations to help you achieve those goals. Please review the Ameriprise Financial Planning Client Disclosure Brochure or, for a consolidated advisory relationship, the Ameriprise Managed Accounts and Financial Planning Service Disclosure Brochure, for a full description of services offered, including fees and expenses.
Investment Advisory products and services are made available through Ameriprise Financial Services, LLC a registered investment advisor.
Ameriprise Financial Services, LLC. Member FINRA and SIPC.
© 2023 Ameriprise Financial, Inc. All rights reserved.
______________________
1 Ameriprise Financial Q4 2022 Earnings Release.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230405005481/en/
CONTACT: Stephanie Siegle, Media Relations
612.671.2593
stephanie.siegle@ampf.comAllison Harries, Media Relations
612-678-7035
allison.h.harries@ampf.com
KEYWORD: MINNESOTA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES CONSUMER MILLENNIALS FINANCE ASSET MANAGEMENT BANKING ACCOUNTING
SOURCE: Ameriprise Financial
Copyright Business Wire 2023.
PUB: 04/05/2023 06:01 AM/DISC: 04/05/2023 06:01 AM
http://www.businesswire.com/news/home/20230405005481/en