Millennials don’t share the confidence of baby boomers and Gen Xers who
believe they’ll be financially better off than their parents, according
study commissioned by Prudential Financial, Inc. (NYSE:
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Prudential's 80-Year-Old Millennial study, conducted in partnership with Kantar Consulting, combined expert interviews, a moderated online bulletin board and a quantitative survey of more than 1,000 millennials to learn how the largest generation in the U.S. workforce today envisions progress over the next 50 years. Share and compare your views at 80yearoldmillennial.pru. (Photo: Business Wire)
Nearly nine in 10 millennials (88 percent) say people now in their 20s
and 30s will need to work much longer than previous generations did to
retire with the same level of financial security. Even if they do work
for a longer period, 79 percent believe that by the time they reach 80
years old, comfortable retirement will be a thing of the past. At least
70 percent say that’s because it’s impossible to save as much money each
year as prescribed by current retirement planning tools.
Prudential’s 80-Year-Old Millennial study, conducted in
partnership with Kantar Consulting, combined expert interviews, a
moderated online bulletin board and a quantitative survey of more than
1,000 millennials to learn how the largest generation in the U.S.
workforce today envisions progress over the next 50 years. The study
focused on millennials’ feelings about workplace trends, economic
opportunity, technological advances and maintaining health.
“Millennials are at an important crossroads, having experienced some of
the most significant economic booms in history, but also the Great
Recession,” said Vishal Jain, Prudential’s Workplace Solutions Group
financial wellness officer. “It’s incumbent on financial services
companies—and any company that seeks to meet the financial
and personal wellness needs of these constituents—to understand the
changes that are driving behaviors within this generation.”
Prudential continues to capture data on how millennials envision
progress over the next 50 years. Share and compare your views at 80yearoldmillennial.pru.
The Evolving Workplace
Millennials are at the center of changes being driven by technology and
the employee/employer social contract. Many entered the workforce during
the economic downturn and struggled to launch their careers. They have
approached work with a spirit of experimentation over stability. The old
assumptions about education, work and retirement no longer apply for
themselves and their children.
Almost two-thirds of respondents agree that in the future “traditional
full-time employment will largely disappear and freelancers will make
up 75 percent or more of the U.S. workforce.” Those surveyed agreed
with Prudential’s “Gig
Workers in America: Profiles, Mindsets and Financial Wellness”
report, which found the emerging gig economy provides creative ways to
work, but creates instability regarding financial wellness.
Most millennials (72 percent) report being nervous that employers will
stop providing healthcare and retirement benefits, such as 401(k)
programs, with women (76 percent) and parents (76 percent) reporting
slightly higher-than-average nervousness. One-third say they are
“extremely” nervous that employer-provided healthcare and retirement
benefits will disappear.
Nearly two-thirds of millennials are extremely or somewhat nervous
that people will need to learn to work with and adapt to robots and
artificial intelligence to do their jobs.
Future of Finance
Millennials are slowly finding their economic footing. They are entering
the next phase in their lives and increasingly focused on career and
family. They are planning a financial future in an economy that has
rebounded from the Great Recession—but see a world that feels more
volatile, uncertain and complex than ever before.
68 percent of millennials think it is somewhat or highly likely that
investments will become completely automated, based on personal data
and preferences. Though 58 percent prefer receiving financial advice
from a licensed professional.
Most millennials (63 percent) reported being extremely/somewhat
nervous that they are heading in a direction in which wealth will be
calculated based on one’s personal data, digital possessions, and
other forms of value—not just money and “traditional investments.” And
71 percent say it’s likely that the next generation will live in a
world without cash.
77 percent of millennials think it’s likely that there will be a
global recession in their lifetime that will be more disruptive than
the Great Recession.
As millennials age, they carry with them the “tech first” mentality to
solving life’s problems both big and small. Having benefited from a
proliferation of technology solutions—from apps to websites to
wearables—millennials expect the world to continue making life easier
and more connected.
Millennials are beginning to recognize that, even though they were the
original digital natives, 75 percent say “people will struggle to
learn and adapt to the digital tools and technologies that generations
that came after them take for granted.”
68 percent fully expect the next generation to develop emotional
relationships with the robots that serve them. Nevertheless,
millennials believe that society will increasingly place value on
personal face-to-face interactions even as the world becomes more
The rise of quantified and preventive health allows millennials more
transparency and control over their bodies, but fully integrated
holistic healthcare solutions and services for the body, mind, and
spirit remain niche. The multiple benefits of a holistic approach to
health and wellness, including a link to financial wellness, are only
now being understood by mainstream healthcare institutions.
Instead of having to make a self-diagnosis and then schedule an
appointment, millennials will expect healthcare providers to keep pace
with other services that reduce consumers’ responsibilities by using
technology, such as implanted chips or wearable devices to diagnose
potential ailments and genomics to personalize medicine. While a
majority believe medical visits will be virtual, over 40 percent of
millennials still believe that medical visits will have to take place
77 percent expect healthcare to become primarily focused on preventive
and predictive services to keep people healthy, rather than reacting
to treatment when people get sick.
73 percent say it is likely that their possessions will be digitally
connected and synced—leading to personalized services by the time they
retire. They also believe that insuring data will be as important as
insuring life by this point.
“Since I was in middle school I have been told that by the time I reach
65, Social Security will be depleted for our use. It’s something that I
have continued to hear even into this most recent election. I’ve just
accepted it as truth.” – Tiarra A., age 26, Kentucky.
“The issue is not the inability to plan, it is the inability to save.
Houses are expensive, kids are expensive, and currently I don’t even
have enough money to send one kid to just one semester of college.
Saving money for retirement just isn’t a luxury that anyone has.” – Ben
T., age 25, Illinois.
“A successful work life would be with a company that understands
work-life balance and employee reinvestment. I’d feel great working for
a company that is willing to invest in my education/future and give me
the ability to spend time with my family.” – Shawn W., age 26, New York.
About the 80-Year-Old Millennial study
Partnering with the Futures Practice at Kantar Consulting, a leading
consultancy focused on growth, Prudential enlisted futurists in tech,
transportation, education, entrepreneurship, and aging. With their
input, we compiled questions for the study. The millennials polled
helped us understand and anticipate the needs and challenges they may
face in 50 years. The online quantitative survey involved 1,002
millennials and was fielded from May 22 to June 1, 2017. Respondents
demographics: Ages 21–38, 50% Male, 50% Female. Non-Hispanic white, 56%;
Hispanic, 22%; Non-Hispanic black, 13%; and 9% Other. 65% with Household
Income of $40,000+. Geographic dispersion: Rural, 23%; Suburban, 45%;
and Urban, 32%.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with
more than $1 trillion of assets under management as of December 31,
2017, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees are committed to
helping individual and institutional customers grow and protect their
wealth through a variety of products and services, including life
insurance, annuities, retirement-related services, mutual funds and
investment management. In the U.S., Prudential’s iconic Rock symbol has
stood for strength, stability, expertise and innovation for more than a
century. For more information, please visit news.prudential.com.
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