Young Workers Treat Retirement Accounts More like Savings Accounts
December 3, 2018
Saving enough to ensure a financially secure retirement can be difficult, and while most of us know that we should save early and often, young workers are showing that there’s a distinct difference between knowing and doing.
According to a new study conducted by E-Trade, almost two-thirds (59 percent) of workers ages 18 to 34 have taken an early withdrawal from their retirement accounts. The study also shows that such withdrawals have become much more common in the last few years. A similar study conducted in 2015 showed that only 31 percent of young workers had made early withdrawals.
Despite this, nearly all (89 percent) of those surveyed felt confident that they would be able to save enough for retirement. However, this confidence may stem from young workers underestimating how much they will need. The young investors surveyed estimated that they will only need between $250,000 and $999,999 for a successful retirement. Workers nearer to retirement feel they should have between $1 million and $2 million saved.