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Johannesburg – Millennials are reinventing the idea of long-term saving, but they are still struggling to find a balance between meeting their current needs and those of the future, said an expert.
According to a study by Bank of America, millennials are the first generation to plan for the long-term in order to achieve financial freedom. The report revealed that in the US 63% of millennials are saving to live their desired lifestyle, compared to 45% of baby boomers and Generation X. More than half (55%) of Baby boomers and GenXers are saving for retirement, while only 37% of millennials are focused on retirement.
Ntombi Tisani, head of marketing at Old Mutual personal finance said similar trends can be observed in South Africa. Research by Old Mutual shows millennials are not necessarily contributing to retirement savings, but they are making small changes to their daily spending habits and are increasing informal savings. This includes cutting back on luxuries like holidays, shows, clothing and alcoholic beverages.
