For the generation born between 1982-2004 the road to financial security has been a rocky one. Often referred to as the Unluckiest Generation, these statistics illustrate where they stand now and how the financial landscape looks for them currently.
1. 52% of Millennials often or always invest in sustainable funds
Sustainable investing (sometimes referred to as Responsible Investing – RI), is a school of investment that considers environmental, social and ethical issues in order to generate returns whilst also making a positive social impact. It also turns out that this generation, now 'coming of age', appears to favour this kind of investment.
In a 2017 report by Schroders, they reported that Millennials are more clued-up on sustainable investments funds than Generation X and Baby Boomers. They are twice as likely to identify all three descriptions of sustainable investments as Baby Boomers.
They also found that in Europe, the least informed population is the UK, with 14% not knowing what a 'sustainable investment fund' is.
2. Global Millennial spending power is set to overtake Generation X in 2020
Millennials are about to overtake Generation X as the biggest global spending power, in terms of a generation, by 2020. Millennials are set to earn an average of $1.4 trillion annually by this date.
As Generation X begin to reach retirement age in the next fifteen to twenty years, their earning and spending power will also begin to significantly decline.
3. European Millennials love their tech
A survey by Vocalink found that 71% of Italian millennials say they couldn’t live without smartphones, with 10% using mobile payment for everyday eating and drinking, dining and going out, and 11% for entertainment such as going to the cinema, concerts and sports events.
Furthermore, millennials are not put off by further advances in technology assisting them with their finances and mobile payments, with 42% of British and German millennials agreeing that they would use eye scans to verify payments.
4. Millennials see business leaders having a more positive impact than religious or political leaders
Perhaps linked to the decline of organized religion in Europe, and the disillusionment created by the 2008 crash, the millennial generation are no longer looking towards more traditional moral leaders to make a positive impact.
Instead, they are looking toward business to take the next step towards an ethical business model and to initiate positive social change. They want businesses to take a much more aggressive stance towards making a positive impact.
5. Less than 30% of millennial wealth is in stocks
Again, as the generation that came of age in the post 2008-climate, millennials are slower to invest their wealth in stocks. More skeptical of a market they have already seen collapse, a survey by Deloitte found they prefer physical assets as well as 'cash and demand simple products'.
In the long run, banks will need to find a way to compensate for the risk-averse behaviour of this generation.
6. 1 in 3 British millennials may never own their own home
A report by the Resolution Foundation has found that 1 in 3 millennials may never own their own home, and so, as millennials reach childbearing age, we are facing a generation of children being raised in insecure, short-term, private rented accommodation.
They are evidently not alone in Europe, as new statistics from Italy show that a whopping 67% of Italians between 18-34 still live at home with their parents.
7. Millennials are the first modern generation to be worse off than their parents
A recent analysis of the Luxembourg Income Study found that incomes for those aged 25-29 have stagnated since the seventies and eighties, compared to the incomes of older people, which have risen.
For example, in Italy, income for the 25-29 age group grew by 19% less than the national average between 1986 and 2010, meaning that in real terms younger people are no better off than they were in 1986.
The same was true in the UK, where income growth for those aged 25-29 grew by 2% less than the national average between 1979 and 2010.
8. 29.8% millennials believe that income discrimination is causing the most harm in their country
Indicating a strong sense of social consciousness, a survey by Sharper Survey found that nearly 30% of millennials believed that income discrimination was causing the most harm in their country.
Income discrimination can take the form of not being offered a rental agreement or mortgage by a bank because they do not approve or recognize your source of income. It can even affect you being able to take out a loan or credit card. For a generation that widely participates in the gig economy, this can have serious ramifications.
9. Of the millennials who invest, 73% do so for their future retirement
Despite being roundly criticized as the generation that is not thinking adequately about the future, 73% of those millennials who are investing are doing so in order to supplement their current pension or are growing pensions savings for future retirement.
Better education about investment decisions for the future might therefore be a good investment for millennials who are thinking of beginning their investment journey.
10. Millennials are not saving enough for retirement
According to a survey by Schroders, millennials are saving a marginally lower proportion for their retirement than Generation X and Baby Boomers.
This may indicate a naivety as to how much they will actually need when they retire, or an awareness that they will probably have to work until much later in life than current generations and so will be earning for a much longer period of time.