Twentysomethings Fearful of Their Financial Future
Oct 14, 2011
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Financial reality is harsh for twentysomethings in the United States, with only 23% rating themselves totally independent, according to a first-ever survey by The PNC Financial Services Group.
Only 18% of 20-29 year-olds are confident they will have enough money to live comfortably upon retirement.
The survey sought insights into the financial mindset of twentysomethings within Generation Y, which is projected to outnumber all population segments by 2017.
The report finds twentysomethings' financial concerns start in their early adult years. Among 22 and 23-year-olds:
• only 26% feel optimistic about their personal financial future
• only 20% are confident about having money for a comfortable retirement
Only 14% of their older peers, at ages 28-29, agree on both points.
"The two keys to financial independence for 20-somethings in today's economy are: Don't panic now and plan for the future," said Todd Barnhart, senior vice president, PNC Bank. "At a young age, time is on your side and you can take full advantage if you manage your spending, start saving and chip away at any debt."
Financial Independence: In total, 23% of twentysomethings describe themselves as "totally financially independent." This percentage increases with age:
• 5% for ages 20-21
• 25% for ages 24-25
• 34% for ages 28-29
Sources of Income: 40% of all twentysomethings rely on two or more sources of income. This includes:
• part-time jobs: 57%
• full-time jobs: 28%
• plus help from mom and/or dad: 21% (48% for ages 20-21 twentysomethings rely on financial help from parents; but, even at ages 28-29, 7% of twentysomethings rely on it)
• 46% of twentysomethings rate their personal financial success as behind expectations – including 52% for those ages 28-29.
• 26% overall feel they are on-target
• 25% are ahead
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