Young Adults More Bullish About Changing the World Than Securing Their Financial Future
Young Adults More Bullish About Changing the World Than Securing Their Financial Future: A new report from the TIAA Institute and Business for Impact’s AgingWell Hub at Georgetown University found that more than half of young adults feel that they have a role in solving global problems like climate change, social injustice and political division. However, when it comes to their finances, young adults are more pessimistic. More than 40% live paycheck-to-paycheck, and only 33% say they could handle an unexpected major expense.
Key Takeaways
- If your employer offers a 401(k) match, contribute enough to capture the full match—it's essentially free money, and missing out on even 5-10 years of matched contributions creates a compounding gap that's difficult to recover
- Build an emergency fund to cover unexpected expenses; 67% of young adults aged 24-35 cannot handle a major unexpected expense, leaving them financially vulnerable
- Meet with a financial advisor through your retirement plan sponsor or workplace benefits program rather than relying on social media for financial guidance—plan sponsors increasingly offer digital and in-person advisory services specifically for employees
- Understand the difference between retirement plan types (traditional 401(k) vs. Roth 401(k)) and what guaranteed income actually means; 70% of young adults incorrectly believe their 401(k) provides a guaranteed minimum income at retirement
- If you have a partner or spouse, include them in financial planning conversations—women tend to have better longevity awareness than men, making joint planning critical for retirement security
Young Adults More Bullish About Changing the World Than Securing Their Financial Future: A new report from the TIAA Institute and Business for Impact’s AgingWell Hub at Georgetown University found that more than half of young adults feel that they have a role in solving global problems like climate change, social injustice and political division. However, when it comes to their finances, young adults are more pessimistic. More than 40% live paycheck-to-paycheck, and only 33% say they could handle an unexpected major expense.
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