Most millennials in the U.S. are spending more on consumables such as groceries than they’re saving for retirement each month, new research finds.
In fact, according to an online survey of 1,000 millennials between the ages of 22 and 37 in the U.S. conducted by research firm Pollfish, 65% reported that they are spending more on groceries each month than they’re saving for retirement; 49% are spending more in restaurants; just more than one-quarter are spending more on coffee, alcohol, or online streaming services, such as Netflix; and 11% are devoting a greater share of their income to marijuana.
Overall, 37% of U.S. millennials surveyed reported that they’re not yet saving anything for retirement. However, the survey, which was commissioned by New Jersey-based fintech firm, LendEDU, also found that, the average amount among those who are saving for retirement each month is US$480.
“For millennials on the younger side, $480 a month for retirement is a great start when compounding interest is taken into account,” the report states.