September 27, 2018

JA USA Survey Studies Teen Knowledge of Retirement Planning

Nearly two-thirds (64 percent) of U.S. teens have concerns about their parents’ preparedness for retirement, while at the same time lacking knowledge about how to plan for their own retirement. This was the result of a recent JA USA and AIG survey on American teens’ awareness of retirement concepts. The survey also showed that sixty-nine percent of 13- to 18-year-olds say they know little or nothing about retirement planning. More than a third (34 percent) of the respondents believe they’ll will retire at age 60 or younger; however, one-third believe they’ll need less than $5,000 in savings in order to retire. On average, the teens plan to start saving for retirement at age 29.

Quick facts from the survey:

  • 64% are concerned about their parents' preparedness for retirement

  • 69% say they know little or nothing about financial planning

  • 93% say it is important to have a financial plan for retirement

  • 72% say they would likely consult a financial advisor about planning for retirement

  • 34% expect to retire at age 60 or younger

  • 30% agreed $5000 or less was enough money to retire

  • The average age teens report they will begin saving for retirement at is 29

  • 46% are not confident they know how to plan for retirement

  • Nearly all (92-95%) students agreed that a personal finance course would be valuable to them