June 28, 2013 (PLANSPONSOR.com) - On average, members of Gen Z expect to
be living on their own by age 21, according to the 2nd Annual Generation Z
Survey, released by TD Ameritrade Holding Corporation.
63% say they feel welcome to move back in with their parents in the future if
they cannot afford to swing it on their own. This young generation appears to
have no qualms about moving back home, either. In fact, many see some benefits
to living with their parents. Eighty-one percent of those currently living at
home after college or planning to do so say it allows them to save money, while
nearly half (48%) say it allows them to be selective about employment
parents, fear not. Gen Z does not plan to live at home forever. When asked at
what age they would be embarrassed to still be living at home, Gen Z, on
average, said age 28. Nearly nine out of 10 (88%) would be embarrassed to still
be living at home at 30, and half (49%) would be embarrassed to still be living
at home at age 25.
only do they hope to be independent and living on their own by age 28, but it
is also the age members of Gen Z, on average, plan to start saving for
retirement. Thirty-nine percent of those in Gen Z worry they will not be able
to count on Social Security or other government retirement programs when they
get older (31% in 2012), and 31% of those in Gen Z are concerned about not
being able to put money away for retirement.
it comes to the life path they plan to take, those in Gen Z expect major
milestones will occur in this order:
Start a job.
Buy a car.
Pay off student debt.
Buy a home.
Start saving for retirement.
“It’s interesting to
see that this young generation plans to take a fairly traditional path to their
futures, however; the one piece that looks out of place is saving for
retirement,” says Carrie Braxdale, managing director, investor services TD
Ameritrade, Inc. “Time and time again we hear Baby Boomers say they wish they
would have started saving earlier, and the hope is that we can spread the word
to Gen Z to start saving as soon as they start working, rather than waiting
until they reach other milestones. Even a little bit can go a long way, and the
power of compounding interest is an opportunity they do not want to miss out