Americans just starting out are approaching their life goals in different ways than older Americans, and they're prioritizing differently, too—with retirement unsurprisingly just a distant blip on the screen.
That's according to the 23rd annual Allstate/National Journal Heartland Monitor Poll, which looked at the responses from young people aged 18–24 and respondents 25–29 who consider themselves still to be just starting out—then compared their answers with those of older adults and those in the 25–29 age group who consider themselves to be past the starting-out stage.
Just 10 percent of young people are investing in retirement, putting such goals as paying off debt—like student loans and credit cards—considerably higher on the list.
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Thirty-two percent of young people said that was the best use of money left over at the end of the month, while 21 percent said putting aside an emergency fund was best, 15 percent said saving ahead for major purchases, and 14 percent said saving for a home.
The only thing that came in after retirement savings was putting away money for children's college education; a scant 7 percent said that was the best use for any leftover funds.
On the other hand, 26 percent of older Americans said, when asked what they wish they had done better, that saving for retirement was at the top of the list. All those other things got lumped together as a secondary priority.
Young people think they know what they're doing, too, with 46 percent saying that they have a plan and they're following it for such things as saving for retirement, investing and managing debt. Thirty-six percent say they know what to do but can't afford to do it, while 15 percent say they don't know what they should be doing.
Only 28 percent of older respondents, on the other hand, said they knew what they were doing when they first started out.
And younger people are more optimistic about retirement, too, despite debt woes and a tougher time in general starting out. Fifty-four percent said they'd be able to retire before age 65, while among the older group just 41 percent who hadn't yet retired said they'd be able to do that.
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