T. Rowe Price's Millennial Retirement Saving and Spending Study involved interviews with over 3,000 workers from various generations to analyze the financial behaviors of millennials saving in 401(k) plans. The findings reveal that millennials demonstrate financial awareness, with an average contribution rate of 8% and a high level of comfort regarding their financial future, as well as a desire for guidance in managing spending and debt. Additionally, millennials show a preference for automatic enrollment in retirement plans and generally maintain spending within their means.

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T. Rowe Price initiated the Millennial Retirement Saving and Spending Study, a quantitative study, conducted independently by Brightwork Partners, LLC. Interviewees included 3,026 workers currently contributing to a 401(k) plan or eligible to contribute with a balance of at least $1,000 consisting of 1,505 Millennials, 1,007 Gen Xers, and 514 age
50+ workers; 1,027 adults who have retired in the past 5 years and have a Rollover IRA or balance remaining in a 401(k) plan; and 255 Millennials who are eligible but not currently saving in a 401(k) plan. Interviewing was conducted in February and March of 2015. Findings in the samples are subject to a margin of error of just under 3%.
Challenging stereotypes: Working millennials are redefining the digital generation
T. Rowe Price’s latest thought leadership research, the Millennial Retirement Saving and Spending Study, offers revealing—and
often surprising—information about the financial mind-sets and behaviors of working millennials who are saving in a 401(k) plan.
Exhibit Financial Awareness
 On average, they contribute 8% of their
pay to a 401(k) plan (the same rate as
Gen X workers)
 74% are more comfortable saving and
investing extra money than spending it
 40% of Millennials report they have
increased their contribution rate to their
401(k) in the last 12 months
Envision a Bright Financial Future
 78% are somewhat/very comfortable that they’re
on track to meet their financial goals
 73% say they are better off financially than their
parents at the same age
Seek Advice and Guidance
 38% have used some kind of advisor, and 11%
of those have used a robo-advisor
 58% indicate that they would benefit from
someone helping them with their spending
and debt management
Embrace Auto-Services
 Of Millennials automatically enrolled in
a 401(k) plan, 27% say they would not
opt out of auto-enrollment until 10%
(average opt-out rate was 6%)
 47% wish they had been enrolled at a
higher rate
 While most were automatically
enrolled at 3% of pay, on average
they would not opt-out unless the rate
exceeded 6%
Engaged, but Not Entitled
 82% report that their spending is well within the
limits of what they can afford
 75% track expenses carefully and have a written
or online spending budget