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Millennials Fear Investing in the Stock Market
Posted September 13,2017 by CUNA Economics

Millennials stand to lose $3.46 million by the time they retire.  

A new LendEDU study shows amassing retirement funds is best accomplished by contributing to investment accounts like 401(k)s, mutual funds, individual brokerages, or IRAs.   

In fact, their analysis reveals consumers have a 98% chance to at minimum double their retirement savings via market investing.  

Unfortunately, millennials stand to lose $3.46 million by the time they retire at age 65, because they do not invest in the stock market.

“LendEDU’s research found that 41% of millennials are avoiding the stock market and are instead using savings accounts to save for retirement,” the LendEDU article notes.  

According to the study, 58.6% of millennials agreed “I would consider myself to be afraid of the stock market.”  

One reason this cohort stays out of the market is impact felt by the 2007-2008 Financial Crisis, cited as influential for 52.3% of survey participants.  

Of those who indicated they feared the stock market:  

  • 60.41% are afraid they will lose their money;
  • 21.16% avoid investing in stocks because they have not learned about it and do not know how to begin;
  • 14.33% have concerns about volatility of the market; and
  • 4.1% do not trust the financial system.

LendEDU notes it is important millennials understand the importance of compounding.  

“Over the long term, the compounding effect is higher when you are invested in the stock market, versus a traditional savings account,” according to Andrew Stolarz, a Financial Advisor at Morgan Stanley Wealth Management.



Millennial Money Attitudes Impactful

Savers and Non-savers Struggle with Financial Stress

Income Shocks Impact Retirement Funds for Most


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