Cash is king for millennials with the group shunning other assets like stocks and bonds, survey shows

Cash is king for millennials with the group shunning other assets like stocks and bonds, survey shows
Millennials are allocating a third of their savings to cash, according to a new survey by Schroders.Elise Amendola/AP
  • Millennials are keeping their savings in cash rather than investing, a new survey has shown.
  • They've parked a third of their retirement funds in cash, rather than stocks or bonds.

Millennials are keeping a third of their savings in cash and shunning investing, according to a new survey.

Asset management firm Schroders polled a group of workers aged between 27 and 42 and found that on average they'd allocated 33% of their retirement funds to cash – compared to putting 31% in stocks and 16% in bonds.

Both of those asset classes plummeted in price last year as the Federal Reserve's aggressive interest-rate hikes made it more attractive for people to park their funds in savings accounts.

But the millennials who've pivoted to cash are now missing out on a broad stock-market rally, with the tech-heavy Nasdaq Composite jumping 16% and the benchmark S&P 500 up 7% in 2023 as investors position for when the central bank halts its interest-rate increases.

Millennial workers also get more advice about investing from their families than from websites, publications, or financial advisors, according to the Schroders' survey.


They believe they'll need around $1.3 million worth of savings to live comfortably after they've stopped working – but just 29% think they'll have stashed more than $1 million by the time they retire.

Schroders also surveyed older Americans and found that they've positioned their portfolios more boldly than the younger generation.

Workers aged over 45 allocate 31% of their savings to stocks, 29% to cash, and 16% to bonds, according to the investment firm.

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