Community Corner

Study: 20-Somethings, Money Woes

Only 18 percent of young adults expect to retire comfortably, according to survey by PNC Financial Services Group.

As tough economic times continue to hit the nation, 20-somethings are finding it especially hard to stay financially stable and are already worried about retirement, according to a new survey conducted by the PNC Financial Services Group.

The study surveyed 20- to 29-year-old U.S. residents—an age group that makes up 18.8 percent of Hermosa Beach's population, according to last year’s data.

And many of these Hermosa residents began their adult lives during the so-called 2008 Great Recession, noted the PNC study.

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The study, which was released Sept. 6, found that 18 percent of 20- to 29-year-old adults surveyed are "confident they will have enough money when they are ready to retire."

About 26 percent of the younger 20-somethings (age 20 to 22) feel "optimistic" about their personal financial future, and 20 percent are confident about having enough money for a comfortable retirement, according to the study.

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But only 14 percent of their older peers (at ages 28 and 29) agree on both points. 

The study also found that only about 5 percent of those younger 20-somethings considered themselves to be financially independent. About 25 percent of 24- and 25-year-olds said they're financially independent, and 34 percent of 28- and 29-year-olds reported being independent.

About 21 percent of all the young adults surveyed reported that they still receive financial assistance from Mom and Dad.

"The two keys to financial independence for 20-somethings in today's economy are: Don't panic now, and plan for the future," said Todd Barnhart, PNC Bank senior vice president, in a statement following the study’s release. "At a young age, time is on your side and you can take full advantage if you manage your spending, start saving and chip away at any debt."

Do you have advice to share for Hermosa Beach residents fresh out of college and worrying about finances?


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