Millennials enjoy easier access to the stock market and other investments than any previous generation. However, they’ve earned a reputation for starting their investment journey later than their parents, largely due to the 2008 financial crisis striking just as many Millennials reached adulthood.
In this guide, we’ll examine how Millennials invest, key Millennial investing statistics, and what this trend could mean for their financial futures.
About Millennial Investing
Millennials represent the largest generation of Americans alive today. Spanning ages 25-40, more than 72 million Millennials are shaping the market and economy with their distinct approach to investing, spending, and saving compared to older generations.
Millennials have embraced investing at rates equal to or exceeding Gen Xers and Baby Boomers. Many prioritize stability and retirement savings, especially after weathering the Great Recession and COVID-19 pandemic. Meanwhile, a challenging housing market has significantly influenced their asset allocation preferences.
Millennial Investing Statistics – Highlights
- Millennials favor traditional market approaches: 66% own stocks and 47% own mutual funds.
- Millennial investors embrace risk: 40% of investors under 40 hold crypto and 31% maintain options positions.
- Millennials prioritize retirement savings: On average, millennials begin saving for retirement at age 24 and 39% save at least 10% of their salary.
- Millennials rely on employer-sponsored retirement plans: 67% contribute to employer-sponsored retirement plans, and 53% participate in 401(k) plans.
- Millennials remain underinvested in homeownership. Only 48.6% of millennials own homes, compared to 69.1% of Gen Xers. 24.7% have abandoned homeownership aspirations entirely.
1. 88% of Millennials Invest Their Money
(Source: Clutch)
An impressive 88% of Millennials invest their money. This reflects both increased accessibility to investing platforms and the emphasis placed on investment education for this generation.
While Millennials experienced the 2008 financial crisis, they also witnessed the subsequent decade-long bull market. This exposure demonstrated the power of consistent, long-term investment strategies.
2. 66% of Millennial Investors Own Stocks
(Source: Motley Fool)
The stock market remains the primary investment vehicle — aside from homeownership — for Americans. Two-thirds of Millennials are directly invested in stocks. However, stock ownership among Millennials trails Gen Zers, 73% of whom own stocks.
3. 41% of Millennial Investors Hold Financial Stocks
(Source: Motley Fool)
Finance and tech stocks dominate Millennial portfolios. 41% of Millennial investors hold financial stocks, while another 41% own information technology stocks. Additionally, 39% invest in high-tech and emerging technology companies.
4. 66% of Millennial Investors Think Investing is Scary
(Source: Ally)
Despite widespread investment participation, investing still intimidates many Millennials. Two-thirds report finding investing scary, even with simplified platforms offered by brokerages, financial advisors, and robo-advisors.
5. Millennials Rank Stability Most Important When Choosing Stocks
(Source: Motley Fool)
When ranking stock selection factors on a scale of 1-9 (1 being most important), Millennials rated historical stability at 4.17 — the top priority. Investment researcher ratings and dividend payouts tied as secondary considerations, each averaging 4.37.
6. 75% of Millennials are Saving for Retirement
(Source: Bank of America)
Three-quarters of Millennials allocate salary portions for retirement, though not all funds are invested immediately. Millennials began investing at a median age of 24, compared to 30 for Gen Xers. This head start could enable earlier or more comfortable retirement than many Americans currently approaching retirement age.
7. 39% of Millennials Save at Least 10% of Their Salary for Retirement
(Source: Transamerica Center)
Nearly two-fifths of Millennials dedicate 10% or more of their salary to retirement savings. This substantial commitment positions many Millennials well for achieving their retirement objectives. 24% already have $100,000 or more saved for retirement.
8. 67% of Millennials Use Employer-Sponsored Retirement Plans
(Source: Bank of America, Clutch)
More than two-thirds of Millennials contribute to employer-sponsored retirement plans. Specifically, 53% participate in 401(k) plans, while only 29% invest in traditional and Roth IRAs.
This pattern suggests Millennials eagerly capitalize on employer-sponsored plans, many offering financial incentives for retirement savings. However, these plans may provide more limited investment options compared to self-directed accounts.
9. 48.6% of Millennials are Homeowners
(Source: Apartment List)
Nearly half of Millennials own homes, significantly trailing older generations — 69.1% of Gen Xers and 78.5% of Baby Boomers are homeowners.
Affordability presents the primary barrier to Millennial homeownership. 24.7% of Millennials have completely abandoned homeownership aspirations.
10. 38% of Millennials Invest in Crypto
(Source: Investopedia)
38% of Millennials hold cryptocurrency in their portfolios. This proportion could grow substantially as cryptocurrency investing becomes more accessible, though recent crypto market volatility may influence future Millennial sentiment toward digital currencies.
Millennials significantly outpace other generations in crypto adoption. Only 28% of Gen Xers and 23% of Gen Zers invest in cryptocurrency.
11. 30% of Millennials Invest in Options
(Source: Motley Fool)
Despite options being considered aggressive investments, nearly one-third of Millennials maintain options positions. This likely reflects the expansion of commission-free options trading, encouraging broader investor participation. Gen Zers show even higher options adoption at 39%.
12. 20% of Millennials Use Robo-advisors
(Source: Investopedia)
Despite rapid robo-advisor growth, only 20% of Millennials utilize these services. Most Millennials prefer human financial advisors. Among robo-advisor users, Vanguard Personal Advisory Service and Schwab Intelligent Portfolios lead in popularity.
13. 33% of Millennials Invest in ESG Stocks
(Source: CNBC)
Millennials drove the growth of Environmental, Social, and Governance (ESG) investing. Today, roughly one-third invest in ESG-focused funds or ESG-conscious investments. This exceeds all other generations: 19% of Gen Zers and 16% of Gen Xers invest in ESG funds.
14. 47% of Millennials Own Mutual Funds
(Source: Motley Fool)
Nearly half of millennials own mutual funds, while only 23% own exchange-traded funds (ETFs). This preference surprises given ETFs’ accessibility and low fees. However, many employer-sponsored retirement plans exclusively offer mutual fund investments, which may explain this disparity.
15. 54% of Millennials are Optimistic about the Future
(Source: Nationwide Financial)
Despite experiencing both the Great Recession and COVID-19 pandemic, most Millennial investors remain optimistic about the future. The majority also believe they have effective strategies to safeguard their finances during potential future crises.
