A Look Into Millennials Financials & Retirement
November 16, 2021
November 16, 2021: Every generation knows the importance of saving enough money to comfortably live in their retirement years, whether that is from a pension plan, personal savings, or more likely, a combination of both. However, changing economic circumstances have made this endeavor particularly challenging for millennials.
The rising cost of living, competition to find a job with a good salary and even a delay in learning the important aspects of financial planning have led to a stressed-out generation. Millennials' retirement plans are not as hefty as preferred and near-constant disruptions in the economy make boosting savings to a healthy level near impossible.
Do Millennials Care About Retirement?
Millennials are anxious for a good reason. They want a comfortable retirement but are having trouble making that a reality. Some of the reason is due to lack of opportunity and higher amounts of debt from student loans, while some of it is because they were never taught how to save properly.
Fortunately, it is never too late to make a better, more fruitful plan. Millennials are taking charge of their finances through education and seeking out advice to make improvements both in the present and for their futures.
How Much Does the Average Millennial Have Saved for Retirement?
If a millennial has consistently saved each month toward retirement through a work plan and personal efforts for the past 15 years, he or she should have close to $262,000 in savings. The reality is much bleaker. Millennials are the first generation that has less wealth accumulated than the generations that came before them. Many have closer to $63,300 saved up in a retirement plan, and $5,000 or less in personal savings.
How Can Millennials Increase Their Retirement Plans?
The way to turn the situation around is through better education and financial planning. The first step is to start tracking all spending and making a budget. Once a person has a clear picture of their finances, they can start to set goals and figure out a game plan to make them happen.
If possible, millennials should aim to set aside at least 20% of their earnings into savings. It's also essential to take care of future concerns by purchasing the right insurance policies for health and financial protection.
A lucrative way to increase savings is to invest. Investments are a great way to boost income and bulk up a retirement fund. Diverse investments are best to lessen the risk of losing money.
An Annuity with a locked in rate is a great way to plan for retirement.
The current financial situation and future retirement prospects of millennials can turn around with some smart choices and by paying greater attention to every aspect of their financial life. The resources are available for anyone that desires to make a change and prepare for their future.
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