Millennials at Risk of Not Retiring
The millennials, sometimes known as the “me me me” generation, have faced an array of financial hardships since they have been alive. They have experienced the economic crash of 2008 and a skyrocketing national debt here in America.
But a new study from Financial Finesse indicates these youngsters may face an even bigger problem: no retirement.
According to the survey, only 17% of millennials say they are on track to retire with 80% of their income to live on. 29% of the group said they have used a retirement calculator to project their future plans, down from 32% in the first half of 2012.
The concern is the millennials are unlikely to have government-provided retirement funding as they grow older. Thus, they need to establish a savings program on their own as soon as possible. This generation faces higher tax rates, inflation and hefty health care costs in the coming years. An insufficient retirement account may force them to work far longer than they desire.
Women and low-income employees also showed a high risk of not retiring securely. Only 17% of the women surveyed were confident in their retirement plans, which is much lower than their male counterparts. Only 10% of low income employees felt the same confidence, down from 11% in 2012.
Liz Davidson, CEO of Financial Finesse, said, “This generation is used to getting answers and information instantly–they have the ability to manage their personal finances on a whim from their cell phones or computers and they’ve become accustomed to dealing with their finances this way. The proactivity that planning for retirement requires is counterintuitive to their nature in a lot of ways.”
The time to start planning for retirement is now. No matter how old you are or how much money you make, you need to find a way to save for the future. You will turn 65 before you know it.