The Disturbing Trend of Millennials NOT Saving for Retirement

The Disturbing Trend of M…

A recent CNBC story details how millennials differ from Baby Boomers when it comes to saving for retirement. According to the story, 41% of millennials have not started saving for retirement. At the same time, millennials have an average 20% less income, on average, as compared to Baby Boomers when they were the same age. It is this lack of disposable income that seems to keep millennials from saving for retirement. On the other end of the spectrum, many Baby Boomers are wondering if they really have saved enough for retirement and staring down the reality that they may have to work a few more years before retiring.

The ramifications of failing to save for retirement can be very severe, according to the Wells Fargo Investment Institute. Half of workers in America today expect that they will have to work until the age of 70 or older before retiring. Nonetheless, millennials spend an average of almost $3,000 per year on travel. This is the case even though 34% of millennials have student loan debt, with a median balance of almost $20,000. A full 75% of the millennials with student loan debt report that their debt is unmanageable.

On the other hand, even though 73% of Baby Boomers are presently investing in their retirement, they are likely to be working longer. This generation of adults, who are between the ages of 52 and 71, fears that the dollars that they saved will not stretch far enough, particularly as adults now live longer lives. As a result, they may stay invested in the stock market for a longer period of time than the previous generation, rather than moving to safer investments, such as bonds and CDs.

When you aren’t sure where to turn for help, Legacy Law Center is a valuable resource that you can access as needed. If you or a loved one needs help planning for your financial future, you should definitely contact an experienced Michigan elder law attorney at Legacy Law Center right away. Call Terrence Bertram at Legacy Law Center today and see what we can offer you and your family.

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