Report Shows Millennials Believe They’ll be Working Part-Time During Retirement
March 2, 2022
March 2, 2022: According to 2020 U.S. Census Bureau statistics, millennials make an average wage of $71,566 annually. While this is a reasonable income for spending and saving, most millennials worry they are not financially ready for retirement. They wonder about having more financial resources and needing to supplement with a part-time income. While an income can help in retirement, many people cannot work in their senior years, so it is essential to have a retirement strategy that eases this necessity.
Are Millennials on Track To Retire?
As many as 61% of older millennials don't believe full retirement is within their grasp. Most look at their current standard of living and don't see how they can maintain that in later life. With healthcare advancements, their longevity will likely increase in the coming years, so the goal of full retirement seems unattainable.
This concern is not unique to people of Generation Y, as baby boomers and Generation X also have reservations about retiring without plans for additional income. Overall, Gen Y is not as far behind with its objectives for retirement as some would think. Millennials recognize the need to prioritize saving and take steps in that direction.
How Much Does the Average Millennial Have Saved for Retirement?
Despite reports of millennials lacking financial preparation for the future, they are saving at a rate higher than previous generations. For older Gen Y’ers, their median savings rate is financially healthy 13%. As many as 15% of the younger set, ages 23 to 38, report that retirement is their primary savings goal. This is markedly higher than baby boomers when they were in this age group.
Millennials could make their money work better by tracking spending habits like generations before them. Curbing unnecessary purchases makes a big difference in saving, and it doesn't take big cutbacks to create a significant difference in the bottom line.
Why Do Millennials Need a Retirement Strategy?
The great news is that even the oldest persons in Generation Y still have plenty of time to get on track. It is essential to have a retirement strategy that includes a savings and investment plan and insurance products to guard assets.
While investment planning is critical to making your money work for you, insurance planning is necessary to ensure your hard-earned dollars are safe in the case of an unforeseen event. A holistic approach to retirement planning is beneficial, combining an array of products, such as 401ks, investment vehicles, insurance products and annuities, to get millennials on the right track toward retirement.
It is important to have a roadmap for finding a financial path through life. Setting goals is essential and choosing the best financial products to get there is the way to success.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.