Synopsis: The next generation is ready to change the economics of their own future. The way they live and retire will not resemble the Baby Boomer retirement model. A major departure from traditional thinking is overflowing the tributaries of thought on money, materialism and retirement. Watch the interview with syndicated financial columnist, popular platform speaker and talk show host, Steve Savant.
Content: The Millennial generation sometimes appears conflicted. They voted for Obama, but would rather pay the penalty and not participate in Obamacare. Many Millennials love the socialism of Bernie Sanders, but are as materialistic as their Baby Boomer parents. The Millennial generation believes in pro-government programs, but they also believe they will receive little to nothing from Social Security. The Millennial generation is just now discovering that they are going to be saddled with the 20 trillion dollar burden their parents racked up over the last generation and are coming to the conclusion that they are going into retirement all on their own.
In the 2015 LIMRA Secure Retirement Institute Study, 70% of Millennials don’t know what funding vehicle to use for retirement. Most just follow the same retirement methods of their Baby Boomer parents. 40% of Millennials save only 10% of their income. And that’s not necessarily targeted for retirement. Keep in mind with Millennial tuition debt exceeding one trillion, most can’t secure a mortgage with that kind of debt, much less think about a retirement plan 30 to 40 years from now. And that’s because they’re living in the now and the present presents its own monetary problems. The study goes on to say, “15% of Millennials think winning the lottery is a viable retirement strategy.” “Another 11% are hoping for monetary gifts to see them through their later years.” Schwab Retirement Plan Services Survey of 1,000 401(k) participants revealed that Millennials were less concerned with saving enough money for retirement as any other demographic population. But they were concerned about monthly expenses, credit card and student loan debt.
It is entirely conceivable that Millennials will be retiring at minimum age 70 and living well into their nineties. If the government doesn’t modify their tax and spending ways, the Millennial generation will be the most taxed generation in American history.