Millennials and Retirement
It seems that Millennials have been getting a bad reputation, and they don’t deserve it. The common view of the next generation of young adults is that they are attached to their phones or mobile devices and have no idea about the real value of money. Many articles mention that Millennials are not saving for the future and, in fact, could be facing a bleak financial future.
New studies show that the kids have the world at their fingertips. They’re making excellent investments and have strategies in place that mean they will be better off in the future. Not only are they saving, they’re also make wise trades in the stock market. They have access to advice and statistics, they make informed decisions, and they’re making money.
The Bankrate.com survey of consumers between the ages of 18 and 29 revealed some very interesting facts - 62% percent of Millennials are saving more than 5% of their pay for retirement, emergencies or for other financial goals.
Saving a percentage of their pay shows remarkable maturity, especially since the media has portrayed this demographic as the kind of people who buy what they want without any plan for the future and no concern for mounting debt.
According to a report from the American Institute of CPAs and the Ad Council, the biggest motivation for saving amongst Millennials (40%) is for an emergency. Of those surveyed, 27% reported saving for a house.
If these trends are anything to go by, it seems that perhaps Millennials are way ahead of the curve and will be just fine. They have adjusted to a new world and are taking care of themselves, paying down their debt and preparing for a solid future. It seems that Boomers could take a page out of the Millennials books and actually learn a thing or two.
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