15 May How Are Millennials Planning For Retirement?
Millennials are thinking of retirement more in terms of reaching a particular financial goal than reaching a certain age, according to a recent report from Merrill Edge.
According to Merrill Edge’s report, 41% of people between the age of 18 and 34 are planning on retiring when they reach a set financial milestone, where older generations think of retirement as achieving a certain age or being unable to work due to health concerns.
The survey–which encompassed 1000 affluent Americans with investable assets of $250,000 or more–indicated a shift in the economic landscape and how it is affecting the psychology of today’s working class. In addition, 21% of millennials plan on pursuing their interests, continuing their education, or starting a business rather than just simply ceasing to work.
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Aaron Levine, head of Merrill Edge in the United States, sees it as a good sign. “It’s refreshing to see the mindset around retirement evolve, particularly a strong optimism and a goal-oriented approach from younger generations,” stated Levine. “This focus is a great start, but one of the keys to a successful retirement is to ensure savings are prioritized early and often. Year over year, we continue to see today’s non-retirees struggle with the impact short-term spending has on their long-term financial future.”
Millennials’ shifting opinions on retirement is a reflection of the shifting, mercurial economic times we are living in, becoming increasingly difficult to envision, let alone planning for retirement.
According to Ken Dychtwald, CEO of Age Wave, “As we see in the latest Merrill Edge Report, retirement planning requires a new mentality – ‘set it and forget it’ is a thing of the past. As millennials are envisioning living very long lives, this study reveals the new priorities they have for work, leisure, success and money as they are coming to realize that everything they do today financially speaking can impact the lives they’re hoping to live in retirement.”
Beginning to think about retirement? Talk to a Financial Advisor in the Sunshine Coast, to find out your options.