In the past, millennials have received quite a bit of flack for most of their habits and methods when it comes to being a “successful adult.” Planning and saving for retirement definitely falls in the category of things that have been questionable in regards to millennials.
That’s why most people would find it shocking to know that, in regard to retirement planning, this generation is making a major change and rewriting their future. Most millennials are now actually better prepared for retirement than their parents. According to one study, millennials are now setting the bar high when it comes to their savings and their retirement plans.
Millennials aren’t just planning better than their parents, but actually better than every other age group out there.
This scrutinized generation is taking obstacles, such as student loans and other debt, and choosing not to allow those factors to hold them back from being readily prepared for their future. Just over half of millennials have set goals for their retirement planning and roughly 83% of them say they’re headed in the right direction in meeting those goals. These percentages far exceed that of the number of Gen X and Baby Boomers that are setting and meeting goals for their retirement.
Experts recommend having at least 10 years of savings accumulated before actual retirement.
Millennials are crushing these numbers by allowing themselves anywhere between 30 and 35 years of savings to accrue while most Baby Boomers only have around 3 and a half years before they head into retirement. Millennials are starting earlier than those who have gone before them and are opening major savings doors through giving themselves this amount of time.
This kind of savings allows for them to have cushion when it comes to their debt as well. What was once a factor that was considered to be holding the young generation back is now propelling them forward to be active in their retirement planning and savings.
The influence of social media and digital connection is a major part of what’s keeping millennials so ahead of the game.
The connectivity millenials have through social media is allowing them to have a vast spectrum of knowledge around the retirement planning industry and, in turn, is giving the industry better access to these young consumers. The retirement planning industry is using the digital age to connect to the consumer in a way that is different than ever before. It is causing millennials to step into a state of better preparedness when it comes to planning and saving for their retirement.
While the concept is still new to the industry, they are well aware of the benefits of using the internet to reach the consumer. They are now using it to their advantage, which is benefiting everyone.
Millennials are taking control of their futures.
While there are definitely factors that make saving for retirement difficult for millennials, they seem to be handling those roadblocks the right way. They’re not allowing their debt to hold them back from ensuring that they have as comfortable of a future as possible.
Through setting goals that they are determined to reach, millennials are allowing ample time for saving for their future. Also, by using their advanced digital connection as an ally, they are now leading other generations in the retirement planning charge.