Millennials are nothing like previous generations. A lot of young people are not planning to own a house and start a family. Look around: everyone rents, everyone swipes left and right on Tinder.
The latest report from the National Institute on Retirement Security indicates that more than 66% of Millennials don’t save for retirement. And taking into account the information about the pension fund crisis, it appears that Millennials might never retire.
So, why don’t Millennials save money?
Most young people have financial struggles. At this point, on average, a graduate has $36.000 debt. Let alone, 1.1 million Americans struggling with student loans that have topped six figures.
Without relevant professional experience, fresh graduates are not always able to get a high-paying job. No wonder, they don’t have any savings for the future.
A different way of thinking
The financial burden is not the only thing that stops Millennials from thinking about their future. Young people these days drastically change from Generation X (their parents). They are not used to waiting; they want to enjoy their lives now, not in forty years.
Some Millennials would prefer to buy a new car, tech device, or branded T-shirt instead of saving for their own house.
What’s the solution?
In order to retire, young people should put an effort to pay off their student loans as soon as possible. Saving for the future doesn’t make sense without a plan. That’s why Millennials should consider investing in real estate. In case they don’t have enough savings once they are old, they can always give their apartment or a house for rent.
Millennials should also compare equity release rates since it can be another option to forget about the full-time job and financial problems in older age.
Check how much money you need to retire in your country: