Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Reaching retirement age is an event that likely seems far off for many Millennials. What that age is exactly depends on each individual’s desires, savings, occupations, etc.
It typically helps to have a significant nest egg, which, in conjunction with Social Security (assuming it will still be around in some form), makes a comfortable retirement possible. What research from Ramsey Solutions has shown is that 1/3rd of Millennials have exactly $0 saved for retirement.
Having to rely exclusively on Social Security is troublesome for those currently doing it (the average Social Security check is $1538/month) and the problem will likely get worse in the future. Inflation is currently beating the CoL increase and a benefit reduction seems possible within the next two decades.
Wages across the board have not kept up with rising prices in nearly every facet of the U.S. economy. This eats further into Millennials’ capability to save for something which could be 3-4 decades away. It is hardly surprising people are choosing to prioritize a roof over their head, gas in their car and food in their stomach over their long-term future.
What could be considered even more troublesome is the fact that approximately 20% of Millennials state they do not believe they will ever be able to retire.
1 in 5 members of an age group never planning to retire has strong negative connotations for the economy at large. Those not planning on retiring likely do not plan on saving for any kind of retirement as well. There are not many jobs the human body can effectively perform once it hits 70 years old.
Savings rates do go up significantly for higher age brackets, but the lack of it now from a group of tens of millions of people could result in a larger share of retired individuals trying to live off of meager assets. Though some experts do make an argument against saving for retirement entirely. This could lead to a permanent “semi-retired” class of individuals aged 67+. Social Security and a low-paying part time job might provide enough for people to scrape by, though (most likely) with nowhere near the quality of life of even a middle class individual today.
