There is a big problem in the world of finances today: Millennials and retirement savings.
Or lack of savings that is…
If Millennials do have savings… it’s often a small amount.
If you’re one of those Millennials with no retirement savings.. We understand the problems you’re going through.
Helping you get through those problems is why we’re here. We help show people the easy ways to save for retirement (even when times are tough).
No matter what the circumstances are.. There are always steps you can take to start saving today.
But before we go any further… it’s important to know how you got in this situation in the first place.
Here are some reasons why you might be a millennial with no retirement savings.
How We Got Here: Millennials And Retirement Savings
This isn’t exactly a new issue for Millennials. In 2014, 47 percent of Millennials spent at least half of their paycheck just to pay off debt on a regular basis.
Debt from mortgages, credit cards, and student loans continue to add up for Millennials today.
Student loan debt in the United States is at the one trillion dollar mark. Another problem for many Millennials is the lack of decent paying jobs and a higher cost of living.
So people take out thousands of dollars in loans, and never find a job that can help them pay back the loans.
This can leave people under employed (or unemployed) and living with their parents or grandparents.
And you want to talk about saving for retirement?
By The Numbers: Millennials And Retirement Savings
The Millennial Generation now makes up the largest group of consumers in the United States. This is the first time they passed the Baby Boomer Generation. Eventually, their ability to save (or not save) will soon have a big impact on the U.S economy.
Here is a break down on their current saving habits:
- Over half of all Millennials have less than $1,000 in savings.
- Less than 20 percent have savings between $1,000 and $5,000 in savings.
- Less than 8 percent have savings between $5,000 and $10,000 in savings.
- Less than 7 percent have savings of more than $20,000 in savings.
On the low to high end of income:
- Over half of all Millennials earning $25,000 to $49,000 have less that $1,000 in savings.
- Half of all Millennials with incomes over $150,000 have savings of more than $20,000.
Here is how it looks from the low and high end by gender:
- Almost 60 percent of all female millennials have less than $1,000 in savings.
- Almost half of all millennial males have less than $1,000 dollars in savings.
- A little over one-fifth of millennial males have more than $20,000 in savings.
- A little over one-tenth of millennial females have more than $20,000 in savings.
The numbers are not much different between older and younger millennials:
- Almost 60 percent of 18 to 24 year-old adults have less than $1,000 in savings .
- Almost half of 25 to 34 year-old adults have less than $1,000 in savings.
- Almost 12 percent of 18 to 24 year-old adults have savings of more than $20,000 in savings.
- About 20 percent of 25-34 year-old adults have savings of more than $20,000 in savings.
Despite all the numbers above, Millennials do have the ability to save their money better.
So if you’re one of those Millennials, we’re here to help you start saving today.
Take these tips and use them for more than your retirement savings. Start saving for your future house, wedding or children.
Or start saving for that trip to Europe you never took. Or just keep an extra stash of cash for emergencies.
Here are some tips you can use to start saving for retirement TODAY:
If you are able to automate spending for things like rent and student loans, take advantage of it. This will help you make all of your payments on time and reduce the amount of debt you owe.
If your employer offers a 401(k) program, start it today! Have it automatically deduct 15% of your paycheck (or more if you can). Many employers match up to a certain amount of the money you put in. That’s free money that you didn’t put in yourself.
Every dollar you save today will add up over time. Retirement is closer than you think.
Be Patient With Investments
It’s not surprising that many Millennials don’t trust the stock market. We don’t blame you. You grew up during the Great Recession.
But try to be patient with the investments you do make. If you know an investment can make you money, don’t run for the hills the first moment the stock goes down.
You should think of each investment as a long term investment. Wait as long as possible to cash out. Give the seed time to grow. This will increase your retirement funds.
Make Saving For Retirement A Priority
We know it’s not easy to save for retirement when you have debt to pay off. But starting to save a small amount each week will help you over time.
The current economy and job market are not in your favor. There is some talk of the minimum wage going up. Employers might start to offer student loan assistance in the future. But you can’t wait for change to start saving for retirement.
If saving for retirement isn’t your top priority, then make it your second priority. Or make it your third.
Having a system set up now will prevent you from being 50 years old without any money saved for retirement.
Just because the other Millennials aren’t saving for retirement doesn’t mean you have to do the same.
Start your retirement savings today!
Are you having retirement saving issues too?
Or is your portfolio already killing it?
Tell us about it in the comment section!