March Topic of the Month: The Importance of Saving for Retirement as a Millennial
It’s no secret to anyone that it is important to save for retirement, and most people want to know what they should save in order to live out a comfortable retirement. This is especially important for millennials (the generation born between 1982 and 2004) to think about, though, due to changes in the work world and economic environment. For example, in a 2019 survey conducted by Milliman, over 25% of Millennials do not have access to an employer-sponsored retirement plan and 30% have jobs at which they have not met the eligibility requirements to partake in the employer-sponsored retirement plan. This means that over 50% of Millennials do not have anyone contributing to their retirement aside from themselves and, in addition, that they will not contribute to their retirement without seeking out an account per their own volition.
In addition to this hurdle, the changing economic climate means that Millennials will need to save more money than earlier generations should they want to retire at 65, the common retirement age. Olivia Mitchell, the executive director of Wharton’s Pension Research Council at the University of Pennsylvania, claims that millennials need to save 40% of their income for the next 30 years if they want to live of half of their final salary during retirement.
Despite the need to save more than ever before, many Millennials are nowhere near these numbers due to external debt, precarious jobs, lack of knowledge about retirement accounts, and a variety of other reasons. However, it is extremely important for Millennials to strategize for their future savings by speaking with a financial advisor. While planning seems intimidating, it becomes easier the earlier that you start. Whether you are a Millennial or not, we encourage you to call Orsinger Investment Group, Inc. at (724) 588-9067 to schedule an appointment to discuss your retirement savings plans.