Younger Generations Views on Retirement – Will They Ever Plan?

Although as many as 1 in 3 Americans have absolutely zero funds saved towards their retirement years, it’s quite surprising to note that most of those who don’t have anything saved aren’t actually Millennials. In fact, more than 50% of the Baby Boomer generation has admitted that they haven’t bothered to save anything for retirement because they are relying solely on Social Security payments to provide their income when they stop working.

Millennials Starting to Save Earlier

While many Baby Boomers only started thinking about their retirement years and saving towards them in their late 20s or even early 30s, it’s surprising to note that the Millennials who are currently saving for retirement started to do so at around age 23 – far younger than any other generation so far. This means that they in fact will be able to take the most advantage possible of the compound interest that could accrue in their 20s.

More Employer Support Needed

A large number of Millennials realize how important retirement savings are. However, many of them are not being provided with the option of signing up for an employer-based retirement plan that sees companies contributing towards part of the premiums. Fewer companies than ever before are providing this perk to employees these days, making it more difficult than ever for Millennials to save enough for their golden years. The Center for American Progress noted, “Millennials’ future economic security depends on their ability to put away a portion of their current paychecks for retirement. Millennials know that saving for the future is important, but too few are able to do so.”

Planning to Work Longer

Although it used to be the norm for workers to retire anywhere from age 50 to 60, more people than ever are delaying retirement until their late 60s or even 70s because of financial constraints. It has been noted that significantly high levels of student debt remain one of the main reasons why Millennials will most likely need to work for longer than any other generation out there. Although many Millennials plan to retire from their main careers earlier than this, the difference between them and most of the Baby Boomers is that up to 50% of them intend to continue working part-time.

Different Spending Habits

Spending habits of Millennials also differ to those of previous generations in that they tend to spend more on entertainment and smaller retail purchases. However, they also tend to be more frugal with their finances than Baby Boomers in most cases in that they make fewer large purchases. Many Millennials have also opted out of owning properties because they prefer to have more options available to them.

Up to one-third of Millennials are concerned that they may run out of money after they retire. However, this worry and stress can often be averted if they are able to obtain sound financial advice and start saving as much as they can as early as possible.


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Is Mandatory Savings for Retirement Happening?

It’s highly likely that mandatory savings for retirement will soon be a real possibility in the U.S. for workers and their employers. This approach has successfully averted what could have been a potential retirement savings crisis in Australia, and this has resulted in California and a few other states taking a step in the same direction by making it compulsory for companies to offer retirement benefits to employees.

Concept Being Embraced by Millennials

Although most millennials – many of whom also have high levels of consumer debt – have started saving early for their retirement years, they seem to have made very little progress so far. However, more and more of them are embracing the concept of saving for retirement, with almost 70% of young adults surveyed by Natixis Global Asset Management agreeing that they should be required to invest in retirement accounts. It has also been noted that millennials are the most likely generation to agree with this sentiment.

Not much more than 50% of the baby boomer generation is in favor of mandatory individual savings plans, and it’s also been established during the Natixis survey that millennials are also the most likely to agree that it should be mandatory for all employers to provide a savings plan for their workers and make matching contributions to it.

Saving Sooner than Previous Generations

In addition to being required to save a portion of their money, almost 85% of millennials say that they want investment options that reflect their personal values. These can include a wider variety of social impact bonds or even a range of socially conscious mutual fund options, for instance.

It has been established that on average, millennials enrolled in their first retirement savings plans at the age of 23, Generation X signed up at around age 27 and baby boomers put off saving for their retirement years until approximately age 31 in most cases. This goes to show that millennials realize just how important it is for them to start planning for their retirement years as early as possible.

Trust in Social Security Declining

More than 80% of baby boomers have mentioned that they are relying on Social Security as their main source of income when they retire. However, only a little more than 50% of Millennials believe that this benefit will still be available to them by the time they reach retirement age.

Although Millennials realize how important it is to save for retirement, many of them are struggling to find the funds to do so. Many of them state that student debt is one of the main reasons why they cannot save, and this generation has also admitted that they struggle to obtain financial advice that is easy enough for them to understand.

Millennials who do obtain professional advice save an average of 10% more than those who don’t and almost 20% mentioned that they would save more if they could obtain financial advice. The fact that up to 50% of this generation don’t know how much they need to save to reach retirement goals clearly shows that more financial education than ever is needed.


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Charlie Roberts of DreamBridge Financial acquires his CERTIFIED FINANCIAL PLANNER™certification

Dream BridgeWhen he founded DreamBridge Financial, Charlie Roberts had a goal to provide a holistic approach to financial planning. With his 19 years in the business and certification in pension planning, he has certainly changed plenty of lives during his career. Recently, he received the

CERTIFIED FINANCIAL PLANNER™certification, a prestigious designation awarded by the Certified Financial Planner Board of Standards.

Although most people think that any financial planner they hire is certified, this is not at all the case. In order to attain the CFP® one must be rigorously tested and meet all of the requirements for certification and renewal in order to use the CFP® trademark and title. To pass the examination and become certified, an individual must demonstrate a high level of ethics, professionalism, and knowledge. These individuals are also held to strict standards for maintaining their designations, which means you can rest assured that Charlie Roberts will exercise the fiduciary care required by the CFP® board of standards when it comes to working with individuals and small businesses.

Charlie Roberts demonstrated the “Four Es”, which are characteristics set forth by the Certified Financial Planner Board of Standards: Education, Examination, Experience, and Ethics. Not only has he obtained the required education for this designation, but he has also passed a rigorous examination and proved his many years of experience in delivering financial planning services. With the designation, he is bound to uphold a Code of Ethics, which includes fairness, confidentiality, professionalism, and diligence.

About Charlie Roberts: Charlie is a native of Haverhill, MA and lives in Windham, New Hampshire with his wife, Melissa, and two children, Chase and Gianna. He has nearly 20 years’ experience in delivering quality financial planning advice, and he is also certified in pension planning by Bentley College. Charlie plays drums, works out, skis, and listens to music in his spare time, and he serves his community by volunteering with the youth baseball league and the Shephard’s Pantry food pantry, located in Windham.

About DreamBridge Financial: DreamBridge Financial serves individuals, small businesses, and mid-sized businesses both locally and across the country. The company first works to better understand the lives of their clients and then help provide the direction their clients need to achieve their dreams.

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How Moving Into a Retirement Facility Changes Your Mindset

Although many people choose to downsize and move into retirement villages when they reach the appropriate age because they aren’t able to keep up with home maintenance any longer, many others must do so due to chronic health conditions that prevent them taking care of themselves. Below are some things to consider as well as some advice to help make your transition as stress-free as possible.

  1. A Planned Transition

The term ‘retirement community’ can be used to describe various living situations. For example, while some of them only provide a single level of care such as independent or assisted living, others may provide various options that enable older persons to age in place from independent living right through to highly skilled nursing care – without having to relocate.

Continuing care retirement communities enable you to “buy in” to a care plan for the duration of your life, and this helps to reduce the risk of increased care costs as much as possible for you. When planning to relocate into one of these communities, it is crucial that as many of them as possible be visited personally to see if the facilities will be suitable when the time comes to move in. Aspects to peruse should include whether monthly fees apply and if so, what they cover and the types of assistance that are available.

When purchasing into these communities, large upfront fees will normally need to be paid. Because there are so many options in this regard, it’s recommended that a consultation with an elder law attorney be scheduled to determine how these fees, as well as ongoing costs will be covered over the long term.

  1. Admission in a Crisis or Emergency

Many elderly folk end up in long-term care facilities due to an unforeseen medical crisis. After being in hospital, patients will normally be provided with various options with regards to entering a long-term care facility. Any choices with regards to facilities should be made carefully, as it could be where you spend the rest of your life.

In most cases, health insurance options like Medicare Advantage or Medicare will help cover the cost of rehabilitation in long-term care facilities for the first few weeks. Afterwards though, you will need to know how the cost of any long-term care you require will be covered.

Either way, it’s crucial for everyone who is involved in the decision-making process to obtain professional advice from an attorney before entering into any contracts. It is also essential that you fully understand terms like “responsible party” and what it means with regards to financial obligations for adult children or anyone else who may have been granted power of attorney status.

Regardless of whether you are gradually transitioning from living independently to a retirement facility or an unexpected medical event forces you to relocate, all of this results in significant life changes that will not only affect you, but the lives of your loved ones as well. As a result, it is essential that you completely understand all of the consequences and options before signing any form of contract with a retirement facility.


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How Low Wage Workers Can Still Plan for Retirement

If you’re someone who works for low wages, then retirement may be the furthest thing from your mind. After all, making ends meet is sometimes difficult enough, so how are you supposed to save enough to retire? There are ways, and most of them are quite simple. Here are some tips and tricks for making sure you get to retire comfortably despite your salary.

How Prevalent Is the Problem?

A study conducted by the Associated Press-NORC Center for Public Affairs Research revealed that as many as 25% of people aged 50 and older in the workforce say they just won’t retire at all. Among those who earned lower-than-average salaries (less than $50,000 annually), that number climbed to 33%. Those who are affected the most include women, who are 80% more likely than men to be poor, and minorities. People find that their low wages make it difficult to put anything at all in the bank, especially if they’re already living in poverty.

Rule #1 – Saving Money Should Be Painful

Financial experts around the world will tell you that saving money should feel painful. You should notice that there’s money you aren’t spending, and if you don’t, then the fact is that you just aren’t saving enough. The goal is to save enough that it forces you to change your spending habits. Rather than going out for pizza every Friday night with the family, put that $50 in the bank and try your hand at homemade pizza dough instead. It’s little things like this that will make the difference in what you can save.

Rule #2 – You Spend More Than You Think

Get yourself a notebook and start keeping track of everything you spend your money on. Did you buy a newspaper this morning? How about a scone at lunch? Did you buy a pack of gum when you stopped to fuel up? Write it down, and keep track of it over the course of 30 days. At the end of the month, go back through your list with a highlighter and mark everything that is frivolous. Finally, add up what you’ve highlighted and write the sum at the bottom of the list. The number you see is the amount of money that could have gone into an IRA or 401(k) plan, if you have access to either. You would have had to forfeit a few luxuries, but that money could be earning you even more money right now.

Rule #3 – Make More Money

This one may seem a little bit over-the-top, but if you think about it, it’s true. You live in a developed country where people are always in need of services, and there are many ways to make some extra money. Pick up 10 hours of overtime each month, if you can. Offer to babysit neighborhood kids every other weekend for some extra cash. Put your hobbies to work, too. If you can make things, sell them. If you’re good at playing the piano, give lessons. Put anything above and beyond your normal salary into savings, and you’ll soon find that retirement isn’t impossible.

Earning low wages can make it difficult to devise a retirement plan, but it isn’t impossible. Remember that saving money isn’t supposed to be easy, so if you aren’t feeling the pinch, you aren’t saving enough. Track your spending and minimize it as much as you can, and find ways to earn more money that you can use exclusively for retirement.

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