Will Millennials EVER Retire
It’s not looking too good.
As millennials, most of us have grandparents who are surviving off of social security. They may also receive a pension if their spouse has passed away, or had saved extra money on the side for when they retired but the largest amount of their income is that social security. If your grandparents are anything like mine, they have taken trips, bought their grand kids gifts on gifts and pay off bills and debts with this money.
Back then, after high school (if they even went) our grandparents went straight to working and saving. Nowadays, 14% of private sector workers receive pensions, in comparison to 30% in the past. In this time, the age you could receive your full retirement. However, that age is now 67 and the longer you wait the more you receive.
The employment pool is much different then it used to be. Freelance workers such as Lyft drivers and Postmates employees are increasing in popularity while turnover rates at “traditional” jobs are rising.
The overall problem is the increase in life-expectancy. Advances in medicine and technology have played a large role in this change. However, people who retired at a younger age are still living off those social security benefits. The scare is, by the time we reach retirement age, the pool will be dry.
It is an ongoing roar around retirement eventually being a figment of our imaginations and everyone working up until death as well as the funds for social security running out.
What are the solutions? Millennials should definitely start savings and investments just in case this prediction does come true. Financial advisers suggest saving 70% of what you are used to making a year. So if you make $100,000 a year for retirement you would want 70-80k saved up per year. As scary as it may sound, it is possible and you would rather be safe than sorry. So stop the shopping sprees and weekly restaurant visits and save up!