ARE YOU CONTEMPLATING RETIREMENT?
The time to start planning for retirement is now.
A staggering 10,000 Baby Boomers will turn 65 today, and about 10,000 more will cross that threshold every day for the next 14 years (Pew Research Center). For many that’s us, our parents or our grandparents. Are those millions of people financially prepared to retire?
Baby Boomers (born 1945-1966) aren’t really known as being great savers, but rather rely heavily on pensions and generous company retirement fund matching benefits.
Generation X (born 1967-1982) are a bit skeptical that they will receive Social Security and increased retirement plan benefits. They have the burdens of school debt, high housing costs and a lack of adequate workplace benefits that take a bite out of their savings accounts.
Generation Y (born 1983-1994) have resorted to living on credit cards and cashing out savings due to student debt, higher unemployment and the overriding attitude of “why save if you can spend it now.”
Generation Z, aka Millennials (born 1995-2012) may become the best savers as they have seen their parents and grandparents move through the ups and downs of several recessions. However, many are working minimum wage jobs, paying for transportation and cell phones, and contributing more to their own school costs or rent. Time will tell if their saving sense will materialize.
Whatever generation you fall into, understanding your needs for retirement (whether that is near or far) is imperative. Education around budgeting, managing debt, investing and saving are the key components to our conversations.