Why Traditional Retirement is Looking Unlikely for Millennials

Millennials came of age in an environment of unstable work and record levels of student debt.

Experts worry that, of the roughly 71 million individuals who make up this generation, many are falling so far behind that their retirement may be at risk.

The financial health of America’s younger generations is a real and growing concern. Research indicates that Millennials are, in fact, building wealth more slowly than other working generations, even though the majority hold college degrees. This isn’t due to overspending, rather it’s the negative results of stagnant wages and rising living & education costs.

Three Main Hurdles To Traditional Retirement

1. Limited access to retirement plans and pensions at work has resulted in a struggle to build their retirement savings, since experience shows that people have a great deal of trouble saving on their own.

2. Millennials are less likely to have bought a home, and home equity is a valuable retirement asset.

3. Young workers are more likely to be burdened by student loans, and workers with student loans have less to stash in retirement plans and are more likely to end up at risk in retirement.

But these obstacles are not insurmountable. A number of studies have indicated that millennials are indeed saving, just not for retirement, and they are also wary about investing their savings in the stock market. Those investing in the market often hold their money in conservative portfolios that fail to align with their overall financial goals and life circumstances.

There’s Still Time

The good news for millennials is that retirement is still a long way off, and a lot will depend on their savings patterns in general, financial market returns, and how long they work. If they change their perception of the stock market’s volatility, then they’ll be able handle a more aggressive portfolio that will garner more growth.

Individual financial planning, saving, and investing is a difficult thing to do, but with fewer options for employer-sponsored retirement plans, millennials must find another way to make this process work for them. This is where day-to-day money saving strategies, such as Monorail's wishlist and Tracks, can help. Millennials can easily develop spending and shopping habits that allow them to reach those big money goals.

See how Monorail can help you save for the future.