Millennials Want a Different Kind of Retirement

While most Americans dream of a quieter, comfortable retirement doing not very much, Millennials have a different vision. They are more likely to prioritize travel over owning a home and the restful Golden Years idea.

They’re also choosing a different method of achieving their retirement goals. While most people start saving early and aim to reach a sum that will last the span of their retirement covering all costs, Millennials regard the process as more of an ongoing activity so that they can enjoy some of the fruits of the saving along the way.

This change in attitude has been driven by many factors – the pandemic, the cost of home ownership, the focus on work/life balance, and now rapid inflation.

Another outcome of these changes is that Millennials are not as invested in the idea of preserving wealth for the next generation.  They’re quite happy to spend it all while they have it.  One plus is that Millennials, on average, start to save much earlier than other age groups and stick to it rigorously.

Tips for Millennials Saving for Retirement

• Create a cash cushion – this is a vital first step.  Aim for at least four to six months’ salary in an emergency fund.
• Plan for a financial situation that would make working an option rather than a necessity. Set a goal that allows for financial freedom and work towards that.  It can be achieved at any age.
• Learn investment strategies. Learn about diversification of investments so that you can protect and grow your fund. It will need to sustain your choices during your lifetime.
• Don’t fall prey to the “Shiny Object” distractions.  Chasing every new investment idea can derail your strategy and you might end up losing what you’ve already built. “The sensible middle ground of investing will be the steady, reliable way to build your fund,” says Gary Isler, Senior VP Investment for David Lerner Associates.
• Use a retirement calculator to help you figure out what you need to aim for and how best to get there.

No matter the final aim, there are certain truths that apply to everyone saving for retirement. Whether you plan to sit back and enjoy your retirement years at 65 or 70 or you’re itching to get on the road and spread your “retirement” over a longer period, you still need to plan and save.  Talk to your financial advisor, so you create the best plan for your goals and dreams.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

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Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.