November 14, 2013
A recent study of U.S. employees’ retirement preparedness for 2013, found that while employees’ retirement preparedness is improving overall, largely due to better investing behaviors and market appreciation, employees are not making improvements to their savings behaviors. This is concerning, since ultimately saving is the biggest driver to achieving retirement security.
It also stated that Millennials (defined as those born between early 1980s and early 2000s) are at significant risk of not being able to achieve retirement security. Only 17% of Millennial employees said they are confident they are on track to retire with 80% of their income (or their goal) in retirement. This is particularly concerning since this generation will likely receive relatively less in corporate and government-sponsored benefits, and may have to overcome higher tax rates, inflation rates, and health care expenses than earlier generations. It’s also concerning because most people who claim to be “confident they are on track” likely misjudge the long term impact of inflation and have not taken into consideration the normal list of things that will likely create stumbling blocks to their long term financial security.
Although a drop in the bucket in addressing the issues facing this younger generation, I am proud to share that the Merriman Financial Education Foundation’s accredited course, “Personal Investing,” has attracted 42 students in its first offering this fall at Western Washington University, and the feedback we’re receiving is very encouraging. I am especially pleased to discover that over 60% of the students are not Business and Economics majors.
I would love to find ways to expand the reach of this course and empower more students to grasp the principles of saving and investing to help ensure they reach their retirement goals, and are not a “lost generation.” If you have ideas regarding this, please contact me.
As always I welcome your questions and comments and encourage you to share my free eBooks and resources at my website, and join me on social media links on this page.
To Your Success,
It’s been one year since my first article among the RetireMentors, and we have covered a lot of territory in that time. These weekly articles have been opened more than 1.4 million times, so I know a lot of eyes have seen them. More
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