Last week I stumbled upon a recent study by Nerdwallet – 73 Will Be The Retirement Norm For Millennials. That doesn’t sound good at all. I can’t imagine grinding away at my old job until I’m 73 years old. The Millennial generation is facing this challenge because they carry a big student loan debt. Many of them also graduated into a tough job market over the last few years which make it even more difficult to gain traction in their careers.
Here are Nerdwallet’s suggestions for the Millennials.
- Get employer 401(k) match. The match can increase retirement saving by quite a bit.
- Make above average contributions to retirement accounts. Easy to say, hard to do.
- Invest in Index Funds. The stock market is still a good investment.
These are good suggestions, but I think they are missing some crucial points.
The Millennial generation is 95 millions strong and they will be very influential in the years to come. The baby boomers’ influence will wane soon and the Millennials will take over. I’m not an economist, but the sheer number must mean something. I feel the Millennials will usher in a new era of prosperity over the next few decades. Whatever financial woe they have now will be solved in time. I guess I’m just an optimist at heart.
Over the last few years, I have met more and more people with nontraditional careers. Professional careers aren’t the only option for college graduates anymore. Millennials have a lot more choices than the previous generations and I think that made it easier to pursue their dream jobs. If you love what you do, then putting off retirement isn’t a big deal. Anyway, why retire if you’re living the dream?
Wealth has a different meaning for the Millennials than the Baby Boomers. They value freedom and experience more than material wealth. They don’t care about fancy clothes and cars and they are willing to live a more frugal lifestyle if it is rich with experience. Many of them don’t even want cars at all and are comfortable with public transportation.
Millennials may seem unlucky, but I don’t think that will hold for long. The economy will recover and they’ll pay off those student loans one way or another. They have a lot of opportunities that previous generations never had and they are taking advantage of them.
Are you a part of the Millennial generation? What do you think about retiring at 73?
*Note – short one today. I’m turning one of my rental and I’m finding it difficult to write. I guess my mind is on the rental and not the blog right now. It’s too bad I’m not a Millennial because I can’t multitask at all. Anyway, things will be back to normal in a week or two so forgive me for the short articles in the meantime.
Photo credit: flicker Innovaro