Personal and pivotal perspectives on timely topics, written by our professionals.
By Jordan R. Reback, MBA
Save for retirement or take a trip to the Caribbean. Eat a home cooked meal or a steak at Peter Luger’s. Various reports have detailed findings detailing the difference in priorities of baby boomers compared millennials. According to Aron Levine of Merrill Edge, “Young adults tell us they are willing to do whatever it takes to achieve freedom and flexibility, even if it means working for the rest of their lives.” Although Millennials are saving, they are using their earnings for different things such as travel, food, and new experiences with family and friends.
Student loans have been a burden on many, however, contributing to retirement accounts such as 401(K) plans and Traditional or Roth IRAs, can be a tremendous benefit to millennials in the long run, if they are taking advantage of these retirement plans. Whether the retirement plan contribution is 3%, 10%, or 15%, planning for retirement now will result in millennials dealing with less regret in the future. The biggest asset you have is time and it will be in your best interest to contribute now and reap the rewards later. Nevin Adams of ASPPA said “young people have always been a little slow with saving for retirement. Generally young people have other priorities than retirement.” Although obstacles such as student loan debt and low pay may be some of the reasons millennials have been unable to save for retirement, surveys have illustrated their inability to part with the quality of life. As we move forward, it will be interesting to see if priorities change for millennials and if Generation Z will follow in their footsteps.