I know us millennials have taken some pretty hard blows during the last two recessions. But, can you believe only 20% of Millennials report confidence in being able to retire at age 65?
This all leads back to 60% of Millennials not actively saving for retirement-- and the principal reason isn't debt!
According to a TD Ameritrade Report ( Report ), 1 in 5 millennials report spending 50%-59% of their income on housing while 8% of them report spending 60%-74% of their monthly earnings.
This leaves virtually no wiggle room for savings, especially when it's recommended to save at least 40% of income over the next 30 years to live off even half of your current salary. (Report)
Maxing out your 401(K) and IRA's can help set you up for retirement -- Yet, only 35% of Millennials report maxing them out.
With the COVID-19 pandemic, Millennials' retirement future looks more grim than ever.
30% of Millennials said they or someone in their household were laid off due to COVID-19 and 39% said they or someone in their household had to take a pay cut. (Report)
Also, many corporations have removed their r401(K) employee benefits.
Therefore, if you have been laid off during this recession, one thing Wealth Managers advise you to do is to rollover your 401(K) from your previous employer into a IRA ( Individual Retirement Account). That way you don't leave your 401(K) stagnant or collecting dust.
Right now is a great time to rollover your 401(K) into an IRA. See this article to find out the top 7 benefits of rolling over your 401(k) when you leave a job. ( Click Here )
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