Close to 70% of Millennials have no retirement plan

First of all, who’s a “Millennial?”   That’s a little hard to pin down but let’s define it for our purposes as people aged between the mid-20s to the mid-30s.

According to LifeHealthPro, most of you have not saved anything even though you think you’ll retire at age 65.

Nearly 70 percent of Millennials have not begun saving nor contemplated a strategy for retirement even as 66 percent report they expect to retire fully by 65.

You are also watching your “… parents’ nest eggs wither if not become completely decimated.”  While many parents would like to leave something to their children, they also want to enjoy their golden years.  Many have sacrificed to send their children to college and consider that to be their contribution to their childrens’ future.

The issue of Social Security is one where Millennials appear to hold two contradictory ideas in their minds at the same time.

Interestingly enough, the survey found that Millennials view Social Security as a system with systematic sustainability issues for the long-term, yet, more than half of them reported that they will count on it as a source of income in retirement.

About 60% of this group participates in company retirement plans, typically 401(k) type plans.

What is the one piece of advice that Millennials should take if they seriously want to retire at 65?  Get a financial advisor!  It’s true.

Ninety percent of people who work with a financial advisor are happy with their retirement income plan, according to a Franklin Templeton survey.

Eighty-seven percent who work with an advisor are confident in their plan. And 86 percent of respondents who work with an advisor are more likely to understand their plan, according to the survey.

For those respondents without an advisor, 44 percent are happy and confident in their retirement income plan and 48 percent understand their plan.

According to the findings, 51 percent of respondents indicated that they would switch financial advisors or begin working with one for the first time if an advisor developed a written retirement income strategy for them. This was particularly true among respondents in key asset accumulation years, specifically, 65 percent of those ages 35 to 44 and 62 percent of those ages 25 to 34.

What do most people want out of an advisor?

A retirement income plan designed to meet expected expenses was what 33 percent of respondents wanted most from a financial advisor. Twenty-three percent cited an advisor’s understanding of their goals, concerns and fears about retirement as most important to them. Selecting investments that matched their retirement income plan and risk tolerance was most important in an advisor to 19 percent of respondents.

One other important point: people who are serious about financial security get a financial advisor.  An advisor works like a coach, telling you what you need to do to achieve your objective, encouraging you, sharpening your skills and educating you about the world of finance.  And for Millennials, the time to start is now.

 

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