A new study has revealed that most of the Americans are still saving very less or not at all towards the retirement benefits savings. The same report states that they are afraid of running out of money in retirement. The reasons for not saving up vary from student loans to working as an entrepreneur to avoid getting laid off from a company.
Data Shows Millennials have less Retirement Benefits Savings
The data that shows that Millennials have fewer retirement benefits savings was shared by the Indexed Annuity Leadership Council. It states that over 54 percent of Millennials have less than $5000 saved towards the retirement and about 37 percent have no savings for retirement. The study included Americans within the age group of 22 to 35.
The data also showed that Americans are afraid of running out of money in the final years of their lives. Americans of all ages live with this fear. The Executive Director of Indexed Annuity Leadership Council, Jim Poolman says that the fear that the money will run out in retirement and be broke is not a big thing given the fact that more Americans are living longer now.
One main reason behind why Millennials are not saving enough for the retirement is that a major chunk of their income is dedicated to paying off student loans. One of the respondents admitted that when he was in college, the tuition was raised by over 300 percent. Now, a good number of his income goes to pay off a student loan and he doesn’t have much left to save for retirement.
The unpredictability of the corporate world which includes continuous lay-offs and fruitless management paths has encouraged a lot of Millennials to get their own business started. Most of these people have put all their savings to create a business and they are still waiting for the business to be profitable. One respondent said that he put all his savings in the company he owns. He put all the savings to bootstrap the business and the business became profitable just recently.
After having a look at the results of the study, it seems that Millennials do understand the value of retirement benefits savings but many of them are not able to contribute anything to it due to genuine factors. It can only be hoped that they will start saving for the retirement soon if they wish to not run out of money in the retirement.