How many 20- or 30-somethings have you talked to lately about long-term financial planning?
If your answer is “a few” or “none,” it’s a perfect time to open a dialogue about the importance of income to financial security and how to protect it. Why? Here are five reasons:
1. Young wage earners value financial security.
The latest MetLife Annual Study of Employee Benefits Trends reveals that 52 percent of working 20-somethings are focused on their long-term financial security. That’s not surprising, considering they have come of age during turbulent financial times and are faced with shouldering more of the burden of their own financial security than generations before them. Few will ever see a defined benefit pension plan. Most will foot much of the cost of their benefits. And most will be responsible for making benefit choices that could easily determine their future financial security.
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2. Their chances of experiencing a disability are significant.
According to the Social Security Administration, a typical 20 year old has a 1 in 4 chance of experiencing a long-term income-interrupting disability before retirement. Even more eye-opening is this: as of Dec. 2012, there were more than 2.5 million disabled workers in their 20s, 30s, and 40s receiving Social Security Disability Insurance (SSDI) benefits.