Despite dour prognostications regarding baby boomers’ retirement preparedness post financial crisis, a recent research report finds that there are other segments of the population who are in deeper trouble when it comes to retirement planning — like Millennials.
In its third annual research report on the state of U.S. employee retirement preparedness, Financial Finesse, an unbiased financial education company that offers counseling programs, found that Millennials have a significant risk of not being able to achieve retirement security.
With just 17 percent of Millennial employees surveyed stating that they anticipate being able to retire with 80 percent of their income goal, there is ample need for concern. Although baby boomers had the curveball of the financial crisis thrown at them as they were approaching retirement, Millennials will have to deal with myriad other issues that may pose an even greater challenge.
Systemic issues, such as rising health care costs and a possibly insolvent Social Security system will acutely impact Millennials. Couple that with the fact that many Millennials can expect to live longer than older generations and the prospect becomes even more unsettling.
Drawing a link between the generation that arrived home after World War I only to have to contend with the difficulties of a shifting cultural, political and financial climate, the research paper invokes “lost generation” when discussing the retirement challenges Millennials face.