The generation poised to inherit the world is very bad at saving for retirement, according to a new survey from the Indexed Annuity Leadership Council (IALC).
According to the survey, 37% of millennials have no money whatsoever saved for retirement. Couple this figure with the 24% who are in debt, and over 60% of millennials have nothing or negative money saved for their retirement.
It should come as no surprise that a survey from the IALC found that millennials are in fact very interested in investing in indexed annuities for retirement. Indexed annuities are savings vehicles that can increase in value based on the market, but can never lose the principle payment.
Annuities can be paid in one lump sum or through a stream of payments over time. In exchange for these payments, you are guaranteed future disbursements.
Starting Everything Later
Millennials are generally saddled with tremendous debt leaving college, and they are putting things like buying a car and a home until later in life so they can pay down debts. Consequently, millennials are also starting their retirement planning later in life.
Unfortunately with millennials though, they are in a worse situation than their parents. With diminishing returns on social security, stagnant wages for the middle class, and decreasing 401k match programs, it’s more important now than ever that millennials prepare themselves for retirement. Unfortunately, since the majority of them live paycheck-to-paycheck, this is not going to happen easily.
Millennials are going to have start making financial sacrifices to plan for their future sooner than later. See the survey results in the infographic below:
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