For Baby Boomers, the prospect of retirement has, by and large, been as secure as a house with a state-of-the-art alarm system in a neighborhood not prone to crime. Their residences have had great foundations, too, with a job, home ownership, Social Security, and in many cases, a pension holding it up.
For Generation X, however, that infrastructure began to crumble when pension plans were replaced by 401(k)s in the 1980s, replacing employer investment with worker contribution. This put investment risk and control in the hands of the employee. With the Great Recession causing equities to plummet by 45% in 2009 and the housing market decreasing real estate prices by 34% since 2006 and forcing many into foreclosure, Gen X Americans have faced further troubles.
Generation Y’s retirement protection is about as invulnerable as a computer exposed to an excess number of viruses, which is to say – not at all. These Americans must attempt to keep the structural integrity of their homes in tact, so to speak, with only two factors: a job and a 401(k). But the troublesome task of finding a job and remaining employable coupled with the issue of copious amounts of student debt makes Gen Y’s prospect of secure retirement even less stable.
College graduates are having difficulty landing reliable jobs, and the financial obligations that came along with earning their degrees means that when they do find work, much of their money must be sacrificed towards their debt, not their retirement funds. The average yearly cost of just one year of college can range anywhere from $19,300 to $37,400, depending on the institution and whether it’s a public or private university. This means that graduates are entering the tough job market with more debt than any other previous generation.
Given these facts about Gen Y’s financial situation, it’s not surprising that in a recent study by Ameriprise Financial, job security was revealed as the number one concern for members of Generation Y. Without that security, retirement savings becomes a difficult reality, especially when student loans serve as a barricade to 401(k) participation.
At Safe Retirement Solutions, we want to make sure that even with the troubling economic situation, you do not feel discouraged about the hope of retirement and saving for your future. Our team of financial advisors can help you to plan effectively for your life after the workforce, helping you to save money even if there doesn’t seem like there’s enough to go around. We’re here to help you meet your retirement goals and dreams.
For more information about Professional Financial Planning, or for professional financial advice, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!
Safe Retirement Solutions’ financial advisers help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.
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Gen Y faces retirement as a go-it-alone affair