When it comes to money, most of today’s young workers appear to be wise beyond their years. In fact, a majority of Generation Y workers (those born between 1981 – 1996; also known as Millennials) are already saving for retirement, building emergency funds, and creating monthly budgets, according to new research from the Principal Financial Group®.
That’s more than you can say for a lot of people twice their age.
One reason for their financial get-up-and-go might be the experiences of their parents. This generation saw their parents cope with the recession and, for many, the fallout of inadequate savings.
As a result, Gen Y workers are realistic about the challenges ahead. They estimate an average price tag of more than $3 million (in today’s dollars) to achieve their goals for the future, and the majority plan to retire after age 65. More than half believe Social Security will be history by the time they retire; a quarter think Social Security will still be around but with reduced benefits.
Despite the roadblocks ahead, Gen Y workers are optimistic—because they’re taking charge of their financial futures. Maybe the rest of us have something to learn from them.
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