Who Is More Ready for Retirement?Boomers or Millennials?
Don't shoot the messenger...... Whether or not you agree with it or you refuse to let the millennial stereotype go, Millennials are proving study after study to be better with money than any other generation. They are the biggest generations of savors. They have a healthy respect for investment risk. They delay gratification. The only debt that they have for the most part is student loan debt. At least that is investing into an education rather than a flat screen TV. They don't buy real estate unless they can do so without creating financial strain.
Now, the latest survey points to a recent J.D. Power Group Retirement Satisfaction that reveals a very telling statistic.
Millennials are better prepared for retirement than Boomers (born 1946-1965). The survey also shows that they are the most likely of all generations to have set retirement goals and have the highest amount of savings (relative to their age).
Millennials (born 1981-1996) are often characterized as lazy and entitled. Well, it takes more than being lazy and entitled to be at top of their financial game. At the rate this country is going, I find these statistics encouraging. We need a generation to break the cycle of irresponsibility and start the culture of financial responsibility.
So, why do you see these stats?
I think that there are two reasons. First, there is a big difference in starting out with credit card debt and student loan debt. Student Loan Debt is typically larger and makes things real very quickly. I find that these types of reality checks create the motivation for better habits.
Second, this is my own theory. Millennials had a front row seat during the financial crisis watching how this effected their parents and families. To a greater degree, you can see this with Great Depression kids as well. Great depression kids have a different thinking when it comes to money after seeing the effects of the Great Depression. Obviously, the financial crisis of 2007-2009 didn't have as great effect as the Great Depression. However, it was impactful enough to make an impression. The bottom line is that Millennials saw what happens when you are saddled with a lot of debt and little savings and a financial tsunami hits.
Whether you agree or disagree, findings like this are encouraging. We are seeing even more encouraging signs from generation Z (generation following the Millennials). We need a financial revival in this country. We need better habits. It starts one generation at a time.