Written By: Anna Carlson

If you’re a parent, you know firsthand about wanting even better for your children than you want for yourselves. You strive for their confidence, stability, and preparedness for the future. But let me ask you this: compared to your parents, how are you feeling about your financial position? If you’re like most Americans, you may feel like you have it tougher, not easier.

Today, we’re diving into some eye-opening statistics from a recent poll that reveals a staggering 82% of American workers believe it’s harder to retire comfortably now than it was for their parents. We’ll explore the perceptions of younger Americans regarding their retirement prospects, the challenges they face, and the steps they can take to secure a more stable financial future.

Understanding the Poll

According to a recent CNBC Your Money retirement survey, younger generations are indeed feeling the weight of financial uncertainty. But are they right to feel this way?

The survey reveals a significant disconnect between the expectations and realities of retirement for younger Americans. Many feel overwhelmed by the financial challenges they face, including student debt, high living costs, and an uncertain job market. This sentiment is palpable, as younger generations grapple with the prospect of saving for retirement in an increasingly complex economic environment.

The Debt Dilemma

One of the most concerning factors highlighted in the survey is the role of debt.

Debt, particularly student loans, is a heavy burden for many millennials and Gen Zers. With a median non-mortgage debt of $30,558, younger Americans are struggling to save for retirement while managing their existing financial obligations. In fact, those with student debt have been shown to save 36% less for retirement than their non-borrowing peers. This creates a cycle of financial stress that makes it even harder to build a nest egg for the future.

Longevity: A Double-Edged Sword

Another critical factor affecting retirement planning is longevity.

As life expectancies increase, the amount needed to sustain a comfortable retirement grows significantly. For example, men born in 1950 can expect to live 65.6 years, while women can expect to live 71.1 years Compare that to men and women born in 1991. They can expect to live to age 71.9 and 79 years, respectively. This means that younger generations not only need to save more but must also plan for a potentially longer retirement period, which can feel daunting, especially when weighed down by existing debts.

Taking Control of Your Future

So, what can younger generations do to take control of their financial future?

First and foremost, it’s essential to create a solid financial plan. Start by assessing your current financial situation, including all debts, expenses, and income. From there, prioritize paying down high-interest debts, like credit cards. Next, consider increasing your investment savings/retirement account contributions, while working to pay off lower-interest debts, like student loans. Even small, consistent contributions can compound over time and make a significant difference.

Additionally, don’t underestimate the power of budgeting and living below your means. It’s crucial to establish an emergency fund to safeguard against unexpected expenses, which can derail your retirement savings.

Conclusion

As we’ve discussed, younger generations face unique challenges when it comes to retirement planning, including debt and increased longevity. However, with a proactive approach to financial planning and a commitment to saving, it is possible to build a brighter financial future.

At Carlson Financial, we specialize in personalized retirement planning tailored to your unique circumstances. If you’re feeling overwhelmed by your financial situation, don’t hesitate to reach out to us. Together, we can create a roadmap to help you achieve your retirement goals and ensure that you’re not just surviving, but thriving. 

And remember: it’s never too early—or too late—to start preparing for your future! 

Say What?

Hershey is turning its candy into energy drinks and protein powders with C4

The Hershey Company (HSY) has struck a deal with C4 Energy, a top-selling supplement brand that has gained popularity as people have looked to build muscle and work out more following the pandemic. Hershey’s namesake milk chocolate and Reese’s peanut butter and chocolate will soon be sold as protein powders and its Jolly Rancher candies will be turned into bubbly energy drinks.

This week in history

1850 – The first National Women’s Rights Convention begins

1881 – Shootout at the O.K. Corral

1945 – The United Nations is established

1962 – JFK gives addresses the nation about the Cuban Missile Crisis

2003 – The Concord makes its final flight

What did it cost? (Kelloggs Cornflakes)

1974 – $0.43  

2004- $2.99

2024 – $4.98

Source: https://www.cnbc.com/2024/09/04/americans-say-its-harder-to-save-for-retirement-than-for-their-parents.html

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