Will This Generation Come Up Short in Retirement?
Due to a rapidly changing economic landscape, young people around the world face an unprecedented amount of retirement challenges. Many workers in their twenties are new to the financial planning process, but already believe their retirement future will fall short of older generations.
After witnessing a global recession and experiencing first hand the heavy burden of debt, 59 percent of adults between the ages of 20 and 29 in the workforce expect to be worse off financially in retirement than their parents, according to a new survey from Transamerica Center for Retirement Studies in collaboration with Aegon. Furthermore, 28 percent believe that during their own retirement they will need to financially support their aging parents. Young adults recognize the need to take on more financial responsibility, but 37 percent say they will likely fail to meet their retirement needs.
“Getting into the workforce is hard for anyone at any time, but it’s even harder now. By and large, job prospects are difficult,” Catherine Collinson, president of the TCRS, said in a phone interview. “In the United States, the well-publicized issue of student debt makes it even more difficult. People are entering the workforce at 22 years old, and rather than having a blank balance sheet ready to start building savings, they are entering the workforce with significant amounts of debt.”