Many Millennials Have No Savings

By Kaspars Grinvalds @ Shutterstock.com

A new report from the National Institute on Retirement Security shows that around 66% of working age Millennials have nothing saved for retirement. That’s not good, but also not terribly surprising since so many of them have had a delayed start in the work force, have massive student loans, and rents are at some of the highest levels ever.

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On CNNMoney, Katie Lobosco details the report, writing:

About one-third are saving for retirement. Most have less than $20,000 but some have much more. The average account balance is $67,891, according to the report.

If they are saving, it’s likely their employer offers a retirement plan, like a 401(k). More than 94% of Millennials who are eligible for a workplace retirement plan are saving. That’s about the same participation rate as older generations.

But Millennial workers in particular often find they don’t meet the eligibility requirements for a 401(k) even if their employer offers one. Sometimes they don’t work enough hours, or employers require them to work for a certain amount of time before they qualify.

About 25% of Millennials said they were not eligible to participate in an employer-sponsored retirement plan because of their part-time status.

It’s never too early to start saving. With the power of compounding, even saving a little today could make a major impact on your wealth headed into retirement. If you are a young person, save whatever you can. Invest it as best you can, and compound it until you retire. Take a look here at what the power of compound interest can do. A saver who saves a little bit early, can end up with even more than someone who saves more but gets a later start.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.