Every generation feels like a sandwich as they have bound two ways. They have to care for their ageing parents as well as about the future of their children. Naturally, they feel the pinch and often worry about savings for post-retirement benefits.
In the same context, millennials also face a similar dilemma. The family dynamics have changed, and an unspoken question always remains to hover in individual’s minds – “How millennials will take care of their parents and how much will they be able to contribute to raising their kids?”
Understandably, millennials worry not only for their parents and kids but also for their own retirement life.
Here are 5 issues that make millennials worry –
- They may Ignore the Need to Start Saving Early
Every millennial understands the need and importance of savings. However, they fail to implement the rule of ‘start saving early’. They fathom the impressive amount of 60 to 70 lacs as savings for a comfortable retired life. But that amount may not be enough when we consider inflation 30-40 years down the line.
Workable Solution
Millennials must focus on saving at a younger age with whatever amount they can. Smaller amounts of savings will pile up cumulatively and build an impressive sum.
- Zero Savings
Zero savings is as fatal as not earning at all. Spending recklessly in maintaining the lifestyle and not saving can lead to financial problems in the future. Often, millennials spend first and then think of saving.
Workable Solution
Even a penny saved will be useful. So, however smaller the amount is saved, save it. The sooner, the better.
- Absence of Employer Support
Older generations had the backup of the pensions from their employers’ side. This support is missing for millennials. There are no official pension plans that could go a long way in securing their finances for post-retirement life. Plus, there is a lack of awareness also from employers’ side for initiating timely savings from their current income.
Workable Solution
Millennials must research and find a good pension for building a corpus fund for their golden years. They can take the help of a financial advisor and timely buy a retirement plan.
- Changed Employment Format
Many millennials work in modern employment formats like part-timers, freelancers, gig workers, work-from-home setups, remote workers, etc. These employment formats do not provide post-service or retirement benefits.
Workable Solution
Look for work in law-abiding companies that classify their workforce as legit employees and entitle them to the benefits. In the absence of finding such employment, they should buy government-backed plans.
- Income Stagnation
Income stagnation hinders millennials from saving enough for their retirement. And then the inflation diffuses the increase in income, if any. Other expenses like, education loans, home loans, etc., add to the woes.
Workable Solution
Again, the fundamental of saving, however small, will come to aid. Choose a suitable retirement plan that would match the risk appetite.
Amidst tough employment scenarios and inflation, take control of finances and plan for the future. Instead of worrying about their retirement life, they should take control of the financial reins well in time.
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