Financial

Millennial Heading Toward Retirement Crisis

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Retirement is supposed to be known as the golden years to most. You plan to take nice relaxing vacations, travel to see the world, maybe places that have been on your bucket list for many years and also to find hobbies that you enjoy that keep you busy. Unfortunately, some retirees aren’t able to live this reality because they may have fallen behind on retirement planning or have struggled to maintain their investments.

Canadian statistics show that 97% of retirees will retire below the poverty line. It seems as though most people rely on their bank institutions to handle their retirement savings and planning investments, which seems expectant of banks to do such, but banks end up taking advantage of their clients money, and I guarantee that the main focus for them is not to save you money but to merely use your money and make more for themselves.

Make sure that you are in control of your savings and investments and talk thoroughly with your advisor to make sure everything is looked after the right way and of course, your way!

How Millennials Can Amass a Million

Wells Fargo offers this example: A Millennial with a $32,000 starting salary at age 25 who saves 5 percent that year and increases the amount by two percentage points each year up to 13 percent could be sitting on $1 million by age 65. (Caveat: Wells assumes a 2 percent annual raise and an average annual investment return of 7 percent — not impossible, but no cinch either.)

The real question is: Will $1 million be enough for a comfortable retirement? Robert Powell, the sharp retirement writer for USA Today and MarketWatch.com, doubts it, and I agree. (Keep in mind that today’s $1 million would be worth around $400,000 to $500,000 when Millennials retire.)

P.s I am not supposed to share this because I’ve worked for top leading banks, they hate seeing this because they don’t want you to know their secrets

Related article:  How to increase your Credit Card

Reference:
America’s coming retirement crisis
5 Reasons the Retirement Crisis Is Getting Worse for Average Americans
Pensions and retirement

Melissa Dimon

Melissa Dimon is recent graduate from University of Texas- Austin and Former Content Marketer at Simple.com and Currently Serving as Editor In Chief For University Magazine and Edmonton Gazette

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