Millennials have been the butt of the joke for years, especially when it comes to finances. The fact of the matter is that the struggle is real. If you are a Boomer, your eyes are definitely rolling in the back of your head. Your generation, just like those before, has also had to overcome challenges. I’m also aware this whole pandemic has also put a wrench into your retirement plans, too. But, the times are changing.
Boomers v. Millennials
Consider the following;
● Millennials pay way more a month for housing. In fact, more of us are spending over $1,000 monthly per month. And, usually, that’s just for rent and not even a mortgage!
● Only 36% of millennials have never had student loans. What about boomers? That figure increases to 61%. Overall, almost 45% of millennials currently have student loans.
● Around 9% of millennials believe that they will never retire. If they do, they are not exactly sure when. This is only true of 4% of boomers.
● While both have savings accounts, the key difference is how much each has saved. Boomers have had more time to pad their accounts. But, millennials are working with less than $5,000 saved, while boomers have more than $15,000 stashed away.
● When boomers were around the same age as millennials, they owned about 21% of America’s wealth. Millennials only have their hands on 3 percent.
● Due to increased living costs, student-loan debt, the Great Recession, and COVID-19, millennials are struggling to catch up financially.
Millennials are Terrified of Retirement
Millennials deal with unique challenges that are turning retirement dreams into nightmares.
● High unemployment. Even before the virus that shall not be named, this was a concern.
● The middle-class squeeze. Earnings have stagnated. At the same time, millennials are facing higher costs of goods, housing, insurance, and college tuition.
● Poor-quality employer plans. A mere 41% of millennials who are at least 22 have no access to either type of plan through their employers.
● The uncertainty of Social Security. Some fear mongers proclaim that this is going to run out. It’s unlikely that that will happen. It is more likely that millennials will receive a portion of the promised benefits.
● Investing intimidation. If you are unfamiliar with investing, it can 100% be overwhelming and daunting when choosing investment options for your retirement plan like a 401(k).
There can still be a way to enjoy today and achieve your retirement goals. And, it doesn’t matter what other generations are telling you what to do. Boomers are gonna be boomers. If millennials want to reach their financial goals, then they need to do it their way.
Due might be the product to finally help everyone retire with confidence.
How Due is Helping Millennials Retire with Confidence
Control from the palms of your hands.
According to a study published by Zogby Analytics, roughly 90% of millennials stated that their phones never leave their sides. Why? The most obvious is that everything we need is right there in one convenient device. Despite being attached to smartphones, millennials actually hate talking on the phone. Maybe it’s because it’s easier to hide behind or technology or because it makes you less vulnerable. Personally, I think it is faster and more suitable for our lifestyles. Just think how it was back in the day. You would have to find a financial advisor, schedule a meeting with them over the phone, and then actually have a sit-down with them. That’s not terrible. But, with Due, the process is so much simpler. After signing up, there’s a calculator that will help you determine how much you’ll need to retire. With that out of the way, it will then tell you how much you need to put aside, as well as how much you’ll receive in retirement. And, you can do this all without having to speak with another human being.
You won’t miss out on annuities and pensions.
An annuity was a pretty cool perk offered to employees in the past. Basically, annuities are a long-term contract between you and an insurance company. You invest money each month. And, in return, when you retire, you’ll receive a regular, guaranteed income for the rest of your life. That means you know how much money you’re getting each month in retirement. There are also pensions. They’re kind of like annuities where during your working hours, regular payments are put into an investment pool. And, as a result, you’ll have money for the rest of your life. Both of these became less desirable during our lifetimes. Today, most companies offer a 401(k) that usually works in their favor, not the employees’. Due allows you to claim your retirement plans, and you can do so on your terms, not an employer, insurance company, or government. Due is essentially “the annuity for the modern-day person.”
No strings attached.
Through Due, you can invest as much, or as little, as you would like each month. No limits. Just know that the more you invest, the more you’re gonna receive each month during your post-working years. But what if you need to cash out your annuity? No problem. You can do this whenever you want. Sure. You might get charged a few free for doing this, usually, between 2% to 10%; it does give you some peace of mind that you have these funds if you need them for an unforeseen emergency — like a pandemic that forced us to sabotage our retirement funds. The longer your money is invested, the lower that fee becomes.
Straightforward retirement planning.
Due is a to-the-point retirement planning solution. Thanks to Due’s Annuity Calculator, I know exactly how much money I need to stash away and what will be going into my future bank account. Also, Due is upfront about the fact that you’ll be given 3% interest. Since Due gives me an exact figure on funding my retirement, I can create a budget for the things I’m into, such as traveling, concerts, and vices like the occasional cocktail.
Making retirement savings actually count.
Millennials are saving money, but in the wrong places. For example, we’re buying Acorns. I actually like that app when it comes to something like a rainy day fund because I add money through round-ups. As a retirement vehicle? Not so much. Instead of an annuity or pension, you can set up a traditional Roth or even a SEP IRA. Having these accounts is better than nothing. But, they’re just not as secure and guaranteed as the former. And, we are also into the crypto craze. Nothing wrong with investing a couple of bucks here and there. For retirement? Forget about it. The price fluctuates way too much. And, that’s not the case with Due since it’s required to have regulatory certificates.
Presented by: T1