The young workers of today have become so hardworking and competitive. However, not most of us think about retirement. This might be one of the reasons why undersaving for retirement can cost millennials a lot in the future.
Millennial parents refer to parents who are born between the years 1981 and 1997. An article published in Forbes states that this group states that although they are trying not to incur a lot of payables in the future, they are not taking saving seriously.
Experts have come to believe that millennials are not eager to save. A press release from consultancy Aon Hewitt states that this "potentially [leaves] thousands of dollars on the table and negatively impacting their long-term financial health.... young workers seem to fall victim to inertia with many continuing to save only at the default rate, or slightly above and risking their long-term savings by not receiving the full employer matching contributions that are offered," Rob Austin, director of Retirement Research at Aon Hewitt said.
This is one of the reasons why the millennials should reconsider saving on retirement. This means that the young workers should be diligent when it comes to making contributions that can have a great impact in later years. These contributions can prove to be of great help, especially when, 35 years later, you are sending kids to college while paying off a mortgage.
"For young workers, it may seem insignificant to increase 401(k) contributions by a few percentage points - particularly at a point in their career and life when they're likely earning a smaller salary - but the long-term effects can be remarkable," explained Austin. "The bottom line is young workers need to save more, starting now."
As early as now, millennials should rethink about their priorities. While it is true that young workers should start saving for their future families and children, it is also type that it is actually a smart step to think also of your future, where the money becomes limited and the financial demands become high.
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