Millennials Expect To Retire At 56 Despite Negative Net Worth

Not only are millennials the most populous generation in the American workforce, but the tremendous amount of credit card and student loan debt they carry has made them the most indebted generation in modern history - which is forcing them to put off other major life decisions.

But despite the fact that a surprising number of millennials are fat and broke, many still have an optimistic view on when they expect to retire. Though their generation mostly lacks the generous pensions offered to Baby Boomers and some Gen Xers, A TD Ameritrade survey found that millennials who use the service expect to retire at the surprisingly young age of 56. That's six years below the current minimum age for receiving social security.

Millennials

What's even more surprising, of the 1,500 millennials surveyed for the study, 53% expect to become millionaires at some point in their lives. However,  that percentage is unevenly divided between men and women: Of those surveyed who expect to become millionaires, 70% are men, compared with 38% of women.

Debt

Roughly 80% of millennials struggle with at least one type of debt. Meanwhile, according to the study, millennials are prioritizing saving unlike previous generations - or maybe it just seems that way. According to the survey, roughly 70% of respondents to the survey described themselves as "savers." Though that doesn't quite jive with the official data, which show that the personal savings rate in the US is near all-time lows.

Personal

A small percentage of savers say they never expect to pay back their loans (and recently we pointed out that about 100 or so Americans have more than $1 million in student loans). All of this is happening at a time when interest rates are rising, inflation has been showing signs of moving higher, gas prices are climbing and a shortage of homes has forced real-estate values to levels last seen before the housing crisis. Meanwhile, their net worth will likely remain negative for a while.

Back in March, we pointed out that debt-laden millennials have been set back an average of $140,000 compared with their parents - a problem that has been compounded not just by student loans but by the costs of rent, food and other bills like car loans, which have also seen rapid growth.

Student

Any millennial who honestly expects to retire at 56 should be aware: If you truly want to retire young, you need to start saving in your 20s. Because with "the power of compounding," as TDAmeritrade strategist JJ Kinahan explained it, "even those who start early can end up with more in the end."

Of course, by 'saving', Kinahan appears to mean 'gambling in the stock market', but tomato-potato.

Comments

I Am Jack's Ma… LetThemEatRand Thu, 06/14/2018 - 23:43 Permalink

A ‘survey’ of 1500 young adults by Ameritrade is, at least arguably mind you, the subject of sampling bias, meaning it would not be representative of the set of all millenials.  

It is also the case every generation thinks ill of the one that follows.

That all said, I think the problem with the average millenial is they’re fucked up...  they talk like fags, and their shit’s all retarded.

In reply to by LetThemEatRand

greenskeeper carl ACP Fri, 06/15/2018 - 00:10 Permalink

Im in my early 30's, have savings, "own" a (mortgaged) house, own gold/silver, have no credit card debt, and a decent job that allows me to save a little while providing for a family of 5 in a nice house in a good neighborhood, and I have no illusions whatsoever on retiring at 56. Or 60. Or 65. Why? Because shit I need and use goes up in price a lot faster than my income. And because my taxes will also being going up in order to preserve the illusion that the various 'old fart' payout systems remain solvent. Pretty simple calculation to make. The other possibility is that it all collapses long before I even approach retirement age.

In reply to by ACP

Manipuflation greenskeeper carl Fri, 06/15/2018 - 00:46 Permalink

You are doing well but you are not mobile.  The house is your anchor.  The business environment changes quickly these days.  We live the age of Linda Green so I would get out that house.  Most people would argue against me but then again I also have no debt and if something breaks, I don't have to fix it even if I know how.  The older your house gets the more liability you are incurring.  The maintenance costs will eat you alive and so will the property taxes.  Then your cars will start having problems and pretty soon you are in debt.

You said you have a house that is not paid for.  Do you have a car that is not paid for as well?  Do not delude yourself, you ARE in debt.

In reply to by greenskeeper carl

raging-chihuahua Leakanthrophy Fri, 06/15/2018 - 10:59 Permalink

Leakanthrophy's PORN  and  MoreSun's WHACKED RAVINGS  and Biblicism SPAM ( Wadalt: "IsraHELL did it")    AND    TodaysFox SPAM ("I made $7000 sucking cock on the Internet") --> IT's ALL THE SAME SPAMMER ---> ME!!! (Hi!)   WELCOME  to our new Today's Fox SPAMMING tranny:  s12940448

HELLO SPAM-LOVERS!!!   BIG UP from the SPAMMER BUNKHOUSE here in the Methfilled Valley Trailer Park in Methfilled Valley, PA.  Good to see my men powow, Leakanthrophy and Wadalt and  PrivetHedge  and our newbies  MoreSun (a real bacon-loving attack dog!) and CHEOLL and sanctificado  and  gzcekkyret  out from under the couch sucking their own dicks at 3 a.m. and back on the threads SPAMMING like a Grease Fire in the middle of the night!!!! 

Welcome newbie MoreSun talking some heavy attack shit at 3am!    DARWIN, our Master Spammer is whacked!!!

THIS is an important week here in the SPAMMER's BUNKHOUSE (the leaking moldy single-wide in the trailer park).  This week I (we?) are celebrating SEVEN YEARS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that? 

Each of "us" (these innumerable fake log-on's) is represented by an ACTION FIGURE that Master Spammer ("DARWIN" is his name -- can you believe that?)  lines up on his kitchen counter and TALKS TO!!  WHACK JOB!!!

 

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.

>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the French Frier at SONIC (demoted from the drive-thru window 'cuz my ZIT-covered face scared the customers), sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD (and as ACTION FIGURES on his kitchen counter) but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

More Sun  <<<  NEWBIE (a real bacon-loving attack dog!)
Cheoll   <<<  NEWBIE
Powow  <<<  NEWBIE
sanctificado  <<<  NEWBIE

gzcekkyret     <<<  NEWBIE
Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki

ll951983  <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"
Mr Hankey  [R.I.P]   <<<  total utter WHACK JOB  -- joined "The Fallen"

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey, sandraloopz0, enf83, ll951983

In reply to by Leakanthrophy

inhibi Leakanthrophy Fri, 06/15/2018 - 11:29 Permalink

56? AHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA. Is that like the age when you finally pay off your student loans?

I'm a Millenial with a 6 figure salary, and I dont think I will ever be able to retire, definitely not before 65. Who the fuck did they poll? All my Millenial buddies, at least though in a corporate/salaried world complain about the lack of pay/401k/benefits/pensions 25/8.

And how much will college be when my kids are 18? Did the math, a whopping $300,000 per year if the 6% annual yoy increase stays constant. So $1.2 million just for a undergrad degree.

You can bet my child will only be allowed to study biomedical engineering or applied math. Either that or id rather give him half upfront to NOT go to college.

In reply to by Leakanthrophy

AGuy Adolfsteinbergovitch Fri, 06/15/2018 - 03:57 Permalink

"So at least millennials have a clear objective here."

I suspect most expect the gov't to take care of them. They are Pro-socialism\Pro Big gov't and anti-capitalism. Most believe the gov't will eventually discharge them from their student loans and probably other debt. The believe that when the Boomers retire, they be able to take over middle & upper management and make big money. But they seem to forget that between them and Managment jobs is the Gen-Xers and automation. Gen-X isn't going to be bothered relying on Millennials. They just apply the DIY-attitude and automate as much as possible. Millennials are already shut out of Corp American, and will remain that way, unless by some Miracle the grow up and willing to actually do some real work.

As far as Millennials being able to retire: HA, even the youngest of the Boomers won't be able to retire. US Debt stands at $21T and are probably around $100T in unfunded entitlements & pensions plans. The Debt will likely start to explode after 2020 when large number of Boomers start drawing on entitlements & pensions. Taxes will likely soar to match entitlements and pensions outlays since there is little money or no money saved.

In reply to by Adolfsteinbergovitch

Lore philipat Fri, 06/15/2018 - 03:35 Permalink

Some (a slim minority) have a sensible, grounded, even aggressive personal financial plan, and stick to it. For the rest, there's a cell phone app.  Seriously, that trinket in their hands is like crack cocaine: nothing else in the universe matters as long as they can swipe through pictures of puppies and kittens.

In reply to by philipat

raging-chihuahua s12940448 Fri, 06/15/2018 - 10:37 Permalink

Biblicism ( Wadalt: "IsraHELL did it")    AND    TodaysFox ("I made $7000 sucking cock on the Internet") --> IT's ALL THE SAME SPAMMER!   WELCOME  to our new Today's Fox SPAMMING tranny:  s12940448

HELLO SPAM-LOVERS!!!   BIG UP from the SPAMMER BUNKHOUSE here in the Methfilled Valley Trailer Park in Methfilled Valley, PA.  Good to see my men powow, Leakanthrophy and Wadalt and  PrivetHedge  and our newbies  MoreSun (a real bacon-loving attack dog!) and CHEOLL and sanctificado  and  gzcekkyret  out from under the couch sucking their own dicks at 3 a.m. and back on the threads SPAMMING like a Grease Fire in the middle of the night!!!! 

Welcome newbie MoreSun talking some heavy attack shit at 3am!    DARWIN, our Master Spammer is whacked!!!

THIS is an important week here in the SPAMMER's BUNKHOUSE (the leaking moldy single-wide in the trailer park).  This week I (we?) are celebrating SEVEN YEARS here on ZH, obsessively SPAMMING every thread we can with off-topic comments.  You see, there are dozens of "personalities" living in this one single sad SPAMMER's sick little mind, which he calls "Spammer's Bunkhouse."  How sick is that? 

Each of "us" (these innumerable fake log-on's) is represented by an ACTION FIGURE that Master Spammer ("DARWIN" is his name -- can you believe that?)  lines up on his kitchen counter and TALKS TO!!  WHACK JOB!!!

 

SAD BUT TRUE!!  I (we?) have wasted my (our) youth (or at least the last seven years) with at least one hand in my pants and the other hand SPAMMING ZH.  Yes, indeed.  DOZENS and DOZENS (maybe hundreds) of log-on's banned -- 
>>  "I made $7500 last week on the Internet sucking cock!": that's me.
>>  Biblicism: that's me.
>>  All the porn at Celebrity-leaks: that's me.
>>  Daily Westerner: that's me.

>>  "In the news....SPAMMER broomsticked by furious readers" -- registered in Nigeria) :: that's me TOO!! 

That's our life (all of us living in Master Spammer's Mind): mopping the floor at the Porn Cinema at 2am, working the French Frier at SONIC (demoted from the drive-thru window 'cuz my ZIT-covered face scared the customers), sucking cock on the Internet, and spamming ZH with an enormous Excel spreadsheet of the log-on's of dozens of "digital friends" who upvote one another and virtually suck my little micro penis..

MEET my current imaginary friends.  We all live in one SPAMMER's HEAD (and as ACTION FIGURES on his kitchen counter) but as for me, I have gone off the reservation.  These other "personalities" are pretty troubled.

More Sun  <<<  NEWBIE (a real bacon-loving attack dog!)
Cheoll   <<<  NEWBIE
Powow  <<<  NEWBIE
sanctificado  <<<  NEWBIE

gzcekkyret     <<<  NEWBIE
Wadalt
Leakanthrophy
PrivetHedge
bobcatz
Jumanji1959
Annunaki

ll951983  <<< NEWBIE  sucks cock on the Internet -- joined "The Fallen"
Mr Hankey  [R.I.P]   <<<  total utter WHACK JOB  -- joined "The Fallen"

You know SPAMMERS never die on ZH -- here's just a sampling of the banned log-on's ("The Fallen Spammers") ---

 beepbop, pier, lloll, loebster, ergatz, armada, Mtnrunnr, Anonymous, luky luke, Cjgipper, winged, moimeme, macki mack, tchubby, sincerely_yours, HillaryOdor, winged, lexxus, kavlar, lhomme, letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, evoila, rp2016, alt right dude, altright-girl, alt-right girl, Blufin, Schlomo Scheklestein, BraveForce, Mr Hankey, sandraloopz0, enf83, ll951983

In reply to by s12940448

Mineshaft Gap philipat Fri, 06/15/2018 - 05:48 Permalink

a reflection of the way in which society and the educational system have failed to prepare them

Yes. 

Especially of the echo chamber that is digital culture. 

If you came of age pre-Internet, it was harder to select for a set of identical dumbasses who thought exactly like you, constantly reaffirmed your biases and cocooned you from bitter truths.

Well, to be honest, we had bars and churches for that, but it was possible to keep them at arm's length. Except for the bars. But I digress.

In reply to by philipat

mkkby philipat Fri, 06/15/2018 - 20:43 Permalink

We must all thank these snowflakes for guaranteeing OUR RETIREMENTS.  Keep piling on the debt, buying useless and jacked up consumer goods like iShit, video games and teslas.  Your foolish servitude keeps the economy humming along so the debt funding our health care/pensions can be paid.

If everyone lived frugally the economy would shrink by half.  There would be an immediate depression and possible currency failure as tax collections crash.  I certainly don't want that to happen while I'm alive.  So thank you millenials for your foolish lifestyle choices, which keep this ponzi floating.

PS -- thanks also to the moms and dads who are keeping junior fed and warm in your basements, with hefty allowances for consumer goods.

In reply to by philipat

Drater Manipuflation Fri, 06/15/2018 - 01:01 Permalink

I agree that younger people (especially men) need to keep their options open and not get tied down to any one location.

One of my former co-workers recently located to the Bay area for a better paying job. Instead of going through the hassle and expense of selling a house; he instead packed up his belongings into his car and left the mattress on the curb at the house where he rented a room. 

In reply to by Manipuflation

CultiVader Manipuflation Fri, 06/15/2018 - 01:56 Permalink

Manipulation, you don't have kids, do you? Kids need an anchor, a place to grow up. It's your job as a parent to give them stability so they can develop without all the bullshit involved with transience. You do your kids a disservice being a transient renter. Buy a home, raise your kids there if you can. Otherwise you're just fucking them over and creating another generation with no concept of permanence or generational wealth.

In reply to by Manipuflation

brushhog Manipuflation Fri, 06/15/2018 - 08:07 Permalink

Manipuflation...if you dont own, you are paying for all of those costs and more in your rent. LOL. People are so dumb. You think if you rent you are avoiding property taxes and maintenance costs??

I own rental units, my renters pay the taxes, the maintenance, the insurance...all the costs PLUS something for me. Its a simple formula. Every landlord knows his costs and he calculated his rent to include them all. Property taxes go up, guess who gets a rent increase? Not me.

In reply to by Manipuflation

Endgame Napoleon yogibear Fri, 06/15/2018 - 03:00 Permalink

You think the 1,500 Millennials who responded to that trading survey might represent a skewed sample of business-minded people with good daydreaming skills?  

The Xers, most of whom are not in a better financial position than the Millennials, had more people with that millionaire-at-50 mindset. Gen X is the “greed is good” generation.

When I was 17, one of the people I heard claiming that she would be a millionaire by that age now works in the most menial of office jobs in late middle age. She works there after years of underemployment. She has a college degree, not with the word “Studies,” either. 

Since only 30% of Americans have degrees, the debt that most Millennials carry is not mostly due to college. They are pushing for debt relief tailored to the problems of the 30% of college grads in their own generation.

If they get it, they will find out that it does not mean anything, not when rent takes such a large chunk of monthly income, and substantial, non-temp, non-part-time, non-gig jobs are so scarce. A large part of the debt that Americans accumulate is related to churn jobs with no UC in-between.

In reply to by yogibear

shovelhead Lore Fri, 06/15/2018 - 10:17 Permalink

My son at 23 is making more than I did at his age with far more disposable income to save. He watches real estate auctions in his area for a hobby. Income property only, like duplexes, small apartment buildings and vacant lots to build on. I told him the ideal situation is to build a smaller duplex on a larger lot while he doesn't need a lot of room and build a single or a larger duplex later. New construction offers many benefits over fixer-uppers for a bump in the loan term. Fix it now or fix it much later 20 or so years down the line when you're making more money and banks are more willing to loan on new for better terms are the obvious ones.

Do the homework and the hard work and let someone else carry the nut and it's amazing how much you can save to pay down principle. Most people can't be bothered to take the time to learn how things work and would rather turn in their time and pay it out again in rent.

In reply to by Lore

ElTerco shovelhead Fri, 06/15/2018 - 13:14 Permalink

Owning is not always more profitable than renting. Depends on the area. My net worth is well ahead of most of my peers at work because I rented for 15 years and invested the money that would have gone towards mortgage and property tax. My rent was $1000/month or less over that period, while their mortgage+property tax was around $3500/month. Also, they got slammed when real estate collapsed, and I came in behind and bought my home with cash at the bottom of the market.

In reply to by shovelhead