Many Americans are falling way short of the goals required to retire comfortably. Millennials are most at risk of being unable to afford essential retirement expenses such as food, shelter, and medical care, according to a Fidelity Investments survey released Wednesday.
This shouldn’t come as much of a surprise, especially considering the financial landscape. The situation for millennials is not only sad, but very alarming, as many will not be able to take of themselves come retirement time.
According to CNN Money, baby boomers (born 1946 to 1964) are on track to reach 81% of their retirement income needs. Generation X-ers (born 1965 to 1977) are expected to reach only 71%; and Generation Y or millennials (born 1978-1988) have the largest projected income gap at 62%.
While it may not seem like much, a 19% difference between baby boomers and millennials is actually huge. Millennials will not be able to afford proper housing, health care, and other basic things in retirement.
The survey questioned a little over 2,000 Americans about retirement, health, and saving & spending habits.
What makes the survey numbers even more interesting is the fact that millennials are playing it much safer with their money compared to what baby boomers did. Fifty percent said they had less than half of their investments in stocks. Common rules of thumb recommend that 30-year-olds have up to 90% of their portfolio in stocks, since they have decades of savings ahead of them.
Whether you are a millennial or not, are going to have enough to retire? Check out this very helpful retirement calculator and see if you are on-track to a proper retirement.
More on Millennials: WikiPedia