Millennials can’t seem to catch a break. We’ve heard all of the stereotypes at this point: they’re lazy, addicted to social media, and still live with their parents. They don’t have a good understanding of finances or they spend their money too frivolously on modern conveniences like hand-crafted coffee drinks and avocado toast.
And while there’s some truth to these stereotypes, these actions aren’t flippant, they are calculated. Affordable housing is difficult even for someone earning what was once thought to be considered a comfortable salary. Groceries and other essential items are being hit harder and harder by inflation, and yet income and wages aren’t adjusting to keep up.
The Economic Policy Institute reveals that surging prices mean wages buy less today than at any point over the past 66 years. Let that sink in for a moment.
To put this into further perspective, the value in real dollars is at its lowest level since 1956, when the lowest American hourly wage was 75 cents; the equivalent of $7.19 in 2022 dollars.
Millennials Are Pragmatic
Millennials aren’t children anymore, no matter what their parents think. The oldest millennials are now in their 40s, approaching peak earning years.
Some have children already, but many are delaying that until their late 30s and 40s, once again breaking the trend of Gen X and their Baby Boomer parents.
As the generation who has now lived through 2 economic recessions in their prime working careers, millennials have learned to be incredibly pragmatic along the way.
A recent survey from Forbes found that 58% of millennials have fully formed estate plans in place, which puts them ahead of Gen X and Baby Boomers already.
Most millennials are also prepared to work well after the mean retirement age, the same survey found. They are far more anxious about their future wealth and are concerned about ensuring their assets for their lifetime and their children’s generation.
Facing Anxiety Over Wealth Transfer
Entering the workforce during the Great Recession had many millennials doubting the financial system. Saving for long-term goals was immediately wiped out by pressing concerns like student debt, rent, and basic necessities.
As they’ve progressed into the workforce and accrued more income/higher salaries, this hasn’t quelled their anxiety completely, instead refocused it.
According to Forbes, more than 9 in 10 millennials are worried about their wealth transfer plans. Across the board, they are significantly more concerned about how their estate plans will impact the inherited individuals; will they be able to preserve and grow the family’s wealth, will the distribution disrupt the family unity, can I pass down wealth while still alive?
Millennials also have the reputation of being hesitant to seek advice, both personally and professionally. Many of their inheritance concerns could be aided with the expertise of financial advisors, but the side-effects of the Great Recession and the current economic downturn have unfortunately jaded many millennials.
Take Your Future Finances Into Your Own Hands
We aren’t financial advisors, but rather life insurance agents in the business of helping people. The team at Low Cost Life Insurance empowers people to make the best life insurance decision for your family’s future and will always represent your best interests. We NEVER sell you on what you don’t actually need.
Term life insurance is one of the many ways millennials can take ownership of their future wealth. In tandem with a solid financial plan, you buy the term, and invest the difference.
These plans are designed to answer those concerns that many millennials have for their future estate and retirement planning.
Term life is ideal for many during their prime working years, which many millennials are experiencing presently. The eventual goal is to self-insure the need for life insurance by investing in your retirement plan.
For many millennials, the anxieties of present and future finances may never be eased, but with strong allies in your corner, you can have longer moments of solace.
LCLI is always in your corner, and we’re available for you to better understand your term life insurance options. 1-877-794-TERM (8376).