Why Millennials Need to Rethink Retirement

Retirement is a fairly new concept, and with changes like launching Social Security in 1935 and then the 401(k) and IRA in 1978, modern day retirement is less than 50 years old. It's an evolving concept, and that means we as millennials have to approach it differently than our predecessors.

Rather than get one job you endure for 30 years, what if we built a life we didn't want to escape from right away? What if we could do a blended model of retirement that's enjoying life in all the years leading up to this second act?

Today, we're digging into the why and how of approaching retirement as a millennial, including some math to help us break it down.

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Mentioned in the Episode

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Follow Money with Katie!

0:00 Intro
2:40 How do you build a life you don't need a break from?
5:30 Calculating your retirement needs based on your age
7:04 Identifying a goal
10:15 How close are you to your long-term goal?
12:08 Credits

#MoneyWithKatie #Millennials #Money #PersonalFinance #Retirement #Investing

[brucebanksshow]

Gone are the days of 40 minute episodes 😢

[DrDRE]

In 1974, ERISA made companies responsible for the retirement plans of their employees. Before that, all those retirement plans could go away if the company closed. I didn't know that company pensions can just "go away". -- YouTube David Hoffman I Want To Retire I Can't Here's Why --

After ERISA, companies said "heck with this", "were going to make employees be responsible for their own retirement program". That's when 401Ks, IRAs and the like began. 401Ks and IRAs have been a colossal failure for retirees. It hasn't worked out for the workers because wages haven't allowed them to save after the cost of living. Even though Productivity has gone up, wages have not. This started in 1981. A chart comparing productivity and wages will illustrate that. Most have less than $100K saved. This will be a huge problem with future retirees.

Local, State and Federal retirement systems are worth gold today. I think the Federal systems are pretty safe because they’re backed by the US as a whole. Some State programs are in definite deficits and local programs will be dependent on property and sales taxes (until the populace revolts).

[engyolyonline]

The compound interest calculator is not linked

[dc]

Why do you tube financial/retirement experts always frame retirement as a competition between the generations? Financial well being, building wealth, retirement isnt a competion between the generations. Its a long process of being better everyday, and improving the person you see in the mirror everyday.

[markusklyver]

That's a lot of words for "Gen Z should work until they die"

[burtking]

Speaking as a boomer here - We had to worry about all of these things too. While a very few did have a pension most of us never heard the word pension in an HR welcome meeting. My folks had their pensions dropped by employers after working their 20+ years - yeah, that happened. Welcome to being an adult - this is your problem to solve.

[BearingMySeoul]

Soooo basically, live life like people do in the Caribbean. Got it.

[kryptk.]

My goal is to figure out how I can work and provide for myself without paying $0.01 to this country

[jose]

I stopped listening after she mentioned a retirement savings over a million dollars, very out of touch with America! The average blue collar worker today has roughly 50k saved up in a 401k and most young people have much less there is no way they could even get in the millions of dollars!