Millennials are actually out-saving other generations. CNBC reported on Tuesday that millennials are saving but not to retire one day. 63 percent of millennials are saving for economic freedom and a desired lifestyle, but not for retirement. Comparatively, 45 percent of Gen-Xers and Baby Boomers save money in the same way.
Only 37 percent of millennials are saving for retirement while 55 percent of older Americans are doing the same.
“Young adults tell us they are willing to do whatever it takes to achieve freedom and flexibility, even if it means working for the rest of their lives,” said Aron Levine of Merrill Edge, the firm that did the report.
Millennials don’t care about getting married and having children like older generations. They’d rather spend money on travel, dining, and fitness than saving for retirement.
While saving money and not resigning yourself to a life of debt and credit cards like previous generations is great progress for millennials, planning for the future in the long term is essential.
Eventually, every millennial getting sleeve tattoos, spending a year of savings to have brunch in Singapore, and eating avocado toast for breakfast will get old and the lifestyle that they have been living for won’t be physically or financially possible.
Maybe that’s fine for some, but most fellow millennials need to wake up to the reality and biology that this is the time to enjoy life but also to prepare for a time when life won’t be so enjoyable.