Even though many fear their money will run out before they die
The good news is that the majority of us feel like we’re going to be OK financially for awhile.
The bad news is that “awhile” isn’t forever.
A poll from Morgan Stanley shows that most American investors, specifically 80 percent of millennials, believe they can reach their long-term financial goals. But in the same poll, two-thirds of Americans overall admit they think their money won’t last their entire lifetime.
Naturally, investors are more aware of their finances, so it’s not too surprising that they feel that they are on their way to meeting their money goals. But it’s noteworthy that they also feel that they will run out of money, just like the rest of us.
Among some of the top findings, it’s millennials that have some of the biggest financial priorities. Saving for retirement is No. 1, with 44 percent of young people making this their top goal, followed by paying off a mortgage (42 percent), and paying for a child’s education (35 percent).
The top concern among all age groups, from millennials to baby boomers, is having money last a lifetime (67 percent are most worried about this). More than half — 56 percent — are worried their lifestyle won’t hold up, and another 52 percent are afraid of paying off medical bills.
In general, the biggest long-term goals include saving for retirement (35 percent), being able to pass along wealth to kids and grandkids (33 percent), and paying off a mortgage (32 percent).
Outliving your money? It’s probably going to happen
The older you are, the more likely you are to feel like your money isn’t going to last you your entire life. Retirees are increasingly scared about being broke before dying, and since the world is running out of retirement money, it’s on us to make sure we have enough during our golden years.
But most of us don’t really care about saving for retirement. Some of us don’t even remember our retirement plans when we leave jobs. That’s probably because no one knows how their retirement plans work. While we say we care about retirement, studies show we don’t put those words into action.
Even though the Morgan Stanley figures show millennials are interested in saving for retirement, others are proving that young people aren’t saving much at all and if they are, it’s for things like travel.
With short-term goals overpowering long-term goals, Americans are realizing their fears are coming true the older they get. Since Americans are living longer than ever before, they should be investing in their golden years so their future selves can thank them later. Sadly, the lack of help for retirement savings from jobs — whether 401(k)s are offered or not — is hurting workers to the point that they are knowingly ignorant about their financial futures.
Of course, ignorance starts early. Young people who don’t know how to handle their finances probably stems from their parents who may not know how to handle finances. Bad habits continue to be passed down through generations, which means terrible money handling is only going to continue on.
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Article last modified on July 3, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Most Americans Believe They’re Going to Make Their Money Goals - AMP.