Millennials: It pays to rethink the Boomer approach to retirement

To paraphrase one of the great musings of the American businessman and investor Charlie Munger, you don’t have to touch an electric fence to learn not to do it. In other words, it’s better to learn through observation and the mistakes of others than through making the mistakes yourself.

For this reason, Millennials should take note of the situation many Baby Boomers find themselves in today as they near retirement age.

Lately, headlines about America’s impending retirement crisis are becoming more frequent, and they revolve around the fact that on average, the Baby Boomer generation is significantly under-saved for retirement.

Fortunately for them, it looks that they are likely to continue to receive at least some level of Social Security benefits, at least for now. Some also have pensions. This will cushion the retirement blow.

Our Millennial generation is not likely to be so lucky. Pensions are almost completely a thing of the past. Social Security is in a tenuous position, and while it may work out fine, it’s not wise for us to count on it.

For us Millennials, funding retirement falls squarely on our shoulders, and thankfully, it’s not too late to reframe the way we think about retirement so we can avoid making the same mistakes that our parents’ generation did.

So, what does this mean for us? Here are a few tips to ensure Millennials position themselves well for retirement despite these obstacles.

 

You can read the other half of this article on USA Today here: http://usat.ly/2nn2HQP

2017-04-07T19:42:34+00:00

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