Millennials are Less Prepared for Retirement Than Previous Generations

Millennials are much less prepared for retirement than previous generations, finds research from the Center for Retirement Research at Boston College.

The study says Millennials are those born from 1981-91. Millennials are the first generation to grow up with computers, tend to have more attentive and supportive parents and are more ethnically diverse than previous generations.

According to the study, Millennials aren’t as prepared for retirement due to a multitude of reasons: they earn less than previous generations, they are less likely to receive fringe benefits through their employer, like health insurance and retirement, there’s a lower percentage of Millennials participating in a retirement plan and Millennials are dealing with a increase in student debt due to the rising cost of college tuition and a greater number of people pursuing higher education.

The study says the good news is retirement is still a long way off for Millennials and financial market returns and savings patterns can change things. At the same time, Millennials’ retirements will depend on the preservation of Social Security and the possible expansion of retirement savings plans in the workplace.