Tips to Manage Your Retirement Income if you are 30-Something
In a recent survey from the Pew Research Center and the Federal Reserve Board’s Survey of Consumer Finances, it was discovered that, unsurprisingly, the opinion of U.S. citizens about their retirements is far less than optimistic. In fact up to 38 percent of people surveyed stated that they lacked confidence about their retirement income, an alarming increase when compared to only 25 percent of people showing the same lack of confidence in their retirement just three years ago. What is perhaps even more alarming is that those worried about their retirement are not even those who are about to retire, but also people in their 30-somethings, who affirms they are facing helplessness and depression.
Let’s take a look at what makes the current generation so concerned about their retirement even when it is still many years away.
– More concerns about the future: The older generations are now considering the current troubles of the economy and are paying much more attention to their retirement. As a result, they are trying to figure out what they need to achieve in order to be able to retire. Then, these senior citizens pass their knowledge to the younger generation who, when realizing that the current economy will make it a lot harder to achieve their retirement goals, become over-anxious and stressed. This of course does not come without reason, since the current economy is abound with all sorts of obstacles, like unexpected layoffs, drastic exchange rates and so. As you approach the 60’s however, the number of obstacles start to become lesser and lesser and seniors, surprisingly start to worry less about their retirement.
– The younger generations of the U.S. got hit really hard by the economic crisis and the decline in real estate prices that it brought. As a result, a lot of the young people in the U.S. saw their homes’ net worth decrease dramatically and heir investments dilute over time. On the other hand, that drop in home prices didn’t affect the 50-somethings nearly as much, since their investments are far more consolidated.
– The younger generations tend to depend and be influenced far more by the modern news and media. Young generations are far more engaged current news and consume it and create it at an incredible rate through traditional media and more modern channels as well, like Twitter, Facebook and such. On the other hand, this very same people in their thirties are the ones who let themselves be far more influenced by these type of news, which in turn has definitely contributed to the depressing and anxious mood that they are going through now.
– The younger generation is not saving as much as they wish and need to. With problems like high student loan and high personal loan debts, coupled with high unemployment rates and with the high inflation rates of past years, young people in their 30’s are find out that their money is no longer worth as much as it was a few years ago. The sad consequence of this is that the 30-something generation is being forced to make some compromises in their lifestyle, having to abandon many of the things they used to like to buy and to do.
Now we have seen all the causes that people in their 30’s have to be concerned about their future. However, this generation still has more than three decades to prepare for it. In tomorrow’s article, we will explore how the people in their 30’s can better prepare and be more optimistic towards their retirement.