61% of young adults confess they are not saving for retirement

It’s behind a soft paywall so here’s the whole article.

In a damning indictment of the financial state of young adults in the United States, a recent study has revealed that a staggering 61% of those aged 18 to 34 are not saving for their retirement. This startling statistic lays bare the harsh reality facing a generation grappling with a perfect storm of economic challenges.

People in the United States are facing significant financial challenges:

1. Nearly 41% of young adults perceive the economy’s current condition as “poor”, while 38% consider it “fair”

2. 55% of young adults are not planning to purchase a home this year, despite a recent decline in interest rates

3. 61% of young adults confess they are not saving for retirement

4. 34% of young adults maintain a side hustle to supplement their income

5. 56% of young adults acknowledge that inflation primarily affects food, outweighing other categories like rent (17%), discretionary items (12%), and utilities (8%)

6. 53% of young Americans assert that cost is the primary factor when selecting a meal

7. In August 2023, one in five young adults with credit cards living in majority-Black communities was delinquent on a credit card bill, indicating high financial distress

8. Credit card delinquencies increased by 22.6% and 31.9% among young adults in Black and Native communities, respectively, compared to 17.6% among those in majority-white communities between 2020 and 2023

9. Nearly 1 in 10 young adults had trouble meeting their financial obligations in 2023

10. 41% of young adults acknowledge that the economy significantly influences their major life decisions, such as marriage and starting a family, “quite a bit”, while 25% admit it impacts these decisions a “huge amount”

What Happened?

One cannot help but wonder, where did it all go wrong? How did we arrive at a point where the majority of young Americans are willfully ignoring the looming specter of their golden years? The answer, my friends, lies in the very fabric of the society we have constructed — a society that prioritizes instant gratification over long-term financial security.

We live in an age where the siren song of consumerism beckons from every corner, tempting us with the allure of material possessions and the false promise of happiness. Young adults, burdened by the weight of student loan debt and the ever-increasing cost of living, find themselves caught in a vicious cycle of paycheck-to-paycheck living, with little to no room for saving.

But let us not forget the role of our leaders, those who have the power to shape the economic landscape. Where are the bold initiatives to address the student debt crisis? Where are the policies that incentivize saving and promote financial literacy? The answer, once again, is painfully clear — they are nowhere to be found, lost in the cacophony of partisan bickering and corporate interests.

As we gaze upon the bleak future that awaits a generation unprepared for retirement, we must ask ourselves: what kind of society do we want to leave behind? A society where the elderly are forced to choose between heating their homes and putting food on the table? A society where the promise of a comfortable retirement is nothing more than a cruel joke?

It is time for young Americans to wake up and smell the bitter coffee of reality. It is time to take control of their financial futures and demand better from those who claim to represent their interests.

But this is not a battle that can be fought alone. We must come together as a community, as a nation, to address the systemic issues that have led us to this point. We must demand that our leaders prioritize the financial well-being of the people over the profits of corporations. We must educate ourselves and our peers about the importance of financial planning and the power of compound interest.

The road ahead may be long and arduous, but the alternative is unthinkable. We must act now, before it is too late, to secure a future where the promise of a comfortable retirement is not a mere fantasy, but a reality for all. The time for action is now, and the stakes have never been higher.

Acquire pensions.

Retire
Early.

I was going to retire at 44 had trump stayed in the WhiteHouse. Delayed that about 5 years.

Don’t buy stupid stuff. Live frugally.

Thanks a lot, Biden

I want to say fuck 'em, not my problem. But it will become my problem

They are waiting for UBI.
Really that's the plan they are being told.

A slightly veiled propaganda piece about how the government should save college grads from the unfair debt and become the nanny state that is fair and pleasing.

No shit, they can't afford it.

That's because it's probably going to happen

One world government is inevitable

Why did boomers not offer pensions to millennials like the Greatest Generation did for them?

Today is the good old days of tomorrow.

Wall Street

A mob will always win regardless of anything.

They're not worthy.

Sounds like poor parenting

Who would continue to trade 40 hours or more a week to earn less after taxes than the welfare folks get with UBI?  

Nobody would.  And then all the tax revenue evaporates.  So where will the money for the UBI come from?

I will tell you right now that if they do UBI, I'm not going to throw away the rest of my life working to make as much or only a tiny bit more.  

If you combine every tax we pay, from federal income tax, capital gains, state income tax, property tax, sales tax, cell phone tax, gasoline tax, and on and on, the total is WAY MORE than half of what we earn.

I quit saving for retirement once I saw my 1 yo swing his fisher price golf club in the living room. The kids a natural and will definitely be rich and famous.

And no one is surprised..

Have young adults as a whole ever saved for retirement? I received a pension, but didn't put a dime into my 401k untill my 30's and didn't really bump it up until my 40's. It's a lot easier to save when you're not buying your first house and raising kids while at the same time in your lowest earning point in your career.

Well, that would explain a large part of why they have such a dismal view of their future.

Its not just some young adults. I have nothing saved for retirement. 47.  Child support for the past 16 years and bouncing from lower wage jobs took care of that one for me.

It’s tough to save for retirement when the US economy is flirting with stagflation.  The only other time we’ve had it was the oil embargo in the 70s.  We’re a different country now than we were back then.  We’ve been hollowed out, and it’s going to get worse because no one in power has any interest in making the tough decisions necessary to fix things.

Maybe another few dozen billion to europe will solve the problem.

There will still be people working who want more .
You will always have classes of people ..hell even Star Trek did


I don't think most posting in ARFCOM will be alive to see it but some young members might . I don't think you or I will be alive but

50 years from now there is going to be a shit ton of automation where a lot and mean a lot of jobs are eliminated

I won't see it

I prefer my veils just a touch less opaque.

Lol..."But let us not forget the role of our leaders, those who have the power to shape the economic landscape. Where are the bold initiatives to address the student debt crisis?"

Meh, im not wasting my life hoping I'm both alive and physically able to enjoy retirement, seen plenty of the people telling me to save every penny and live frugal keel over before being even able to retire.

No idea, but I didn't get serious about money 'till about 30.

Pressuring people in their teens and twenties to live up to some fantasy world isn't helping.

I think that is fairly common. There are maybe 2 people at the office who started early. A single MGTOW and another guy who has a NP for a wife. The new hires in their 20s don't even bother. The 30 somethings are all forking out too much for kids, cars and house renos to even have an extra buck to save.

It was hard on me through my 30s being in the same boat. But managed 2-5% depending on the year amd that adds up better than 0. Now full max out and using other avenues to stretch it out.

Right on. The smartest people prepare for retirement by paying into their fund and then learn to live on the rest. It took a few missteps until I realized what they were doing. I started doing the same thing and it made a huge difference. Also l learned to live debt-free.

I went this route.  My wives spent money as fast as I could make it.  

Fortunately, my pensions survived intact, and in the last five years of employment I was able to put a nice chunk in the market.  Hopefully, my daughter will inherit it for her retirement.

Saving for retirement with this much inflation is retarded. Inflation will outpace anything you save or invest. Buy stuff you actually need that will last you or stuff that will actually hold value.

Because there was only a small portion of time in the existence of humanity where that was even tenable for such a large group of people.

It's nearly over now.  We'll have to move to a new way to prepare ourselves for when we reach the age we're no longer able to work.

There are a lot of boomers who have very small pensions or no pensions. I am one of the older boomers and pensions were being phased out when I started working. Pensions are a defined benefit and it soon became evident that funding them was unpredictable and very expensive. It was much simpler for companies to contribute to a 401k type defined contribution plan.

I would be surprised if this was a new trend. I think the majority of young adults live paycheck to paycheck or struggle. I read recently that Phi Delta Alpha and Kappa Phi members make up the largest percentage of the top 10% wage earners. Not sure what that means but membership has its advantages.

Only 41%?  It kinda sucks right now.

Recent decline? In the last year the interest rates surged to the highest they have been in 17 years.
The fed rate has not gone down a single time in the last 2 years.

This is just fear-mongering BS article.

eta: not gonna feed the troll.

What took you so long? Someone stopped saving when their infant daughter woke them up by crying at night. They soon realized their precious little girl was destined to be the next Taylor Swift. Why work when your little girl would be worth billions?

I honestly think that’s why they are allowing the massive influx of illegals into America.  Birth rates are down and someone has got to take care of the next generation of welfare leeches.

I first started saving for retirement at age 22 under with advice from my older co-workers and seeing my parents' situation. I've kept it up over the years by listening to my older co-workers stories about wishing they could afford to retire. Thank god for those old dudes pointing the young guy in the right direction.


Had a co-worker that retired at 74 with only a company pension and social security. He was a good instrumentation electrician and never started any other savings accounts.

The problem with 401k plans is that most people will contribute the bare minimum or nothing at all. I was pushing for a 401k plan at work but most of the staff and several middle managers would not contribute. Even some on the executive committee did not want to participate. That was a real shock to me. We did have a profit sharing plan and the executive committee had phantom stock.

You realize these young people will eventually become the politicians who make the decisions right?


I would plan ahead knowing that.

I didn’t start retirement savings till I joined ARF, nobody taught me shit about it.

Retirement is becoming a thing of the past. That’s what I am projecting. Companies that once had both 401ks and pensions are slowly doing away with both. So in a way i understand, as a millennial myself or what ever category i fall under
It’s a challenge for the average middle class millennial to save for retirement. They can’t afford it. I am blessed to have saved in my 401 k and will continue to max it out. I wished I would have started earlier but it is what it is. I am looking into other things that will supplement when I reach retirement age if they don’t completely abolish retirement altogether.  I believe we are heading down the socialist/communist way of things and don’t expect this to improve.

Woodrow Wilson, FDR, LBJ, and every President that can’t balance a budget. Also outsourcing manufacturing hasn’t done wonders for the middle class either.

The illegals are here for what hey can send back home and then leave.

How could you save with costs like they are?

politicians are fucking us worse then they ever have.


I also think the young are waiting for UBI/Socialism.



this country is dying.

Define "young adult".

you can save all you want and drop dead when you retire, or before.  

happened to my mom.


enjoy life.

Sexual revolution in the 60s.

I started putting money into the TSP a little later than I should have.  I was ~25.  Most of my raises over the past 10 years have either gone to savings or added to TSP.

This.

We have yet to see how far down the dollar will go. I expect Wiemar Republic inflation in our near future.

Sorry for your loss. My mom passed about five years before I retired. She and my dad both planned and saved for their retirement. They did not need Starbucks every morning or any of the other things people seem to need today to enjoy their lifetime. Dad lived to 86 and mom was 94. They were not rich but they weren’t poor either. They just had a good sense of what was important and not important. I hope they passed it on to me.

I am comfortable in my retirement. I also don’t need to pickup Starbucks everyday. Not to pick on  Starbucks because I make it at home and like their coffee. I get more enjoyment out of seeing the grandkids play than from anything I could buy myself.