{"id":2065,"date":"2018-10-17T12:36:51","date_gmt":"2018-10-17T17:36:51","guid":{"rendered":"https:\/\/www.rixtrema.com\/blog\/?p=2065"},"modified":"2018-10-17T12:41:19","modified_gmt":"2018-10-17T17:41:19","slug":"main-reason-why-millennials-are-not-investing-in-retirement-enough","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/main-reason-why-millennials-are-not-investing-in-retirement-enough\/","title":{"rendered":"Main Reason Why Millennials Are Not Investing in Retirement Enough"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2066\" src=\"https:\/\/www.rixtrema.com\/blog\/wp-content\/uploads\/2018\/10\/lead_720_405.jpg\" alt=\"\" width=\"720\" height=\"405\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/10\/lead_720_405.jpg 720w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/10\/lead_720_405-300x169.jpg 300w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/p>\n<p><span style=\"color: #000000;\">It seems a recurring theme in the 401k industry is the problem of younger generations not investing as much as they should. Plenty of studies have published reasons why, and they all seem to come back to the same answer. <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/401kspecialistmag.com\/too-many-young-people-still-believe-retirement-saving-can-wait\/\">401kSpeciailstMag<\/a><\/span> cites a recent Navient (a U.S. student loan servicer) study where they give us some not so surprising findings: debt is a key factor when it comes to the younger generation not investing enough.<\/span><\/p>\n<p><span style=\"color: #000000;\">To summarize these findings:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Young adults with a college degree are more likely to save for retirement<\/span><\/li>\n<li><span style=\"color: #000000;\">Young adults that have paid off their student loans save more for retirement<\/span><\/li>\n<li><span style=\"color: #000000;\">Of young adults with student loans, those that prioritize paying off their loans report feeling more confident in their financial health than those that prioritize saving for retirement<\/span><\/li>\n<li><span style=\"color: #000000;\">Those with an employer matched 401(k) are nearly 2x as likely to save for retirement, and those with access to 401(k) plans will save even more than those without.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">So it seems that these results are pretty much in line with what you would expect. Young adults with higher education and more access to retirement plans are generally a lot more likely to be saving for retirement. Additionally, having student loan debt is a major factor to young adults when it comes to saving for retirement. Those with debt are a lot more likely to be prioritizing that debt and will naturally feel more comfortable when they pay it off.<\/span><\/p>\n<blockquote><p><em><span style=\"color: #000000;\">\u201cHere\u2019s a shock\u2014people tend to favor instant gratification over delay and discipline.\u201d<\/span><\/em><\/p><\/blockquote>\n<p><span style=\"color: #000000;\">Some may classify paying down student loan debt as \u201cinstant gratification,\u201d but it\u2019s definitely no small thing and the data shows that it\u2019s one of the biggest factors for young people\u2019s financial concerns, which is really no surprise.<\/span><\/p>\n<p><span style=\"color: #000000;\">Proper education to younger <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.rixtrema.com\/blog\/the-importance-of-explaining-401k-related-calculations-to-plan-participants\/\">plan participants<\/a><\/span>, especially those with student loan debt, is crucial to making sure they can adequately prepare for retirement. Being able to balance living expenses, debt, and saving for retirement can certainly be a struggle, so it\u2019s important for a plan advisor to make sure their participants know how they should be saving.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It seems a recurring theme in the 401k industry is the problem of younger generations not investing as much as they should. Plenty of studies have published reasons why, and they all seem to come back to the same answer. 401kSpeciailstMag cites a recent Navient (a U.S. student loan servicer) study where they give us&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/rixtrema.com\/blog\/main-reason-why-millennials-are-not-investing-in-retirement-enough\/\" class=\"excerpt-read-more newsstand-button\">Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":2066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[224],"tags":[],"class_list":["post-2065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-plan-participants"],"jetpack_featured_media_url":"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/10\/lead_720_405.jpg","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.9.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Main Reason Why Millennials Are Not Investing in Retirement Enough<\/title>\n<link rel=\"canonical\" href=\"https:\/\/rixtrema.com\/blog\/main-reason-why-millennials-are-not-investing-in-retirement-enough\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Main Reason Why Millennials Are Not Investing in Retirement Enough\" \/>\n<meta property=\"og:description\" content=\"It seems a recurring theme in the 401k industry is the problem of younger generations not investing as much as they should. 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