Millennials Come of Age
After 25 years of debating the generation’s impact on the workplace, it’s time to forget everything we thought we knew about benefits.
COLUMBIA, S.C. E-Book —
Millennials are the most economically fragile generation in the workplace. In the years following the Great Recession, millennial households have seen their financial situation improve more quickly than other generations. Two-thirds of millennials report higher incomes in the five years following the Great Recession, compared to just half of younger Gen-eration X households and less than 4 in 10 older Generation X and Baby Boomer households.
But entering the workplace during one of the most turbulent times since the Great Depression
millennials have no shortage of economic concerns and worries.
The combination of higher incomes with the memories of family members and friends who lost jobs or homes has left millennials with an interesting perspective on finances. They’re the most concerned generation about building emergency funds, saving for large purchases, paying off education loans, maintaining a good credit score and following a monthly budget.
Between 2004 and 2014, when most millennials were of age to attend college, there was an 89 percent increase in the number of people taking on student debt and a 77 percent increase in average balance. The average balance for student debt now stands at $26,700.
But nearly one-third of millennials report having
no savings set aside for emergencies or to cover their expenses
if they’re forced to miss work. Only 23 percent of Gen Xers and 18 percent of Baby Boomers have no savings.4 This lack of savings may be driving a delay in marriage, starting a family and home ownership. Just 23 percent of Americans 18-31 in 2010 were married and living in their own household, down from 43 percent in 1981 and 56 percent in 1968.
These life events are traditionally seen as drivers for insurance purchasing decisions. When people get married, have a child or buy a home, they have more to protect or worry about.
In fact, half of millennials say they would struggle immediately to cover everyday living expenses if the primary wage-earner in their household died.
MILLENNIALS’ SINGLE BIGGEST
FINANCIAL CONCERN
- 22% were concerned about paying bills
- 12% burdening dependents when I die
- 12% monthly income for a comfortable retirement
- 9% paying off debt
Photo below taken of Pamela at our new client: The Alaska SeaLife Center in Seward, AK!
