Americans aged 30-40 are the ‘biggest losers’ in US society — here’s why

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Americans aged 30-40 are the ‘biggest losers’ in US society — here’s why

A quick

This is the hidden content, please

• Sign In
• or
• Sign Up

search reveals that millennials are often characterized as entitled whiners who are quick to complain about their financial struggles — but it’s not a fair assessment.

There’s a reason why millennials — typically defined as between the age of 28 and 43 — are on shakier financial ground compared to previous generations.

Recent

This is the hidden content, please

• Sign In
• or
• Sign Up

from Allianz highlights the difference between millennials and boomers from an economic standpoint.

It shows that, while boomers have been able to benefit from periods of strong economic growth, millennials have been hit with one financial crisis after another since reaching an age when it was finally possible to start saving and growing their wealth.

According to a

This is the hidden content, please

• Sign In
• or
• Sign Up

from the ********* Journal of Sociology, the average millennial has 30% less wealth at the age of 35 than boomers did at the same age.

Here’s how society’s “biggest losers” can get ahead after multiple setbacks.

Millennials have had a number of economic factors working against them over the years.

During the Great Recession, which lasted from 2007 to 2009, millennials — many of whom were in their 20s at the time — were impacted by high levels of unemployment, making it ******* to not only build careers, but set aside savings and keep up with student loan payments.

With student debt, millennials weren’t helped by the fact that college costs rose exponentially in the years leading up to their postsecondary education.

The Education Data Initiative

This is the hidden content, please

• Sign In
• or
• Sign Up

that the average annual cost of a public four-year institution was $514 in 1973-1974, when many boomers were in attendance.

However, by the 2003-2004 academic year, when many millennials attended, that cost had increased to $4,587. This left millennials with high levels of student debt, a struggling economy, and a slow economic recovery that would ultimately last years.

In October 2009, the national unemployment rate reached 10%,

This is the hidden content, please

• Sign In
• or
• Sign Up

the Bureau of Labor Statistics.

Three years later, though, it was still at 7.8%. By contrast, boomers who entered the workforce in January 1970 enjoyed an unemployment rate of only 3.9%,

This is the hidden content, please

• Sign In
• or
• Sign Up

the Federal Reserve.

Story Continues

Following the Great Recession, millennials found themselves trapped in a low interest rate environment.

Not only did the Federal Reserve’s benchmark interest rate fall to record lows during that crisis, but it remained stagnant for more than five years afterward, making it ******* for millennials to grow their savings.

Interest rates were far more conducive to savings during the 1970s, allowing boomers to build up cash reserves,

This is the hidden content, please

• Sign In
• or
• Sign Up

from the Federal Reserve shows.

Although the pandemic impacted people of all ages, millennials had been slowly digging themselves out of debt and furthering their careers when they once again found themselves plagued by rampant unemployment and sky-high inflation.

Read more: Cost-of-living in America is still out of control —

This is the hidden content, please

• Sign In
• or
• Sign Up

It’s not all ***** and gloom for millennials. The good news is that, at this point, they’re likely further along in their careers, giving them an opportunity to boost their earnings and savings.

Even the eldest millennials today may still have another 20-25 years in the workforce, giving them an opportunity to ramp up

This is the hidden content, please

• Sign In
• or
• Sign Up

or

This is the hidden content, please

• Sign In
• or
• Sign Up

contributions and invest their money so they’re able to accumulate robust

This is the hidden content, please

• Sign In
• or
• Sign Up

in time for retirement.

Personal finance celebrity Suze Orman said there’s one simple way younger generations can grow their wealth.

“Their priority is their youth, their priority is time,” Orman

This is the hidden content, please

• Sign In
• or
• Sign Up

Moneywise last year. “If there’s anything the younger generation needs to understand, it’s that the key ingredient to any financial freedom recipe is

This is the hidden content, please

• Sign In
• or
• Sign Up

.”

For example, if you start saving $100 every month at the age of 35 — with a 12% annual average rate of return — you’d have $300,000 by the age of 65, Orman explained.

While this far below the estimated $1.46 million Americans need saved in order to retire comfortably,

This is the hidden content, please

• Sign In
• or
• Sign Up

Northwestern Mutual, it’s still a significant chunk of money that can help millennials make up lost time during the times of financial crises they’ve lived through.

Another way ********* millennials can make up for lost time is through real estate. This powerful tool can be used whether you’re a homeowner or choose to invest in

This is the hidden content, please

• Sign In
• or
• Sign Up

.

The latter is a popular investment tool that acts as an alternative to buying real estate directly. It’s beginner-friendly because it’s possible to invest in REITs with small amounts of money.

While millennials have had a tough economic run, their situation isn’t entirely hopeless. If economic conditions can turn around in their favor, they have a prime opportunity to make the most of their next couple decades in the workforce.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Americans #aged #biggest #losers #society #heres

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up