They want to find good jobs, buy homes, raise families and later enjoy a decent retirement.
It will be decades before these young adults reach retirement age, but recent research from the National Institute on Retirement Security (NIRS) finds Millennials are already concerned about their ability to retire.
“I think it’s in the back of everyone’s mind. It’s the elephant in the back of room no one’s talking about,” says 29-year- old Oakland, Calif., resident Ebony Young.
Although it’s been several years since Young graduated from Oregon State University, she is still underemployed making it hard to prepare for her future.
“I worry about my retirement because I don’t have a plan. Right now, I don’t qualify for my employer’s plan,” says the temporary warehouse worker.
Like Young, much of the Millennial generation is suffering from stagnant or decreasing earnings, as well as high debt from student loans, credit cards and medical bills. More than half of bachelor’s degree-holders under the age of 25 last year were jobless or underemployed.
Millennials are also less likely to have access to the three-legged stool of retirement? Traditional pensions, Social Security and personal savings? that provided retirement security to previous generations, according to NIRS researchers.
The NIRS study also finds Millennials want lawmakers to repair America’s broken retirement system by strengthening Social Security and creating a new pension system that would be portable and provide a reliable, monthly check to all those who contribute.
“The only thing I ever asked for in life is options. I would like to have a plan that I could pay into,” says Young.
Luckily, this Millennial, however, has an option. Last year, due in part to efforts of SEIU members,California Gov. Jerry Brown signed into law a bill to create the California Secure Choice Retirement Savings Plan. The new hybrid savings plan would act as a supplement to Social Security and build on positive attributes of traditional pensions and defined contribution plans.
Young describes Secure Choice as a “breath of fresh air.” Wouldn’t it be great if more Millennials were able to breathe easier knowing they could still pursue that part of the American Dream that allows you to retire with dignity after a lifetime of hard work and playing by the rules?
This article was originally printed on SEIU on May 20, 2013. Reprinted with permission.
About the Author: Austin Thompson is the SEIU Millennial Coordinator.