Retirement Savings – Millennials are ahead of their parents - AMAC & CNN Business
Who’d have thought it? There has been so much press in the last decade on how younger generations spend money in profligate ways, from the newest I-phones to streaming services to $20 avocado toast. But Nicole Goodkind of CNN Business cites a new study by investment firm Charles Schwab showing how Millennials are already stashing away funds in their mid-20s, beating their parents by around 10 years. But the author points out that one driver of this is many have such diminished expectations of retirement, particularly when it comes to Social Security. Student debt is still an issue. Other study findings include more than 60% of Millennials will prioritize travel in retirement, and Millennials noted they will dedicate less time to managing their finances and investments once they retire. Full piece here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.