June 3, 2022
Yahoo Finance has posted the results of a recent study which found that millennials want a different kind of retirement compared to their parents or grandparents. Most of them prefer travel over homeownership because they want the freedom to pursue their desired way of life and interests, rather than to achieve financial stability. This shift in mindset is probably due to the fact that millennials have come of age during difficult economic times.
Millennials are maturing, and many of them are prioritizing financial independence and starting to take retirement seriously. That said, many of them look for adaptability and new experiences rather than investing in traditional retirement funds. To their credit, millennials are already beginning to save at a much earlier age than the previous generations.
In contrast to their predecessors, they have distinct views about where their retirement path will lead and what it will resemble. And on the way to achieving these non-traditional objectives, millennials are seeking flexibility as well. They are less concerned with a specific retirement savings amount than previous generations. Instead of focusing solely on accumulating money, they consider the accumulation of finances as a process and want to follow their interests throughout their journey toward retirement.
How to Prepare for Your Desired Retirement Goal
Before considering the idea of retirement, check these tips on how to prepare for the retirement of your dreams:
- Save some cash: Creating a financial cushion to fall back on in case of unforeseen life circumstances is the first step toward preparing for the rest of one’s financial future. A few months’ worth of savings is a good place to start when opening a CMA.
- Grow it and protect it: It’s important to grow your savings and investments so that you can live comfortably on them, which is why some consider stock investing. However, don’t diminish what you’ve already achieved. There is no “sure thing” in investing, so don’t put yourself in a position of losing more than you can afford.
- Pay back your student loans: One of the biggest weights that millennials feel on their shoulders is student debt. As you think about your retirement, consider how you will pay off your loans; make sure to come up with a plan for repayment and stick to it.
- Find a new hobby: Considering a new hobby is always a great idea, whether you’re thinking about retirement or not. If you already have a unique hobby, you may start turning it into a profitable business. But first, you’ll need to figure out what you’re good at and how much potential it has to make money.
- Think long-term and short-term: Retirement planning is a time-consuming process that requires, patience, persistence, and adaptability in order to respond to any changing circumstances. Make a strategy, return to it at least once a year, and be ready to make changes along the way.