If a GenForward poll conducted by University of Chicago’s Black Youth Project is to be believed, about 48 percent of Americans between 18 and 30 years of age lack a single penny in retirement savings. The respondents also had no access to any standard pension schemes. This poll was conducted in collaboration with Associated Press-NORC Center for Public Affairs Research. It is to be noted that the youngest among those polled will likely to be in their schools- but the findings hold true even for those respondents in late 20s. Approximately 40 percent of respondents aged between 25 and 30 have zero savings for retirement.
Less security net
Adding the problem is that these young people will receive much less in the form of social security benefits compared to their grandparents or parents. A quick glance shows that the age in which the Social Security benefits are to be given is now raised from 66 to 67. The matter gets the more troubling when a considerable percentage of young Americans say that does not have faith in Social Security. About 28 percent of the respondents expressed the view of partial confidence and only five percent say they are extremely confident.
These Americans are part of a generation whose retirements in their futures will be financed by their personal savings. This is due to the fact that the standard pensions are becoming rarer by the day. Only about seven percent of the surveyed said that they will receive pensions of the kind which means a set amount post retirement.
A greater number of employers now want to push their personnel to begin their retirement savings. This is being done by the automatic enrollment in the 401(k) plans. More employers are doing this every passing year-from 27 percent in 2015 to 41 percent in 2016. However, to get this kind of benefit, the person have to get a kind of job which offer 401(k) and many believe it is hard to find a job which gives such advantages.
Even in such a bleak environment, a considerable section of such young US residents expressed the confidence that there will be enough money to retire as and when such a need comes. These positive vibes are present across almost all ethnicity, with the exception of Latinos. Only 43 percent of the last polled group expressed their confidence.