Generation Y Plans for Retirement
September 7th, 2010 -- Posted in Credit | Comments OffIt is no secret that those born in the 1980s will most likely never see a dime from Social Security. This of course begs the question “why are they paying into a system that will never support them?” The quick answer is because the government is forcing them to pay into the system. Armed with the knowledge that they cannot depend on Social Security the Y Generation is seeking alternate ways to prepare themselves for retirement.
The obvious choice for many employees is to participate in their employer’s 401K plan. This is a no brainer for those with a company match of any kind as it results in an immediate 100% return on investment. However, it is sad to say that many employees do not participate in the 401K plan, even if there is a company match, because they have not set themselves up in a position to save money. Now we are back to the problem of credit card debt that has destroyed the finances of the Y Generation and placed them at the mercy of their credit card companies. When that is combined with adjustable rate mortgages it is no wonder that the economic state of many countries is poor. continue reading »