MASON CITY, Iowa - A new report says that millennials are either not saving enough or saving at all for retirement.
According to the National Institute on Retirement Security, 66 percent of millennials, who are between the ages of 21 and 32, are not setting aside any money at all for retirement, while 33.9% are. In addition, there is a difference between races in saving: 82.9% of Latino Millennials are not saving any money for retirement, compared to 70.3% of Blacks, 67% of Asians, and 59.9% of Whites.
Danielle Pace, branch manager at Clear Lake Bank & Trust's west Mason City branch, and an older millennial herself, says she isn't surprised by these findings.
"Millennials have a higher rate of student loan debt than any other generation before us, so a lot of money is going towards that. I also think that millennials are typically the generation that are impulsive. They're saving money, but not necessarily for retirement," Pace says.
Pace also believes that millennials' priorities are based on wants instead of needs.
"They want to travel. They want to buy a house. They want to have a good career. They're saving for other shorter term goals instead of retirement, a long term goal," Pace adds.
However, Scott Hegeston, a junior at NIACC and a younger millennial, says that regardless of status, it's important to save for retirement.
"It's best to start saving as soon as you can because you're going to need it. And if something falls through or something happens, you're going to want some money to hang on to," Hegeston says.
Millennials have stated in the report that the reasons for not saving are because of higher cost of living, not being able to meet minimum eligibility for a workplace retirement plan, and as mentioned previously, higher student debt. In addition, the report stated that millennials entered the workforce at a time of stagnant wages and high unemployment.