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Millennials are now between the ages of 25-40 years old, and many of the earlier members of the generation are starting to think seriously about their retirement. They are currently a powerhouse in the workforce, but how are they in terms of retirement savings? How do they feel about crypto as part of their retirement plans? Some recent data sheds some light on these two topics.
Where Are Millennials on Retirement Savings?
Compared to previous generations, Millennials are saving at the same rate as previous generations, but they face a few challenges that may affect their retirement plans. They carry higher levels of student debt, which hinders their ability to save. Also, Social Security is expected to be paid out at lower rates, and they expect to live longer than previous generations. This means that they may need to be more aggressive if they wish to have a comfortable and secure retirement.
Millennials have lower total savings compared to previous generations, and it was found that 43% dipped into their retirement savings due to the challenges of the pandemic. By comparison, only 27% of Gen X and 11% of Baby Boomers had to dip into their retirement to make ends meet. Millennials face challenges, but they are still young enough to recover and come out ahead in the future, but it may take a different strategy than the slow and steady route.
Is Crypto in Millennial Portfolios?
Crypto is an investment that has shown some promise when it comes to building wealth quickly, but what do the Millennials think about crypto as a portion of their retirement portfolios? In a recent study, a survey of millennial millionaires found that they had at least 25% of their wealth in cryptocurrencies. Millennials are considered young or early adopters of cryptocurrency, with older generations lagging in their acceptance of it as a viable investment. In response, many banks and brokers are rapidly increasing access to cryptocurrencies to cater to this new demand for these products.
Millennial investors feel that NFTs are the next opportunity to hit the world of investing. Many from older generations do not even know what one is or how to use it. This indicates that Millennials see crypto as a long-term investment strategy and a valid addition to their retirement savings.
What Does This Say About the Future of Crypto?
Generation X and Baby Boomers tend to see crypto as a fad that will go away in time, but Millennials do not see it that way. Many of them were first attracted to the idea of cryptocurrency because of the volatility and media hype, but now, many of them are taking a serious look at it as a long-term investment. One thing that Millennials like about crypto is that they tend to favor anything that disengages them from the government and central authority figures. They like the idea of a decentralized currency that cannot be manipulated by big institutions. Nearly 40% of Millennials in a recent banking survey said that they planned to use cryptocurrency to purchase goods or services in the next 12 months.
In the world of cryptocurrency, there is still much to be put in place, such as regulations, tax laws, and other issues that need to be worked out. Currently, we can be considered in the early adoption phase of cryptocurrency. The Millennials and future generations will be the ones to determine cryptocurrency’s future. If the interest of the Millennials is any indication, it seems that most are long on cryptocurrency and see it as a viable part of their retirement plans. Millennials have a luxury that previous generations do not in that they still have between two and four decades before they will need the money. Millennials seem to have faith that everything will work out for cryptocurrency and that it is a part of our economy that is here to stay.
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