A Half Of Millennials Live Paycheck To Paycheck, Most Don't Think They Will Ever Be Millionaires

Zero Hedge ^ | 4AUG16 | Tyler Durden

[vannrox]

A Half Of Millennials Live Paycheck To Paycheck, Most Don't Think They Will Ever Be Millionaires

by Tyler Durden

Aug 3, 2016 7:59 PM

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In a stark refutation of Obama's "recovery" narrative, most millennials don't see a bright future for their personal finances.

Take the case of Shaun Luberski, a 21-year-old recent graduate of Temple University, who is skeptical she will be able to save $1 million by the time she retires. Ms. Luberski landed a full-time job as an account coordinator at Philadelphia magazine and works various side jobs in marketing and promotions. 

A big problem plaguing Shaun and millions of her peers: student loans. She lives at home rent-free with her parents in Levittown, Pa. But with roughly $30,000 in student loans to pay back, she isn’t sure she will ever be a millionaire.

“I hate my student loans,” she says. Because of them, she says she isn’t able to move out as soon as she would like and needs to carefully monitor how much she is spending each month on expenses such as Uber rides and meals out.

Which is odd, considering recently the White House was praising the "boon" to the economy that $1.3 trillion in student loans represents. No, really: the conclusion of the study was that "The main macroeconomic impact of student loans, particularly over the longer run, is via the boost to output and productivity form a more educated workforce." Perhaps not.

Sarcasm aside, Luberski is not alone: according to a study by market-research firm GfK, most millennials say they are skeptical they will ever be millionaires, a finding which according to the WSJ "reflects the tough job market and high student debt many young adults started their working lives with."

Wait, what tough job market? Hasn't the Obama administration also been pounding a narrative according to which the job situation is impeccable and the only "problem" with the current job market is that there are too many job openings and not enough qualified candidates. The fact that millions of students are raking up billions in student loans is precisely to make them more qualified to get those hard to get jobs. Just where are those hundreds of billions in loan proceeds going?

While it is unclear just who believes any of the economic stories spewed forth by the US president, what is clear is that 64% of working millennials say they will never accumulate $1 million in retirement savings over their lifetime, according to study released Wednesday. The study was conducted online between April 11 and April 26, 2016, by market-research firm GfK and surveyed more than 1,000 U.S. adults between the age of 22 and 35. Participants needed to be employed (not in the financial services/banking industry) and a U.S. resident for at least three years.

So why are most Millennials so quick to dismiss the "recovery" narrative? Low incomes, the gender wage gap and college loans are some of the reasons for millennials’ lack of optimism, according to the WSJ.

“There are some real headwinds facing this generation,” says Joe Ready, director of institutional retirement and trust for Wells Fargo. Those headwinds are heightened for millennials who earn low incomes and who aren’t working in their preferred career, he says.

Keep in mind, Millennials are now America's biggest generation. They now are also its most disenchanted.

Some more details on their financials: according to the study, the nearly two-thirds of millennials who say they won’t be able to accumulate $1 million report a median personal income of $27,900. The 32% who do expect to save $1 million report a median annual personal income of $53,000. Good luck with that.

Worse, according to the study 54% of millennial women reported they live paycheck-to-paycheck compared with 43% of men. Millennial men report a median personal income of $39,100 compared with $28,800 for women. 

There is a sliver of silver lining, with 59% of Millennial respondents saying they have started saving, however that brings us to even more bad news - it won't be enough. The report finds that millennials who have started to save for retirement, 44% report they are saving 1% to 5% of their income, 33% are saving 6% to 10% of their income and only 6% are saving 11% to 14%, which is the minimum amount they need to save to attain the desired 7-figure retirement amount.

And so, with such a bleak future to look forward to, we can understand why an entire generation's most merkatble skill is making selfies. Hopefully the next administration will think of ways to make that into a lucrative career.

[vannrox]

Not a viable future.

[freedumb2003]

>>And so, with such a bleak future to look forward to, we can understand why an entire generation’s most merkatble skill is making selfies. Hopefully the next administration will think of ways to make that into a lucrative career.<<

Combine the selfie and the suicide booth.

Takes care of the 2 biggest problems millenials have.

[2ndDivisionVet]

Millionaire households: Singapore has one in 10
http://www.tnp.sg/news/millionaire-households-singapore-has-one-10

[ecomcon]

Most people won’t become millionaires.

Until the hyper inflation starts, anyway.

[knarf]

Socialist indoctrination, from pre-school right on up to high school.

Here's a simple illustration of programmed laziness;

Remember the song Old MacDonald?

Remember as you built the list, each verse repeated the preceding list and added the new one?

(with an oink oink here and an oink oink there, moo moo here and a moo moo there, arf arf here and an arf arf there ... etc., e.g.)

pre-schoolers no longer get that simple memory exercise ...

Each verse is a stand alone

[Organic Panic]

Not bragging here. I was at one time a millionaire.... And at one time I was broke. Currently... I’m broke. That’s the nature of being self employed. I find it stressful BUT a valuable and normal part of growing and running my business. As much as i want to give up I pray and find more strength to keep going. Beans, rice, and ramen are as good now as they were when I was in my 20s.

The problem I see with the millenials is they EXPECT to be rewarded for no reason. They see someone like Zuckerberg make BILLIONS. They see all the silicon valley millionaires and expect their helicopter mommy will help them find their high paying million dollar a year job for doing nothing but ‘tweeting’ fashion tips.

My God. If I knew how hard it was to start, grow, and keep a business in the Obamaconomy, I’d quit and work at McDonald’s. In this economy I’d actually be able to retire comfortably with a McDonald’s pension.

[WENDLE]

These uneducated college graduates were cheated out of their future by GLOBALISM and sucking parasites!

[Secret Agent Man]

If Clinton wins I’d say their predictions are spot on.

[montanajoe]

Early on (50-60’s) I found I really admired those that had a bunch of kids, that went to work everyday and did what they had to do not only to provide financially for their family but giving them the emotional support that only a strong family can provide.

I think a lot of those lucky enough to grow up in that type of environment became Conservatives, those wishing for a million bucks became Dims

[gigster]

I’m sad to say my 25 year old daughter never inherited her father’s zeal for learning about conservative political philosophies and economics, and reading books. I just can’t reach her in the narrow thought confines of her college, Wayne State University, and the messed up mass culture of today.

[mrsmith]

Many 20 year olds have always lived ‘paycheck to paycheck’ from their own choices.
Now they have no choice.

[Trod Upon]

Exactly. They might all be starving trillionaires by 2018.

[Paladin2]

Hussein’s fault.

[duckbutt]

Don’t give up —when she leaves the cocoon of college and gets hit in the face with reality, she’ll probably realize how intelligent her parents are.....

[SVTCobra03]

Want to retire as a millionaire? Major in accounting or in STEM. As soon as you start working, contribute the maximum amount to your 401(k) match and later invest in a Roth IRA and when you can, invest in rental property in a college town.

[JBW1949]

The “millennials” better worry about even getting and holding a job if they allow Hillary to be elected...Never mind about being a millionaire...Just worry about being employed...

[major-pelham]

If she thinks 30k should stop her ascent she’s already beaten. Where’s the friggin gumption?

[ladyjane]

“I hate my student loans,” she says. Because of them, she says she isn’t able to move out as soon as she would like and needs to carefully monitor how much she is spending each month on expenses such as Uber rides and meals out.

LOL Sterilize her. She's not intelligent enough to raise children.

She is living rent free in her parents' house and too selfish to realize she is a parasite. A dumb one at that.

[super7man]

We trained both our kids to be entrepreneurs.

You have a vision.
You make a plan, minimizing risk, maximizing reward.
You execute the plan.
You reap the benefits or you learn something from your failure.

Both our kids are not yet 30. One is a millionaire and the other is on his way to being a millionaire.

We did not bank roll them either.

Millennial had their entrepreneurial spirit stolen by granting them, their every wish.

[38special]

Voting for Bernie Sanders or Hillary won’t help either.