Retirement
How Millennials plan to spend $68 trillion
Despite being known as a wasteful generation, Millennials are planning to use the $68 trillion in inheritance to set up their own financial future, new research has revealed.
How Millennials plan to spend $68 trillion
Despite being known as a wasteful generation, Millennials are planning to use the $68 trillion in inheritance to set up their own financial future, new research has revealed.
Results collated by deVere Group have shown that Millennials are typically financially worse off than the generation above them and are planning on using inheritance as a way of catching up to their parents.
Seventy-one per cent of Millennials, who were born into a time with slower wage growth, higher cost of living and less continually buoyant economic conditions will use their inheritance to top up their retirement income.
Nigel Green, deVere Group CEO and founder, pointed out that Millennials are steering away from the stereotypes.
“Millennials are often falsely stereotyped for their sense of entitlement and thought to be more financially reckless than other generations,” he said.
“But with seven out of 10 saying that their number one priority of the inheritance boom is to top up their pension pots, this myth is busted.
“The poll proves that Millennials aim to have the same or an increased standard of living for themselves and loved ones in retirement.”
While pointing out it is unlikely that the largest generational transfer of wealth will not be wasted, Mr Green warned younger Australians to plan for their own futures.
“Waiting on a windfall should not be anyone’s plan A. It could come too late, and other circumstances could make this a financially dangerous plan.”
“People need to save and invest for their future sooner rather than later through established financial planning solutions. The earlier you begin, the easier it will be to reach your long-term objectives.”
Mr Green noted, “The greatest wealth transfer in history is an exciting opportunity for Millennials.
“And it seems they are to be led by their core values, relationships and long-term goals to grow and safeguard their wealth.”
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