8/15/2023 0 Comments Gen z age range today![]() ![]() "And that's how you start to have a conversation about both near-term and retirement goals."īeyond saving in a traditional or Roth IRA and a 401(k), Hafeez recommended that Gen Z consider other investments like real estate that provide cash flow. So to think about that then you have got to start doing goal-setting and goal-planning," she said. "So it's about five years, 10 years, 20 years, and then retirement. Gokhale asserted that a planner could help Gen Zers navigate goals like getting married and starting a family, putting their kids through school, and in the long term, retirement. The Northwestern Mutual study found that "people who identify as disciplined financial planners knock two years off their retirement age," while "non-planners add two years." If they really want to retire at 60 and plan for 40 golden years to follow, they just need to be realistic about achieving their retirement goals.įor instance, Gen Zers should meet with a financial advisor and come up with a plan tailored to their individual needs, said Aditi Javeri Gokhale, chief strategy officer, head of institutional investments, and president of retail investments at Northwestern Mutual. Still, there’s no need to fully burst Gen Z’s retirement bubble, these experts said. "If you think all I have to pay for is rent and utilities and food, that's a different life than the rest of us that are thinking, ‘I've got property taxes to the county’ and the older you get, the more nuanced finances become." "I think there's that cusp where they're on the edge of adulthood and they're starting to make money…but I don't think they've kind of been fully immersed in some of the adult minutiae of life," she said. Many may still rely on their parents to cover expenses like phone bills and aren’t aware of other costs that emerge as people age. Younger generations may often fail to appreciate the expenses of day-to-day living, Jen Grant from Perryman Financial Advisory, said. "I don't think they don't fully appreciate the cost of life and the effect of inflation over 40 years," she said. If someone wanted to live off $4,000 a month after taxes for 40 years - taking into account 3% inflation and a return on invested retirement funds of 6% - they would need somewhere closer to $4 million, she said. Linda Farinola, founder of Princeton Financial Group, broke it down. So, how much money would someone might need to live comfortably in retirement for 40 years? ![]() And Medicare doesn’t cover long-term care, which can be very expensive. Annually, they spent an average of $6,663 on insurance premiums and medical services. You may need some extra care at some point."Ī recent analysis found that half of the 35 million people with traditional Medicare spent at least 16% of their income on out-of-pocket healthcare costs. "You're at an older age, you're probably gonna have more expensive medical expenses alone because your body breaks down a little bit. For instance, Hafeez pointed out that such a figure doesn’t seem to account for costs like medical expenses, which inevitably increase with age. ![]() ![]() Asim Hafeez, who achieved financial independence, or job-optional status, in his 20s, said living on $1.2 million over the course of four decades was unrealistic. ![]()
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