Conventional wisdom has young workers putting money aside each month for their golden years. Part of the traditional fiduciary process is paying off all debts, then transferring money into a 401(k) or other retirement savings account from each paycheck.
Typically, younger people don’t make retirement savings a priority. Living expenses, student debt, rent or house payments, and other day-to-day expenses mean that retirement savings take a back seat.
Younger workers are typically more reluctant to participate in qualified plans. Retirement is far away for them, salaries are lower, and they may be struggling with bills, like rent or student loan payments. A psychological theory called Construal Level Theory (CLT) suggests that the more removed an event is from our personal experience, the more abstract it is for us.
Millennials are generally defined as people born after 1980, who grew up using digital technology and consuming mass media. In general, millennials have good financial habits, according to a 2015 Retirement Saving & Spending Study conducted by T. Rowe Price. However, the survey showed millennial women are falling behind on saving for retirement.