A recent study by human resources consulting firm Aon Hewitt shows that the vast majority of Generation Y (those currently age eighteen to thirty) are going to be unlikely to have enough money saved to meet their needs in retirement. The study cites the lack of participation by Generation Y members in investing in savings programs, particularly those managed by employers. While a justifiable lack of trust in those very firms who invest money is certainly a significant part of the reason for that lack of investment and savings, the consumer habits of Generation Y and the need to have available, disposable income to meet the ever-increasing need for “stuff” can’t be dismissed from the mix that will lead to a generation unprepared for retirement.
After all, it’s a different mindset than the Baby Boomers and Generation X, who while they embraced consumerism, still defined themselves to a certain degree by their ability to enjoy their retirement – there was still an end goal in mind. However, for Generation Y, the messaging from the time they were very young was about advertising, consumerism and the need to express themselves through “stuff”. More than any other generation, Generation Y has grown up in the world of mass media, twenty-four hour a day internet and television bombardment and the ability to meet just about any consumer whim at huge superstores virtually within a stone’s throw of wherever they live.
So it should be no surprise that Generation Y has been spending its money rather than saving it, and equally no surprise that behavior like that has led to what could be construed as a pending financial crisis on an individual and national level when Generation Y reaches its senior years. However, what may be more concerning is that, if you think Generation Y was exposed to too much advertising and consumer culture, that’s nothing compared to the current generation of children.
What’s your take? Can Generation Y turn it around not only for themselves but in what they teach their children? Like us on Facebook and let’s discuss it.
