Posted by ( insurGuru™️Insurance Academy Column) As the post-80s and post-90s groups as a whole reach their 30s, their living conditions have often undergone earth-shaking changes.In the past, one person was full and the whole family was not hungry, but nowadays, loans,retirement.Pension.child.Education.MedicalAnd other comprehensive problems followed one after another.
After carefully analyzing the financial problems that this millennial group will face in the United States, we can't help but express our feelings: How difficult is it for people born in the 80s and 90s to reach middle age?
Retirement, buying a house, the inevitable life goal
After the 80s and 90s, the older generations are rightThe level of trust in social security pensions is completely different.According to Wells Fargo’s survey of millennials, up to 74% of the groups believe thatWhen you retire, you cannot count on the government's social security pension.
And with the annual inflation, when it comes to retirement age, the actual income after retirement will become the main financial management goal of the post-80s post-90s generation.What's more, most young people are now considering FIRE-economic independence,Early retirement(Retire before the age of 50).
at the same time,Most people born in the 80s and 90s will also face an average mortgage of $180,018, Saving and managing finances in advance is also called a thing that must be prepared.
Newborn children and children's future education issues
For those born in the 80s and 90s, most groups have already or are forming families and are about to welcome the arrival of new children.According to the "Family Child Rearing Report" of the United States Department of Agriculture,Raising a newborn to the age of 17 in the United States is estimated to cost an average of $233,610 per family.1.
However, this is not the end. When our children need to receive further higher education,The average cost of a 4-year private university reached $181,480.
Therefore, for a family, take advantage of time to plan a savings plan and plan for the children in advance.University Education Funding Program, Is an optimized choice in financial strategy.
Post-80s and post-90s face pension problems
After worrying about their children, those born in the 80s and 90s are about to face themselvesRetirementThe problem. USA Today pointed out in the "Millennial Retirement Issue" that there will be at least 180 million post-80s and post-90s who need to find ways to maintain their previous lifestyle after retirement2.
And ifIf you don’t start saving at the age of 25 and wait until 10 years later, at the age of 35, to start saving for 67 retirement, then 34% of your annual income will need to be forced to save to reach the goal.2.Under such circumstances, the quality of life in the past few decades may be significantly affected.
A comprehensive solution-life insurance
In order to face these problems, each of us is seeking financial solutions, and life insurance in the United States is a comprehensive solution.
Consumer life insuranceIt can help families to carry out short-term risk management on the road to building wealth.andCash value life insurancecan be use onSupplementary retirement income, Personal savings and loan accounts, lifelong protection for children and education fund plans, etc.In practice, many parents take advantage of the flexible applicability of life insurance, use life insurance to help their children carry out family financial education, provide their children with marriage funds, home purchases, and even children's life insurance plans.
Is American life insurance expensive?
In 2017, LIMRA conducted a survey called "Insurance Barometer Study" with more than 2031 respondents.The age group of the people participating in the survey ranged from 18 to 36 years old.In this group,73% of people think subjectively that "life insurance is too expensive."During the valuation process, this group overestimated the cost of life insurance more than three times the actual amount.
In reality, a foundationConsumer life insurance.On average, only $1 per day3.Well below the price of a cup of coffee.
appendix
1. US Department of Agriculture, Center for Nutrition Policy and Promotion: Expenditures on Children by Families, 2015; Revised 03/2017
2. 假设25岁年收入4万，每年收入增长2%。67岁完全退休时的收入是年收入的80%，并直到92岁时保持每年5%的年回报率。
3. Using Accuquote, the average price of a 30-year term life insurance with a coverage of $50 for a 25-year-old healthy man.
