New figures published by the Pew Research Center suggest Millennials, defined as adults of working age under 25, have significantly low savings rates of negative two percent. Americans ages 35 to 44 have a savings rate of 3 percent and those ages 45-54 have a savings rate of roughly six percent. While young workers are often considered poor savers, figures indicated that this wasn’t always the case- in 2009 the savings rate for Americans under 35 years was 5.2 percent.
The research published suggests this generation’s struggle is due to the burden of student loans paired with a weak job market, though some subjects of the study admit some income goes toward travel as well. The report indicates four out of ten households are headed by an adult under 40 who carries student debt. These college-educated adults paying off loans have their net worth reduced to one-fifth of that of college-educated adults without loans to pay. In regards to employment prospects, despite the recent growth in the US economy the Bureau of Labor Statistics asserts that Millennials still have the highest unemployment rate in the United States at 10.5 percent in October. By comparison, Americans 35 to 44 years old have an unemplolyment rate of 4.4 percent.
Such burdens are projected by economists to make it more difficult for Millennials to buy a house or car, in turn affecting those markets. Furthermore, without a nest egg, should the economy take another turn Millennials are in a vulnerable position.
Read more here- “Millenials Face a Savings Time Bomb,” (Aimee Picchi, CBS News)
Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.