Why start a retirement plan?
Were you born in the 1980s or the 1990s? Do you have a life insurance plan or a retirement fund? Have you even begun to think about these things?
Well, it is not too late and neither is it too early.
The optimal age to get a life insurance policy is under 35 and you can get started as early as 25, when you are a fresh graduate with a crushing student debt. Around 57%- 59% of the US population have a life insurance policy but more than half of these people are 45 or above.
Why is the Millennial demographic not interested in getting life insurance and plan for retirement?
It is more likely that a Millennial will invest in holistic therapy to prevent diseases, instead of signing off an annual payment to a company that may not benefit them any time soon! With rising expenses like student loans, house expenses, and utilities, many millennials would prefer to not take on extra expenses of the life insurance.
One of the biggest problems with life insurance marketing is that it often tends to target people who are married, have children, and have a home. But life insurance can be beneficial for a student who has co-signed a loan with their parents.
To rid your parents of any sudden liabilities, you may want to look into life insurance.
The good news is that they are taking a very active interest in retirement savings. If you want, you can learn about Financial Independence, Retire Early (FIRE), then you can start here by reading up on how the millennials have jumpstarted a movement to quickly save for retirement to quickly leave the grueling work-life behind.
How should we start planning a retirement fund and getting a life insurance policy without going into an existential crisis?
Not all of us have our lives figured out. Thinking about the future is daunting and requires us to broaden our perspectives.
Opting for the right life insurance that is tailored to your individual circumstance can be difficult but with the help of financial experts, you can get through this process. Remember that there are no hard and fast rules about a retirement fund. It can be a personal saving account, an Individual Retirement Account (IRA) or 401(k) offered by your employer as a job benefit.
The key is to START planning and thinking about what you need to do.