The interesting truth about why millennials aren't saving for retirement.
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TD Ameritrade

The truth about millennials and money is complex.

Millennials face different economic challenges than older generations did. I can speak from experience. Pensions feel like unicorns to us, and most of us live with a little monster called student debt on our backs that eats away at our paychecks. As a result, we have different financial priorities and goals, especially when it comes to retirement.


I would probably be less surprised if I came across this scene in a verdant pasture than if I saw a job posting with "pension plan" among the benefits. Painting by Domenichino, via Wikimedia Commons.

Admittedly, many millennials don't think hard about retirement at all. In fact, a recent study found that only 29% of millennials are "actively planning" for retirement ... but the real question is why. Why don't millennials think about retirement? And are we going to be stuck in cubicles until we're in our 80s?

Here's what the facts say.

Things may not be as bleak as they seem. GIF from "The Simpsons."

1. It's true: Millennials are not on track to cover our expenses in retirement.

When millennials think about retirement, they seriously lowball the amount of money they expect to spend, according to the Insured Retirement Institute and the Center for Generational Kinetics. Most millennials expect to spend $36,000 per year, but the average retired person actually goes through more like $47,000.

Another dicey finding from this study? Almost a quarter of millennials think they're going to bankroll their retirement years through the lottery or financial gifts. Yikes.

2. At this rate, many millennials will probably have to delay retirement, which means (in some cases) working until age 75.

A lot of millennials aren't planning to save for retirement until they've paid off their student loan debt, which can take a decade or more.

And it's more than just retirement that's getting delayed. In fact, one-third of recent graduates are saying that they're planning on living at home right after graduation so they can start paying it back. It's a domino effect that delays all sorts of life decisions, like getting married or buying a house.

Photo via 401(K) 2012/Flickr.

3. But more millennials are saving a decent amount of money — and sooner than their parents.

Last year, one survey found that about 56% of millennials are saving at least 5% of their income, which is 6 points higher than the year before! And other research has found that this generation began saving at a median age of 22, which follows a downward trend — reports show Gen X started around 27 and boomers at 35.

4. Plus, Americans in general (not just millennials) are planning to retire later.

In fact, the lack of focus on retirement might have more to do with a switch in mindset than a lack of financial knowledge. Stats show that the number of non-retired people who say they plan to retire after age 65 has grown from 14% in 1995 to 31% in 2009 and 37% in 2015. The expected age at retirement has been creeping up for a while.

Nary a latte in sight. Photo by ITU Pictures/Flickr (altered).

When most millennials entered adulthood, the economy was collapsing, the job market was super bleak, and the housing crisis was in full swing.

So while the majority of millennials appear to be pretty good at saving money when they can, the context is important. In general, millennials tend to avoid investments because the stock market seems like a house of cards, and the job market still feels fairly tenuous.

Millennials do, in fact, have financial priorities. But for most of them, there's a generational switch going on: Quitting work for the last couple decades of their lives isn't at the top of their priority list. Most 20-somethings are taking advantage of 401(k)s when they can, but they're also saving their money for meaningful experiences — like travel — because they'll be satisfied by a "semi-retirement."

You can't do this with an IRA. GIF from "Mad Men."

Since millennials are incredibly committed to finding jobs that they're passionate about, working past age 65 doesn't seem so bad.

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Amazon

Shopping sustainably is increasingly important given the severity of the climate crisis, but sometimes it's hard to know where to turn. Thankfully, Amazon is making it a little easier to browse thousands of products that have one or more of 19 sustainability certifications that help preserve the natural world.

The online retailer recently announced Climate Pledge Friendly, a program to make it easier for customers to discover and shop for more sustainable products. To determine the sustainability of a product, the program partnered with third-party certifications, including governmental agencies, nonprofits, and independent labs.

With a selection of items spanning grocery, household, fashion, beauty, and personal electronics, you'll be able to shop more sustainably not just for the holiday season, but throughout the year for your essentials, as well.

You can browse all of the Climate Pledge Friendly products here, labeled with an icon and which certification(s) they meet. To get you on your way to shopping more sustainably, we've rounded up eight of our favorite Climate Pledge Friendly-products that will make great gifts all year long.

Amazon

Jack Wolfskin Women's North York Coat

Give the gift of warmth and style with this coat, available in a variety of colors. Sustainability is built into all Jack Wolfskin products and each item comes with a code that lets you trace back to its origins and understand how it was made.

Bluesign: Bluesign products are responsibly manufactured by using safer chemicals and fewer resources, including less energy, in production.


Amazon

Amazon All-new Echo Dot (4th Gen)

For the tech-obsessed. This Alexa smart speaker, which comes in a sleek, compact design, lets you voice control your entertainment and your smart home as well as connect with others.

Reducing CO2: Products with this certification reduce their carbon footprint year after year. Certified by the Carbon Trust.


Amazon

Burt's Bees Family Jammies Matching Holiday Organic Cotton Pajamas

Get into the holiday spirit with these fun matching PJs for the whole family. Perfect for pictures that even Fido can get in on.

Global Organic Textile Standard: This certifies each step of the organic textile supply chain against strict ecological and social standards. Each product with this certification contains 95%-100% organic content.

Amazon

Naturistick 5-Pack Lip Balm Gift Set

With 100% natural ingredients that are gentle on ultra-sensitive lips, this gift is a great gift for the whole family.

Compact by Design (Certified by Amazon): Products with this certification are packaged without excess air and water, which reduces the carbon footprint of shipping and packaging.


Amazon

Arus Women's GOTS Certified Organic Cotton Hooded Full Length Turkish Bathrobe

For those who love to lounge around, this full-length organic cotton bathrobe is the way to go. Available in five different colors, it has comfortable cuffed sleeves, a hood, pockets, and adjustable belt.

Global Organic Textile Standard: This certifies each step of the organic textile supply chain against strict ecological and social standards. Each product with this certification contains 95%-100% organic content.

Amazon

L'Occitane Extra-Gentle Vegetable Based Soap

This luxe soap, made with moisturizing shea butter and scented with verbena, is perfect for the self-care obsessed.

Compact by Design (Certified by Amazon): Products with this certification are packaged without excess air and water, which reduces the carbon footprint of shipping and packaging.

Amazon

Goodthreads Men's Sweater-Knit Fleece Long-Sleeve Bomber

For the fashionable men in your life, this fashion-forward knit bomber is an excellent choice. The sweater material keeps it cozy and warm, while the bomber jacket-cut, zip front, and rib-trim neck make it look elevated.

Recycled Claim Standard 100: Products with this certification use materials made from at least 95% recycled content.

Amazon

All-new Fire TV Stick with Alexa Voice Remote

Make it even easier to access your favorite movies and shows this holiday season. The new Fire TV Stick lets you use your voice to search across apps. Plus it controls the power and volume on your TV, so you'll never need to leave the couch! Except for snacks.

Reducing CO2: Products with this certification reduce their carbon footprint year after year. Certified by the Carbon Trust.

Even as millions of Americans celebrated the inauguration of President Joe Biden this week, the nation also mourned the fact that, for the first time in modern history, the United States did not have a peaceful transition of power.

With the violent attack on the U.S. Capitol on January 6, when pro-Trump insurrectionists attempted to stop the constitutional process of counting electoral votes and where terrorists threatened to kill lawmakers and the vice president for not keeping Trump in power, our long and proud tradition was broken. And although presidential power was ultimately transferred without incident on January 20, the presence of 20,000 National Guard troops around the Capitol reminded us of the threat that still lingers.

First Lady Jill Biden showed up today with cookies in hand for a group of National Guard troops at the Capitol to thank them for keeping her family safe. The homemade chocolate chip cookies were a small token of appreciation, but one that came from the heart of a mother whose son had served as well.

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If the past year has taught us nothing else, it's that sending love out into the world through selfless acts of kindness can have a positive ripple effect on people and communities. People all over the United States seemed to have gotten the message — 71% of those surveyed by the World Giving Index helped a stranger in need in 2020. A nonprofit survey found 90% helped others by running errands, calling, texting and sending care packages. Many people needed a boost last year in one way or another and obliging good neighbors heeded the call over and over again — and continue to make a positive impact through their actions in this new year.

Upworthy and P&G Good Everyday wanted to help keep kindness going strong, so they partnered up to create the Lead with Love Fund. The fund awards do-gooders in communities around the country with grants to help them continue on with their unique missions. Hundreds of nominations came pouring in and five winners were selected based on three criteria: the impact of action, uniqueness, and "Upworthy-ness" of their story.

Here's a look at the five winners:

Edith Ornelas, co-creator of Mariposas Collective in Memphis, Tenn.

Edith Ornelas has a deep-rooted connection to the asylum-seeking immigrant families she brings food and supplies to families in Memphis, Tenn. She was born in Jalisco, Mexico, and immigrated to the United States when she was 7 years old with her parents and sister. Edith grew up in Chicago, then moved to Memphis in 2016, where she quickly realized how few community programs existed for immigrants. Two years later, she helped create Mariposas Collective, which initially aimed to help families who had just been released from detention centers and were seeking asylum. The collective started out small but has since grown to approximately 400 volunteers.