They’re the generation much maligned for their storied love of avocado toast and craft beer but millennials seem to have a different idea of retirement than previous generations.
According to an article on Fox Business, it may be possible for millennials to retire by 50 but it will take some strategic planning and investing on their part. Financial expert Chris Hogan said that millennials could conceivably retire in their 50s by making the most of their 401k or other investment plans and tackling their student loan debt.
Hogan recommends vigorously eliminating that debt and then creating an emergency stash of at least three to six months pay. After that, the rest can go towards retirement savings via a 401k or other retirement savings and investment options. Paying down that debt frees you up to use those savings tools to the utmost.
On the flip side of the coin, millennials may have a different attitude toward retirement than previous generations. According to an article on Entrepreneur.com, millennials don’t necessarily think of retirement as an endpoint to a lifetime of working. And they don’t seem to be waiting to travel and enjoy life.
By creating passive income streams, which is making money without working (think buying a house and renting rooms) and working the gig economy, millennials may be less tied to day jobs than previous generations, which gives them more freedom to travel, something a lot of us choose to save until retirement.
Whether or not they actually choose to retire early remains to be seen but it’s safe to say that attitudes about saving and retirement are changing, and millennials seem to be leading the charge.