Young adults have at least one thing working in their financial favor: time.
Older adults who are faced with delaying retirement longer than they wish often confide in me that, if they could tell their younger self one thing, it would be to start saving for retirement as soon as possible.
But the slow and tedious process of saving can be a hard sell for young adults. It’s especially difficult for those coming out of college with large student loans. Or if they’re facing housing costs that take up 40 percent or more of their take-home pay.
Another challenge in persuading millennials and the group that follows them — Generation Z — to save is “FOMO,” or the fear of missing out. They want to live life to the fullest while they’re still young.
But could there be too much pressure on young adults to invest for retirement right away?