Life Stage Insights

link-4088190_1280.png
letters-1132703_1280.png
smartphone-1132677_1280.png

‪(415) 598-8566‬

Abstract Glow
Social media may be endangering your retirement

Life Stage Insights

Life Stage Insights

Social media may be endangering your retirement

Pervasive images of friends' experiences on social media can pressure millennials to overspend, potentially putting their long-term retirement preparation at risk.

With the benefits of compounding, those who get an early start on their savings and investments are far better positioned to achieve financial security and a worry-free retirement. Young people today have many challenges to saving—including student debt, soaring housing costs, and daily expenses. But their social media habits may be yet another obstacle on the road to financial independence, according to recent studies.


Half (49%) of Millennials (age 23-38) say their spending habits are influenced by images and experiences shared by their friends on social media, according to a recent national survey. Inundated by images of exotic travel, the newest fashions, and trendy restaurants, half of Millennials also confess they are convinced to spend more than they can afford.(1) Another survey revealed that almost six in ten (57%) make unplanned purchases because of what they see on social media.(2)


Social media has escalated the game of “keeping up with the Joneses” to new levels. This is little surprise given how pervasive social media has become in recent years. On average, Americans spend over two hours a day engaging with social media sites and apps.(3) And while social media is great for showcasing the wonderful experiences friends are having, it does little to reveal the financial consequences of excessive spending. In fact, seven in ten (72%) Millennials say they’re at a loss to understand how their friends are able to afford all the experiences and purchases they portray on social media.(1)


As many households fall behind in retirement savings, “keeping up with the Joneses” can be a dangerous game. The majority (59 percent) of Americans live paycheck to paycheck, and nearly half (44 percent) typically carry a credit card balance.(1) Millennials are particularly challenged to save: Those under age 35 do not save at all, on average. In fact, younger people actually have a negative savings rate of one and a half percent.(4)


To tone down the influence of social media, experts advise keeping a proper perspective of the “idealized” versions of your friends’ lives as portrayed on social media, and turning to other sources that can help inspire, educate, and keep you financially on track to achieve financial independence.

leisure time2.PNG

leisure time2.PNG

leisure time2.PNG

leisure time2.PNG

Watch Video
Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

Business Graphs

Content Title

Subtitle

Source

information_button_symbol_800_clr_6174.p
I would like to learn more about...

Financial strategies for Millennials

Strategies to increase savings and grow investments

Retirement preparation

Enter

Thank you. Your inquiry has been sent.

Please enter your contact information

magnifying_glass_800_clr_16614.png
What is My Life Stage?

Explore your life stages and events to help uncover your financial planning needs.

Get Started
About us

Life Stage Insights is the turnkey lead generation, relationship-building, client discovery, and wow factor solution for financial advisors. Learn more at www.lifestageinsights.com

references

1.  Charles Schwab, Modern Wealth Survey, 2019

2. Allianz Life, Generations Ahead Study, 2018

3. GWI, Media consumption in 2019

4. Moody's Analytics

Disclosures

This publication is designed to provide general information and is for discussion purposes only. The effectiveness of any strategy is dependent upon each individual’s facts and circumstances. This article does not provide legal, tax or account advice. Because of the possibility of human or mechanical error, the accuracy, adequacy, completeness or availability of any information is not guaranteed.

More from Life Stage Insights
Gen Xers Slammed by Inflation

Gen Xers Slammed by Inflation

One in five retirees looking to return to work due to inflation

One in five retirees looking to return to work due to inflation

Should you combine investment accounts when you get married?

Should you combine investment accounts when you get married?

Two-thirds of 401(k) plan participants view themselves as savers, not investors

Two-thirds of 401(k) plan participants view themselves as savers, not investors

Retirees on Social Security Beginning to Struggle

Retirees on Social Security Beginning to Struggle

Financial strategies for newlyweds

Financial strategies for newlyweds

Four steps to achieve a more secure retirement

Four steps to achieve a more secure retirement

Retirement Planning: Moving From Concepts to Specifics

Retirement Planning: Moving From Concepts to Specifics

Inflation having widespread impact on financial planning

Inflation having widespread impact on financial planning

How can siblings navigate caregiving for parents?

How can siblings navigate caregiving for parents?

Most Americans ‘completely lost’ when it comes to health insurance

Most Americans ‘completely lost’ when it comes to health insurance

Having a Guaranteed Income Can Improve Your Health and Happiness

Having a Guaranteed Income Can Improve Your Health and Happiness