Generation squeeze: Why Millennials should start preparing for retirement now
Real Money, a free weekly newsletter giving expert tips on how to save, invest and make the most of your money, is sent every Sunday. You're reading an excerpt − sign up to get the whole newsletter in your inbox.
As a generation, Millennials cop a lot of flak. First from older generations – usually with some mumblings about avocado toast or work ethic – and recently from our younger Gen Z counterparts, who think we're cringe or whatever.
As an official 'cusp' Millennial, I like to pretend none of this criticism applies to me, and that I'm not cringe at all but actually extremely cool and relatable. Plus, at least I actually know how to use a computer.
But if we move past my delusions and into the world of facts, the truth is that Millennials are facing a serious problem. Dubbed the 'generational squeeze', a recent survey by financial advisory Findex found half of Millennial Australians believe they'll need to support their family members. One third believe they'll need to support their elderly parents, and one fifth say they'll have to support their children.
Loading
What's the problem?
While the bank of mum and dad is renowned for handing out loans to children, Millennials could be the first generation that needs to support their offspring and their parents at the same time, a daunting prospect for a generation barely managing to afford the rent. Indeed, one in every five Millennials said they were not confident in their ability to support dependents in retirement.
What you can do about it
If you're in this boat, there are some things you can do now to prepare yourself:
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Canberra Times
an hour ago
- Canberra Times
Stricter IVF regulation on cards as clinic boss quits
"That sort of rapid growth in that industry, particularly a highly commercialised sector, means that there are potential risks or concerns about best practice in the absence of really comprehensive regulation with appropriate oversight and enforcement. "The issue is not just the quality of the regulation, it's also about the consistency and ensuring that the same standards apply to all Australians."
Perth Now
an hour ago
- Perth Now
‘Finfluencers' on notice as ASIC warns of high-risk advice
Australia's corporate watchdog has issued warning notices to 18 social media influencers suspected of promoting high-risk financial products without a licence, amid growing concern that flashy online lifestyles are luring young Australians into dangerous investment territory. The Australian Securities and Investments Commission confirmed it had written to a cohort of so-called 'finfluencers' — content creators who post financial tips online — advising them they may be in breach of the Corporations Act by giving unlicensed financial advice and promoting complex products such as derivatives. ASIC Commissioner Alan Kirkland said the warnings were part of a coordinated global enforcement effort and aimed to protect consumers from being misled by popularity masquerading as credibility. 'This action is about making sure people are asking the right questions and are aware of the risks they may be taking if they follow the advice of a finfluencer,' he said. 'Don't let your hard-earned money fund the lifestyles of people whose expertise is making slick social media content, not complex financial advice.' The notices demand that recipients explain what steps they have taken — or plan to take — to comply with the law, including whether they are licensed or authorised to provide financial product advice. ASIC warned it may escalate the matter if it believed further action was warranted. The regulator is particularly concerned that some influencers are using private communication channels such as direct messages to promote investments they are themselves associated with — a practice that may still fall afoul of financial services laws, even if done outside the public eye. 'We are seeing a troubling pattern where these unlicensed finfluencers invite consumers to join their closed communities or forums to learn their so-called secrets to success or to copy their trades,' Mr Kirkland said. 'Finfluencers are on notice that even when advice is provided through private channels, the law still applies.' The warning comes as research from ASIC's Moneysmart program shows that 41 per cent of young Australians now turn to online sources, including finfluencers, for financial advice. It follows a Global Week of Action Against Unlawful Finfluencers, which saw regulators in nine jurisdictions — including the UK, UAE, Hong Kong and Canada — launch enforcement actions, issue warnings, and coordinate educational campaigns to counter the rise in unlicensed social media financial advice. The UK Financial Conduct Authority, which spearheaded the campaign, used its powers to take down websites, run consumer awareness programs and partner with licensed influencers to promote responsible online financial engagement. In 2022, the regulator issued a similar warning and noted that giving unlicensed financial advice could attract penalties of up to five years' imprisonment or fines of $1 million for corzporations. ASIC has already acted against unlawful finfluencing. In November 2022, the Federal Court found that social media personality Tyson Robert Scholz, known online as '@ASXWOLF_TS,' and who flaunted a lifestyle of luxury cars and private jets had contravened the Corporations Act by carrying on a financial services business without a licence. Scholz offered share trading seminars, subscription packages, and individual trading tips through Instagram and a private Discord chatroom called the 'Black Wolf Pit,' charging followers up to $1,500 for access. In its action, ASIC alleged Sholz bilked followers of more than $1.15 million between March 2020 and August 2021. In February last year, Scholz was declared bankrupt for failing to pay $500,000 in court costs. ASIC said investors and consumers can check the credentials of finfluencers out by using ASIC's professional registers search tool, and has warned consumers to be vigilant about who they turn to for financial advice. 'It's important that consumers separate fun from fact when it comes to finfluencer content. Popularity doesn't equal credibility. Check their credentials and whether they're licensed or authorised, before checking your money out,' Mr Kirkland said.
SBS Australia
an hour ago
- SBS Australia
New regulations hit Buy Now, Pay Later providers
For millions of Australians, Buy Now, Pay Later providers like Afterpay or Zip have become a common tool to take the pain out of purchases by breaking the cost of goods or services into smaller chunks paid over several weeks. As of Tuesday the 10th June, strict new regulations from the Albanese government have come into play with Buy Now, Pay Later providers now treated similarly to a credit card. This last change means that your Buy Now, Pay Later debts could impact your credit score and could impact a customer's future borrowing capacity for a house or a car. SBS Filipino 12/06/2025 08:54 📢 Where to Catch SBS Filipino
