The following is from the website Trust & Will and written by a staff member. I thought the data they gathered about millennials and how they behave regarding estate planning would interest some of you.
The following is from the website Trust & Will and written by a staff member. I thought the data they gathered about millennials and how they behave regarding estate planning would interest some of you.
“Millennials are now the largest living generation in the US, making up 22% of the population. Collectively, they’ve lived through several world-altering events that have shaped their generational experience: 9/11, the 2008 financial crash, and now, the COVID-19 pandemic.
But despite all of this instability — or perhaps because of it — millennials have become adaptable planners. They’re generally better than previous generations at setting and achieving personal and financial goals, harnessing the power of technology in the process. Now, as they are buying homes, starting families, and caring for aging parents, they are planning further into the future.
Here at Trust & Will, understanding the nuances of estate planning and what it means for individuals, couples and families is important to us. Each year, we analyze data from thousands of individuals aged 25 to 44 in a proprietary study to explore specific insights and behaviors of the millennial generation when it comes to estate planning.
2024 Key Insights
The American economy may be recovering after the pandemic, but many people struggle to feel this bounce-back in their personal and financial lives. Millennials, who make up the largest share of the workforce, continue to face significant obstacles to achieving financial stability compared with previous generations at their age. Some of this is a legacy of their earlier years— many graduating college into the 2008 global financial crisis, and a decade and a half later, working and living through a global pandemic. As they move into new life stages, Millennials are becoming the ‘sandwich generation’ that now encounters new financial burdens, like both childcare and eldercare, that cost more than ever.
Many Millennials want to buy property, but it’s more difficult than ever with sky-high home prices, low inventory, and continually rising interest rates. All of these pressures, surveys show, are making the generation extremely stressed. A great indication of this is just how high Millennials price their potential happiness: they say it would take $525,000 a year for them to be happy, which is almost double the average. Or, for those on the older end of the cohort, they do not see the stability they expected as they enter middle age, saying that they “can’t afford to have a midlife crisis” akin to that of previous generations.
The future may look different for Millennials than it did for their parents’, whose path was more stable and predictable. But that makes it all the more important to talk about financial planning —including its end-of-life element. According to our survey, Millennials are thinking about estate planning, fully aware of just how important it is for their families’ futures. But few Millennials have any sort of estate plan in place.
- 62% of millennials don’t have a Will or Trust; leaving only 36% prepared for the future.
- 34% of Millennials do not know whether their parents have an estate plan
- Surprisingly 33% of Gen Z have an estate plan, catching up with older cohorts
- 83% of Millennial pet owners assigned a guardian specifically for their pets, up from 71% the year prior.
- Only 58% of Millennials have discussed estate planning with older generations in their family, including when they were growing up
- 56% of Gen Z and 39% of Millennials do not want their families to have access to their emails, direct messages, and texts after they’re gone
Google how many adults have wills in the USA today. You’ll see figures ranging from about 30% to 50%, so I’m not surprised to read, at least according to Trust & Will’s survey, that millennials fall in the lower part of that range. While they aren’t focused on their “golden years” yet, they, like many others, are not thinking about other things that could happen to them either, such as accidents. Whether you’re 40 or 80, no one knows what the future holds. If you do not have a will but have loved ones, I urge you to act now to correct that. An estate plan isn’t just helpful after you pass away, there are legal instruments available to you that can be immensely beneficial if you become incapacitated for an extended period of time. It is the loving thing to do. Whatever your age, please get in touch so we can build an estate plan that will protect your hard-earned assets and loved ones. Call me at 513-399-7526 or go online to www.davidlefton.com for more information.
Source: Trust & Will; staff written.