More than half of Millennials are saving at least 5% of their income, according to a study from earlier this year, but the bigger problem remains that they are not saving enough for retirement for the lifestyle they desire.

A Harris Poll study commissioned by the Million Dollar Round Table found that only 22% of millennials are saving for retirement, yet on average they expect to retire relatively young, at 62. While the money that should be going to expecting an early retirement is being spent on other things (like buying a house) there is another problem: And that is the fear that at age 59 ½, these millennials can start making withdrawals from qualified retirement plans without incurring a 10% federal income-tax penalty, an opportunity that will quickly drain a retirement plan.

It always bears repeating that with pensions being pretty much a thing of the past, younger generations need to set up a 401(k) plan for their retirement. And the sooner the better. The first step is to find a knowledgeable financial advisor, then develop a long-term strategy and stick to the plan. A sound investment plan includes a diversified portfolio and one that will reinvest dividends so you can earn compounded interest. And always meet company matches to increase your monthly contributions. These simple strategies are key to ensuring a good wealth accumulation strategy.

And despite some naysayers, when the time comes your Social Security can still be a supplemental source of income. In a summary of the 2016 Annual Reports by The Social Security Administration, it was projected that the program will stay afloat with tax income, paying 75% of scheduled benefits through the end of 2089. You’ll also have some options at that time to decide what age you want to utilize this benefit. For example, if you delay taking your benefits, the income you receive down the line will be bigger. If you take it early, your checks won’t be as much, but you’ll get more of them.

There are many strategies that millennials can utilize to help reduce the stress in retirement while saving for things that are important to you. If you still have concerns, you can call Mooney Lyons at 1.847.382.2600, or visit us at

Spiezio, Caroline. Millennial financial action does not match retirement expectations. ebn.  5, July. 2016.

O’Shea, Arielle. Millennials, Don’t Despair About Retirement. nerdwallet. 18, April. 2016.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.