At a time of worsening global markets, the young generation entering adulthood is looking for new ways to retire.
The poor financial situation of the Millenniums
Generation Y, because they are in an even worse financial situation than the people in the previous generation X. According to the Washington Post, the situation of the Millenniums is not encouraging.
They have an even smaller share in US national wealth than their older colleagues. It is worth mentioning that with each coming generation this statistic is constantly getting worse. This means that the Boomerians were in a relatively best financial situation.
According to the millennium figures, the Boomers have only 3.2% of the national wealth. In order to come close to the same period for the previous generation, the Millenniums would have to triple their wealth. Compared to the boomers, a sevenfold increase is needed.
The unstable situation in the world’s financial system makes young people already consider their future pension. There is no shortage of reasons for concern. Current pension systems are designed in such a way that money from contributions is paid out to pensioners on an ongoing basis. The number of births in developed countries is decreasing year on year and year on year and this is a constant trend. In simplest terms, this means that there will be fewer and fewer people to work, which in turn means less impact on pension provision for ageing populations.
No wonder that young people are wondering what they will live from in their old age when they already see the hardships of living with their parents in retirement and the prospects are depressing.
Bitcoin the cure for millennium old age?
Many young people believe that they will not see any retirement in the future, and that they will have to live on what they put aside for their lives. Given the not too optimistic prognosis of pensions for future generations, many are looking for alternative solutions.
Billionaire Tim Draper blames the banking sector, which promotes “living on credit”, for this. Nowadays, young people are not able to build a house or buy a flat without taking a loan. Often it is a huge commitment for life. It is very difficult to put some money aside for a dignified old age, when the instalment of credit takes up half of the family budget (and sometimes much more). But you have to live somewhere and it would be good to put something in the pot too.
Tim Draper, a cryptic sympathizer, addressed the young people in an interview for Fox Business with a message:
“Cryptocurrencies are the key to a successful retirement savings plan.”
Rachel Wolfson wrote for Bloomberg that one of the main reasons why the millenniums invest in cryptocurrencies is to save for pension funds.
In addition, tools are already available for those wishing to put aside their retirement in cryptocurrencies. Thanks to Bitcoin IRA (individual retirement account), cryptic users can invest in various crypto-activities using retirement savings. The Bitocin IRA is offered by several financial institutions in the United States and allows alternative investments in retirement savings.
Do you think that Bitcoin IRA funds will grow in popularity?