About a quarter of young American adults fear Social Security won’t be a reliable source of retirement income for them.
It’s important that they take more control of their own finances by investing and saving at every stage of their lives.
Young people can open self-directed individual retirement accounts and make sure their income sources are sufficiently diversified, for example.
Here are some things Gen Z and millennials can do to create some financial peace of mind for themselves:
Start investing in a 401K, traditional IRA, Roth IRA or an individual brokerage account. Getting started early in life allows these accounts to grow and become the primary source for retirement savings.
Find ways to diversify your sources of income. Do not have all of your income coming from one place.
Create your own pension. There are a variety of financial options that can give someone a similar low-risk consistent income stream that a pension or Social Security would provide — for example, a single premium immediate annuity or a deferred annuity.