Millennial: Say good bye to retirement pay

millennial retirement

Millennial: Say good bye to retirement pay

The generation between 18 and 35 years old are identified as millennial, which is redefining the employee world and will be the worldwide mayor force by 2020.

However, only a few think about their retirement. According to the numbers from 2014, 65% of young people between 15 and 29 years old are not thinking on a saving account for their retirement because they do not even see retirement as an option.

Information from Manpower showed that more of the half of the millennial in the world believes that they will work beyond their 65’s.

None of the millennial from Mexico will get a retirement pay because all the persons that were registered on the IMSS (social security program) after 1997, will get their retirement pay according to what they saved on an afore account.

Afore is an administration of funds for retirement, which handles and invests the resource that get discounted to the employees each month. The percentage is complemented with contributions from the employer and government which is 6.5% of the salary of the employee. The bad news is that this percentage is very short when making calculations for the future because with this saving, the estimation is that the employee will be retired with the 30% of the last salary.

Salomon Juan Marcos Villarreal thinks that it is very important for the young people to know and recognize the importance of saving money for their future not only to think about retirement but in general. Making voluntary contributions is a great option and the sooner the better.

“I always tell the young people that work at Grupo Denim to think about the life style that they would like to live when getting to the retirement age and to take into account the facts of the actual economy”, said Salomon Juan Marcos Villarreal, president of this company.