A large number of young people have given up on planning for their retirement.
A new study by Fidelity says young adults ages 18 to 35 have not been making good retirement moves. More than half stopped saving during the pandemic, and almost half say there's no point in saving until things return to normal. Financial experts like Derrick Kinney are concerned about those Americans who left their jobs and cashed out of their 401(k)s.
“This could be really a ticking time bomb down the road because the people aren’t saving and they’re not understanding why they should do it,” Kinney said. “That could cause a major strain not only on social security, but also on their retirement.”
He admits Americans have had a tough time.
“People have been through more financial trauma this generation than really past generations have in such a concentrated time,” Kinney explained.
However, he urges them not to wait to plan for retirement.