Financial freedom cannot be achieved independently- at least for America’s youngest generation, according to a new Merrill Edge report.
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The survey found that one in three Americans relied on an inheritance for financial stability.
When narrowed down between generations, the “do-it-yourself” generation Z- the generation after millennials, were more than twice as likely to depend on their family legacy.
Young people in the generation, roughly ranging between ages 18 to 22, face three very serious challenges: rising student debt, the prospect of living longer, and competing priorities, according to Bank of America Merrill Edge Head Aron Levine who said its creating a “new normal” for how to redefine retirement.
“If you’re in your young twenties you’re not sitting there saying at 65 I’m going to have this pot of money I’m just going to get out of the workforce,” he told FOX Business’ Maria Bartiromo on “Morning with Maria.” “I think there’s a clear view that says I may continue working… the question is how do I finance that over the course of time versus some lump sum I have to have over a certain age.”