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Edited By: Andrew Gonzales

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Most people alive today will work until they die. Retirement is the career professionals promised land. Study hard at school, get a good job, work hard your entire life, live within your means, invest diligently and you will be rewarded with endless free time in your final years. It’s not much to ask for, but to most people alive today it will only ever be a dream.

A Bankrate survey found that fifty five percent of Americans are behind on their retirement savings and ten percent don’t even know where their retirement savings stand. Like most things to do with personal finance the numbers are ever worse for young professionals. The national institute on retirement security reports that sixty six percent of WORKING millennials have NOTHING saved for retirement.

Even though two thirds of millennials work for an employer that offers a retirement plan only twenty percent participate in the offer. Millennials are between the ages of twenty-seven and forty-two. Many people in this group are at the peak of their careers so these reports can’t be attributed simply to young people just starting out in their financial lives.

But who can blame them? The financial firm Fidelity recommends that you should have at least the equivalent of your annual salary saved by age thirty, three times your salary at age forty and six times your salary by fifty to be on track for retirement. I like to think I am personally pretty good with my money. I have come from a career at an investment bank where I was earning a lot more than the average person my age and I still got nowhere near these numbers.

A higher income does mean the goals are higher since this is based on multiples of your income but it’s easier to save when you earn more too. If you are actually on track with these numbers, I am genuinely very impressed, let me know in a totally unverifiable comment in the comment section and I will give you an equally worthless love heart reaction.

But most people are well behind Fidelities recommendations, the NIRS found using the recommendations of financial experts only five percent of working millennials are saving adequately for retirement and everybody else is probably going to be working until they die. There are three big reasons for these alarming statistics. The first reason is all the obvious stuff.

Inflation is at a three decade high, millennials started their careers after the worst financial crash in a century, the cost of college is increasing eight times faster than wages, most young graduates are leaving school with five figure debts before they even start working, renting even a one bedroom apartment is now unaffordable everywhere in the country for someone earning minimum wage, and saving for a house is almost impossible in the expensive cities with good job opportunities.

A New Yorker with a college degree would need to commit to 7.5 years of dedicated saving to have enough to make a down payment on an entry level apartment. That dedicated saving can only start after they pay off their student loans which now on average takes twenty years. After they buy the entry level apartment, they then have a thirty-year mortgage to pay off. If this person started working at twenty two they would be seventy-nine years old before they were a debt free home owner in New York in an ideal scenario. Variables like starting a family, getting sick or earning less than the average college graduate would put them even further behind. And that’s just reason one…

So it’s time to learn How Money Works to find out why you will be working until you die.