When it comes to managing finances, it’s no secret that everyone—from Gen Z to Boomers—deals with money-related worries, whether it’s covering monthly expenses or planning for long-term needs like retirement care. According to the 2024 Insurance Barometer Study from Life Happens and LIMRA, a large chunk of Americans (44%) are particularly anxious about saving for retirement—a consistent concern since the study began in 2011.
Millennials Take Center Stage
There’s been a noticeable shift over the years. While the overall concern about retirement has stayed roughly the same, Millennials are now voicing more worry about many financial issues than any other generation. In the recent study, Millennials led the pack in worries on nine out of 15 financial topics compared to Gen X’s dominance on 14 of these topics just two years ago. Here’s a snapshot of how the two generations compare on key financial issues:
- Retirement Savings: 54% of Millennials versus 48% of Gen X are worried about having enough saved.
- Emergency Funds: 45% of Millennials are concerned about saving for emergencies compared to 38% of Gen X.
- Income Protection: 45% of Millennials worry about supporting themselves if illness or injury prevents them from working, versus 39% of Gen X.
- Long-term Care: 40% of Millennials fear the high costs if they need long-term care, while 37% of Gen X share this concern.
- Medical Expenses: 40% of Millennials are anxious about covering medical costs in case of illness or injury, compared to 34% of Gen X.
Bridging the Coverage Gap
Despite these concerns, fewer Millennials (50%) are purchasing life insurance than Gen Xers (55%). Many Millennials find life insurance too expensive – 42% of them believe so – and almost half of them (47%) admit they are just making a rough guess when estimating its true cost, with 46% overestimating it by five times or more.
Aside from life insurance, there are other types of coverage that can help ease financial worries. For instance, while 45% of Millennials are concerned about income protection if they become disabled, only 19% have disability insurance, and a similarly low percentage feel confident about what it covers.
Another interesting option is a combination policy that blends life insurance with long-term care coverage. This kind of product can help address both the worry about leaving family members with financial strain (38% of Millennials worry about this) and the challenge of paying for long-term care (40% are concerned).
The Path Forward
The solution is straightforward. Take a look at the options available—life, disability, and long-term care insurance—then have a conversation with a trusted insurance professional who can help tailor a plan to your budget. The best part is, these consultations are completely free and without any obligation. If you need guidance, talk to your local agent. If you don’t have a local agent, the professionals at Brightway Insurance, The Smith & Mitchell Agency, are ready to help you navigate these decisions.
Taking this proactive approach not only safeguards your financial future but also provides a sense of reassurance for you and your loved ones. Losing a family member is inherently challenging, and with the right life insurance coverage, you remove the added burden of financial stress during those already difficult times.
