According to a survey, millennials in Pennsylvania and across the country are putting off estate planning because they are under stress due to economically rising interest rates, high home prices and the financial responsibility of caregiving for their parents. As such, they are not focusing as much on how to pass on their assets.
Financial stress
Born between 1981 and 1996, millennials have witnessed some of the most monumental economic movements in modern history. Many have experienced recessions, economic downturns and economic booms. Many feel like they will never have enough. They fear that if they lose just one paycheck, they are at risk of losing their home and everything they have worked for. This stress about managing finances and their financial future, as well as managing debt and planning for retirement, is part of the reason why millennials are not as proactive when it comes to their estate planning.
Caregiving
Many millennials are at an age where they find themselves taking care of their own children while at the same time assisting in the care of an aging parent. They are stuck between two generations that need their support. The daily activities associated with caregiving can take up a good portion of their time, and it could lead to someone needing to reduce the hours they work secularly in order to provide the needed care. The loss of work hours puts a financial strain on the family and can impact a millennial’s ability to think about making financial plans for the future, including estate planning and creating a will.
Present focused
The family responsibilities and financial stress that millennials are under have many of them thinking about their immediate financial needs and not thinking about the future. This can leave a person feeling powerless, and when a person feels powerless, their ability to improve their economic situation may be diminished.
An estate plan may not solve all of a millennial’s immediate financial problems. However, having an estate plan in place can provide peace of mind and make people feel better prepared for the unforeseen challenges that the future might bring.