It seems we’re all just chasing rabbits. And the rabbits are getting faster and farther away. In retirement, 80 is the new 60. And in wealth, seven figures is the new six figures. Pity the poor millionaire.
Half of millionaires with less than $5 million believe that just one financial setback would wreck their lifestyle. And the youngest affluent adults, Millennials, are the most insecure of all generations, with more than half (52%) fearful of losing it all, according to the latest UBS Investor Watchreport.
Gen Y’s insecurity runs deep, even for the richest. Millennials worry about how their wealth stacks up with that of their peers (68% of Millennials vs. 53% of Baby Boomers) and feel pressure to “keep up with the Joneses” (48% compared to 44% of Gen X and only 22% of Boomers).
Millennial workplace expert Lindsey Pollak says it reflects the angst of a generation.
“It’s important to have context about Millennials,” Pollak tells MainStreet. “This giant generation (80 million) experienced the Great Recession, which most likely directly impacted them, their family and friends. Plus, Millennials have the largest amount of student loan debt compared to other generations. Managing that significant debt during uncertain financial times fosters anxiety.”Perhaps it is this insecurity that drives Millennials’ desire to rent luxury rather than own it, she says.
“Consider the success of websites and apps that allow users to temporarily use designer gowns (Rent the Runway), deluxe houses or apartments (Airbnb), or expensive cars (rent a ride),” Pollak says.