Millennials in North Dakota and around the country are putting off writing wills and creating estate plans because they are under economic stress. This was one of the conclusions researchers from an online financial planning platform reached after asking almost 15,000 millennials about their financial situations and future plans. The participants cited soaring home prices, rising interest rates, caregiving responsibilities and economic uncertainties as their primary reasons for not attending to estate planning matters.
Financial stress
Almost two-thirds of the millennials surveyed told researchers that they had not written a will or created a trust, but 83% of the pet owners who participated said that they had named a guardian to take care of their animal companions. Millennials may be ignoring estate planning matters because they have few assets and are struggling to make ends meet. Millennials told the researchers that they would need to earn $525,000 per year to feel financially secure, and more than half of them said that they had put their home-buying plans on hold because of rising costs. The Millennials and Estate Planning report was published on April 9.
Caregiving responsibilities
About four in 10 of the millennials who took part in the study said that their financial plans were being hampered by caregiving responsibilities that require them to take care of elderly parents and children. Experts refer to people in this situation as the “sandwich generation.” Just 43% of the respondents said that they expect to receive an inheritance, and only 58% of the millennials surveyed told researchers that they had discussed estate planning matters with their older relatives.
Estate planning can relieve financial stress
The results of this study suggest that many millennials are not thinking about the future because their immediate financial needs are so pressing. Living this way can make people feel powerless, and feeling powerless can make economic stress worse. Having an estate plan in place may not solve financial problems, but it does provide peace of mind and make people feel more prepared for what the future might bring.