LOS ANGELES - June 1, 2020 - A new report breaks down the average Millennial net worth by age. Most will face significant money problems as a result of loss of income predicts director of the American Association for Critical Illness Insurance (AACII).
There are roughly 81 million Millennials, young men and women born between 1982 and 2000, shares Jesse Slome, director of the critical illness insurance national organization. Currently they are between ages 19 to 37.
"A new analysis shares that the average millennial's net worth is a mere $10,400," says Slome. The data was posted on The College Investor website and takes Federal Reserve data, projected salaries and cumulative college debt into account. "The oldest millennials have the highest average net worth," Slome notes. "But if they lose their job, it likely won't be enough to cover their living expenses for more than a few months."
According to the analysis the median of net worth for the generation is $10,400. The average net worth ranged by age with older millennials worth more that those who are still in their 20s.
• 38 – $33,173
• 37 – $25,152
• 36 – $20,612
• 35 – $16,132
• 34 – $11,494
• 33 – $6,690
• 32 – $4,159
• 31 – $2,093
The survey assumed that students don't work or work marginally during school, Slome notes. Also it takes into account that the older millennials have benefited from a bull economy, seeing their small nest egg growing more over the last few years.
Millennials need supplemental health insurance planning
"Age 35 should be set as a transitional financial planning age," explains AACII's head. "Millennials have very different financial planning needs compared to prior generations. They are more likely to be diagnosed with a critical illness than to die or be disabled."
Millennials are more likely to have health insurance with high deductibles and significant co-pays, the planning proponent points out. "After age 35 there's a real need for a modest supplemental health insurance plan."
Slome urges Millennials learn more about cancer insurance that can be purchased as part of a critical illness insurance program. Learn more at https://criticalillnessinsuranceinfo.org/cancer-insurance/. "The risk of a future cancer diagnosis increases and the result will be time off from work and medical costs not covered by insurance," he adds.
A small amount of cancer insurance only coverage will cost a Millennial well under $100 a year. The Association provides an instant critical illness insurance cost calculator that provides a cost estimate for a $10,000 cancer insurance policy benefit.
"Health insurance is great but it's not enough if you ever have a serious illness," explains Slome, AACII's head. To learn more visit the Association's website at https://www.criticalillnessinsuranceinfo.org or call 818-597-3205.
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Jesse Slome
