Financial hacks for millennials: redefining retirement planning

3 MIN READ | #blog

You may not have guessed it, but Millennials are cracking the code on how to become world-class savers. They’re setting aside a higher percentage of their income than previous generations and their goals are wide-ranging.1

For starters, young adults are contributing to 401(k) retirement savings plans in greater numbers than either Gen Xers or Baby Boomers.2 They’re also the first generation to save consistently for lifestyle goals — to gain the financial freedom to enjoy their “best lives” at any age. Many see themselves working longer than their parents, but with the flexibility to pursue their passions along the way.3

For many Millennials, the idea of a retirement “nest egg” that hatches at age 65 is obsolete. Instead, they’re focused on continuous saving (and spending) to create a lifetime of enjoyable experiences. Their philosophy is supported by a growing range of “set it and forget it” digital financial tools, like robo-saving apps and automated deposits. But it shouldn’t stop there. So, what other strategies can help Millennials achieve their goal of work-life harmony and optimize their financial confidence along the way?

In terms of flexibility, whole life insurance is worth considering. You might know about the financial protection it offers through a death benefit to the people you leave behind. That’s only half the story. A whole life policy also provides access to cash throughout your lifetime, with guaranteed cash value growth4. 5.

The guaranteed cash value accumulates over time and isn’t impacted by fluctuations in the market, so you can count on it to help support your priorities: Furthering your education, buying a house, opening a business. Or you can use it to supplement your income later in life, during retirement, or otherwise. Plus, there’s the potential to receive dividends — money that’s yours to spend, save or invest.6 The younger you are, the less a policy costs — making it a more affordable financial strategy for Millennials.

A whole life policy can be a source of guaranteed income. So are annuities7. Both can be good complements and counterbalances to savings invested in IRAs and 401k plans, which are exposed to inflation and market fluctuations.

Developing a financial strategy and an investment and protection portfolio that includes a steady source of monthly guaranteed income can help Millennials from running out of money later in life. By prioritizing a healthy work-life balance and putting together a financial strategy, Millennials are well on their way to achieving and maintaining financial and emotional confidence throughout their lives.

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2022-140595  Exp. 07/24

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4 All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims-paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.

5 Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under age 59½, any taxable withdrawal may also be subject to a 10% federal tax penalty.

6 Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.

7 Annuity guarantees are based on the claims paying ability of the insurance company.


This material is intended for general public use. By providing this content, The Guardian Life Insurance Company of America, The Guardian Insurance & Annuity Company, Inc. and their affiliates and subsidiaries are not undertaking to provide advice or recommendations for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation. A World Class saver is a Person who saves at least 15 to 20% of gross income