Oldest working Millennials who lose their income will face significant problems paying living expenses.
“The most significant finding is that many of the people had private health insurance.”Jesse Slome, director of the American Association of Critical Illness Insurance
Millennial net worth is higher for oldest Millennials
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, even following the Covid-19 situation.
The 81 million Millennials are young men and women born between 1982 and 2000. Currently they are between ages 19 to 37 shares Jesse Slome, director of the American Association for Critical Illness Insurance.
“A new analysis shares that the average Millennial 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.”
Average Millennial net worth at age 37 is $25,152
The median of net worth is $10,400 according to the analysis. The average net worth ranged by age.
- 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 assumes that students don’t work or work marginally during school. That they maintain an average amount of student loan debt and get average employment after graduation. 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 Slome, AACII’s head. “Millennials have very different needs compared to prior generations. They are more likely to be diagnosed with a critical illness than to die or be disabled. Also, Millennials are more likely to have health insurance with high deductibles and significant co-pays. After age 35 there’s a real need for a modest supplemental health insurance plan.”
Slome urges Millennials learn more about cancer insurance which can be purchased as part of a critical illness insurance program. “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 posts valuable data regarding risk of cancer by ages. Use the instant critical illness insurance cost calculator provides a cost estimate for a $10,000 cancer insurance policy benefit.