Millennial Students’ Awareness of Retirement Issues, Their Retirement Preparedness and Future Expectations

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Doctor of Business Administration (DBA) Theses and Dissertations

4-17-2020

Millennial Students’ Awareness of Retirement Issues, Their Millennial Students’ Awareness of Retirement Issues, Their

Retirement Preparedness and Future Expectations Retirement Preparedness and Future Expectations

Krzysztof P. Bryniuk

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MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 1

Millennial Students’ Awareness of Retirement Issues, Their Retirement Preparedness and

Future Expectations

Submitted by

Krzysztof P. Bryniuk, MACC, MBA, MM

College of Business

In partial fulfillment of the requirements

for the Degree of Doctor of Business Administration

George Fox University

Newberg, Oregon

April 17, 2020

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 2

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 3

Abstract

Sandwiched between the "Gen-Xers" and the "Baby Boomers," the Millennials are now

the largest generation in the workforce. They also have a (mostly undeserved) reputation

of being pampered, over-protected, lazy, spoiled, failures. Millennials often shun grown-

up responsibilities for which the term "adulting" was coined. Primary adulting

responsibility is planning for retirement. This study addressed that issue and had its

origins in the author's practice as an Accountant and Income Tax Preparer, as well as his

profession as a Business and Accounting Professor/Instructor at various colleges and

universities.

It became apparent to the researcher that clients and students, particularly those in the

Millennial Generation, may not be adequately preparing themselves for their eventual

retirement. This could represent a significant future problem as both the government and

the private-sector have substantially reduced the safety-net for future retirees by

increasingly shifting the responsibility for retirement planning from institutions to

individuals. Aware of many recent changes in the retirement landscape, including

government-sponsored programs, tax considerations, private programs, and investment

instruments, the researcher conducted an extensive review of the pertinent literature and

designed a study to evaluate the awareness and preparedness of a limited number of

College Students (Business Majors) in South Florida.

The study is intended to ascertain awareness, preparedness regarding retirement, and

retirement expectations of a purposeful subset (sample) consisting of 12 young adults (age

21-33), South Floridian college students. To increase the reliability and validity of the

study findings, a qualitative method using a narrative design was selected. The

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 4

researcher conducted in-depth interviews, read documents, and looked for themes related

to millennial students' awareness of retirement Issues, their retirement preparedness, and

future expectations. The narrative approach helped to develop a sequence of factors

(events) to form a cohesive story. It permitted an interpretation of meanings that had

influenced participants' understandings and shaped their awareness of retirement issues,

retirement preparedness, and future expectations during early adult life.

Findings from the study suggest that the development of financial awareness, retirement

preparation, and retirement expectations are important for Millennials. The results also

indicate that participants are confident they will have sufficient income to cover living

expenses during their retirement. However, millennial retirement expectations are not well

aligned with the planning steps they've taken to date. As a group, Millennials still heavily

rely on their parents, family, and partners for financial support

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 5

Table of Contents

List of Tables ...................................................................... Error! Bookmark not defined.

Abstract ................................................................................................................................. 3

Definition of Terms .............................................................................................................. 8

Chapter One ........................................................................................................................ 10

Introduction ......................................................................................................................... 10

Socio-Economic Factors ..................................................................................................... 12

Structure of the Dissertation ............................................................................................... 14

Background and Historical Perspective .............................................................................. 14

Incentives and Rationalization ............................................................................................ 18

Purpose of this Study .......................................................................................................... 19

Research Questions ............................................................................................................. 19

Primary research question ................................................................................................... 19

Secondary Research Question(s) ........................................................................................ 19

Delimitations ....................................................................................................................... 20

Literature Review ............................................................................................................... 23

Chapter Three ..................................................................................................................... 57

Methodology ....................................................................................................................... 57

Data Recording Procedures ................................................................................................ 69

Data Analysis Procedures ................................................................................................... 71

Chapter 4 ............................................................................................................................. 78

Results ................................................................................................................................. 78

1.2 Level of Participants' Retirement Confidence .............................................................. 98

Chapter 5 ........................................................................................................................... 115

Discussion ......................................................................................................................... 115

Primary research question: ................................................................................................ 115

Secondary research question(s): ....................................................................................... 116

References ......................................................................................................................... 137

Appendices ........................................................................................................................ 153

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 6

List of Tables

Table 1: Average Monthly Payments in 2018 .................................................................... 47

Table 2: Superordinate and Subordinates Themes ............................................................. 93

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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Acknowledgments

I want to express my utmost appreciation to Dr. Ben Carlsen for an enormous help, time,

and guidance throughout this entire study.

Secondly, I want to thank my supervisor Dr. Justine Haigh and Dr. Paul Shelton. First, for

showing interest in the topic, then guiding and motivating me throughout the entire

research and writing process. I appreciate your valuable feedbacks and criticisms at the

same time.

Thirdly, I want to thank all the respondents in my research for willingly responding to

participate in the study, but also showed great interest in the topic. Without you, I would

not have been able to write this dissertation.

Finally, I want to thank my family: two angels Krystyna and Marian (my parents), Helena

(my beloved grandma), Rodrigo, and Ewa for being with me throughout these years of

hard work.

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 8

Definition of Terms:

Debt is a duty or obligation to pay money, deliver goods, or render service under an

express or implied agreement. Also, one who owes is a debtor or debitor, one to whom it

is owed, is a debtee, creditor, or lender (Business.dictionary.com,n.d.).

Expenditure control is an essential element of budget or savings execution and financial

resources management accountability system. Expenditure control may include some

considerations for determining retirement outcomes, e.g., strategies for Social Security

withdrawals to optimize lifetime benefits, deferred income annuities, reverse mortgages,

and tax implications (Pfau, 2012).

Life Expectancy is the average period that a person may expect to live (English

dictionary.com, n.d.).

Retirement is described as a voluntary or forced withdrawal of a person from active

participation in a job or business (Business.dictionary.com,n.d.).

The Retirement Confidence Survey is a report by the Employee Benefit Research

Institute and Greenwald and Associates that contains a set of questions that are asked

annually, allowing critical attitudes and self-reported behavior patterns to be tracked over

time. Sample questions include those related to: How confident are Americans about their

retirement income prospects, including Social Security and Medicare. How much money

have they saved for their future, where are they putting their money and who they turn to

for retirement investment information and advice (The Retirement Confidence Survey,

2016).

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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Retirement Income is the amount of money an individual earns after retiring based on

retirement savings assets, Social Security allowances, pensions, stocks, mutual funds,

savings accounts, CDs, home equity funds, annuities, insurance, rental income, royalties,

or inheritances, etc. (Business.dictionary.com,n.d.).

Retirement Issues are the potential problems during the retirement period, which may be

influenced by individuals' savings behavior, the amount of personal debt, expenditures

before and during the retirement, and the estimated social security retirement benefits.

Retirement Planning is the process of determining retirement income goals and the

actions and decisions necessary to achieve those goals. Retirement planning may have

different forms, and most cases should include the evaluation of individuals' retirement

confidence, retirement planning strategies, assets allocation strategy, and setting

retirement financial goals.

Retirement Target Settings is a portfolio strategy that may involve setting target

allocations for "various assets classes and periodically rebalancing the portfolio back to

the original allocations when they deviate significantly from the initial settings due to

differing returns from various assets" (Investopedia, 2017).

Savings Behavior is the proportion of disposable income in a period that is not consumed

but instead invested (or saved) for future consumption or bequest (Siegel, 2010).

Social Security is a United States federal program of social insurance and benefits

developed in 1935. The Social Security program's benefits include retirement income,

disability income, Medicare and Medicaid, and death and survivorship benefits

(Business.dictionary.com,n.d)

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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Chapter 1

Introduction

There is a retirement crisis in the United States. Before World War II (WWII),

there were few retirement programs offered by employers; however, following the end of

WWII and well into the 1980s, relatively generous benefits were provided to a majority of

working Americans. During this period, the economy was industrially based, and unions

negotiated retirement benefits. The government also accommodated employees by

incorporating tax deferments and other advantages to employees and employers as an

incentive to participate in these plans. However, in recent years there has been "sea

change" in U.S. retirement plans and participation in benefits.

The majority of U.S. retirees in the mid to late 20th Century typically enjoyed fixed

income (defined benefit) pensions, job security, and, often, 401k, IRA's, etc. However, in

recent years this has changed considerably. The first "baby boomers" reached the early

retirement age of 62 in 2008. And the youngest baby boomers will attain it in 2026 and

become eligible for social security retirement benefits. According to Social Security

Administration data (2014), retirement benefits withdrawn have dramatically increased,

with now over 41 million (retired workers). Total Social Security beneficiaries, including

SSA Disability recipients, are 59 million. If Social Security policies don't change, it is

projected that the Social Security Old-Age, Survivors, and Disability Insurance (OASDI)

Trust Fund will be exhausted by 2041. And, most likely, the youngest contributors will not

receive all of their expected retirement benefits.

Private-sector defined benefit (D.B.) pension plans do not provide sufficient retirement

income anymore. And, increasingly, employers have switched retirement plans from

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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defined benefit (D.B.) to defined contribution (D.C.) pension plans, such as 401Ks,

453(b), 457(b), and IRAs. These plans do not include income guarantees and shift the

responsibility from the employer to the individual participant. Furthermore, in the past two

decades, large numbers of employer-sponsored plans were discontinued or initiated

reduced "matching" contributions by employers. In 2014, retirement benefits were

available to 65% of workers within the private sector. However, only 48% of workers

participated in contributory plans. Recent data reports that 86 million people are working

for the private sector of the 121 million total full-time workers in the United States (U.S.

Department of Labor, 2015). But almost 45 million full-time workers employed in the

private sector did not contribute any funds into any of the retirement plans.

In contrast, 89% of full-time workers employed in the public sector had access to

retirement plans, and 81% participated and contributed to retirement plans in 2014 (U.S.

Department of Labor, 2015). It is estimated that, even in the public sector, over 6.5 million

full-time employees did not contribute to any retirement plans. Consequently, the total of

full-time workers (private and public sector) who did not contribute to retirement plans

reached almost 52 million people in the United States in 2014. This has become an

important contemporary question for all Americans: How to prepare for a fulfilling and

affordable retirement.

Social Security also seems less and less secure, and the economy has taken its toll on an

aging population. Retirement strategies that once were perceived as safe are less viable as

workers are saying they need to work longer than anticipated (Timmerman, 2011). Many

people close to retirement have seen losses in their investments in recent years, causing

growing concern about how long their retirement will last (Bajtelsmit, Foster & Rappaport

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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2013). Because of current economic turmoil, people are paying closer attention to post-

retirement risks, and there is more focus on a balanced approach to secure the right

retirement strategy (Tacchino 2013).

Socio-Economic Factors

Improvements in medical care, life expectancy, technology, and health education,

along with the shifts to defined contribution plans, increasingly has shifted greater

responsibility for managing and planning retirement to the individual (Edwards &

Anderson, 2015). This shifting of greater responsibility for securing a comfortable

retirement is moving from employers and government agencies onto members of the labor

force. Based on previous research by Lusardi and Mitchell (2006), there are socio-

demographic, psychological, and external factors influencing the fact that over 50% of

Americans are increasingly at risk of being unable to manage living standards and

spending during their retirement. According to a 2014 Gallup poll, the average retirement

age in the United States remains 62, and the average combined life expectancy for females

and males has increased to 79 (World Bank, 2016). Consequently, the majority of

Americans need viable financial strategies to cover the gap between Social Security

benefits (and various retirement savings) compared with income requirements for a

comfortable retirement or continues working into advanced age.

Due to the aging of our society and the significant shifts in available retirement income

sources, retirement adequacy has become an essential issue for many retirees and the focus

of increasing research. Thus, there is an increasing spectrum of literature on retirement

adequacy published over the past decade. However, most of this research focuses on an

older demographic, typically 45 – 60-year-old. Available research has explored and

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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investigated the development of retirement readiness, examining various indicators. They

include income replacement ratio (savings adequacy indicator), capital accumulation ratio,

perceived income adequacy, retirement wealth ratio to needs, mortgage to income ratio,

and cash flow statement simulations, including the impact of risk mitigation on retirement

income adequacy. Still, there is an ongoing discussion concerning more appropriate and

accurate measurements of retirement capability.

The emphasis on studying different age group demographics is undoubtedly warranted and

can provide valuable insights and recommendations for those approaching retirement age.

However, this study recognizes the importance and benefit of addressing retirement needs

and planning at significantly earlier life stages. The oldest millennial generation will leave

the workforce between the ages of 62-65, meaning that they have approximately 25-28

years to prepare for retirement. That may seem like a lot of time, but some millennials

might meet their retirement goals sooner.

According to a U.S. News 2018 survey conducted on 2000 students, the majority want to

retire at an average age of 62, and 91% of surveyed millennials do not have retirement

plans yet. Based on another survey conducted by Wells Fargo in 2016, 64% of the

millennials will never accumulate $1 million in savings over their lifetime, and 52% of

respondents worry that they will lose their retirement savings in the stock market. The

sooner millennials begin to save and invest for retirement entails substantial probable

benefit, due to compounding of gains and correspondingly larger balances over the long-

run. Accordingly, this study uses college-age subjects, and while this demographic is not

accustomed to thinking in terms of retirement, it will ultimately prove to be a significant

life and career planning consideration for millennials and future generations.

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Structure of the Dissertation

The remainder of this dissertation is structured as follows: The literature review in

Chapter 2 provides characteristics of the millennial generation. This chapter also examines

relevant factors including socio-economic, retirement confidence, financial literacy,

retirement planning, assets allocation, awareness of retirement, preparedness and future

expectations toward retirement, savings, expenditure control, debt, social security system

issues, retirement expectations, and life expectancy. Also, this chapter investigates the

question about awareness of the significant retirement considerations and current issues

related to retirement planning and preparation among millennials.

Chapter 3 describes the methodology used in this study. Data was collected using semi-

structured questions and interviews, along with open-ended (exploratory) questions and

interaction. The interview schedule contains questions to collect information concerning

younger and older cohorts of millennial students' awareness of retirement issues, their

retirement preparedness, and future expectations. The interviews were conducted directly

to/with selected college students. Similarities and Differences among respondents were

analyzed concerning personal demographics and hearing their stories.

Background and Historical Perspective

According to the Workplace Flexibility report by Georgetown University Law

Center (2010), the American Express Company established the first private pension plan

in 1875 to build a stable and more career-oriented workplace. In 1914, the Internal

Revenue Service made pension plan contributions deductible for employees. And Glamser

(1981) reports that, in 1919, over 300 U.S. private plans had been established and they

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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covered 15 percent of the nation's wages and salaries. In 1926, the U.S. Congress passed

the Revenue Act of 1926, which exempted trust income coming from pension plans from

employees' taxable income and established pension plans as being for the exclusive

benefit of "some or all employees" (Flexibility, 2010).

In 1935, the Social Security Retirement Benefits Program was enacted and established

retirement age of 65. It should be mentioned that at the time of the original Social Security

Retirement Plan presentation to Congress, the government believed that a majority of

workers would not live for more than 62 years. Accordingly, in 1956, the Social Security

Act was amended and permitted men and women to elect early reduced retirement benefits

at the age of 62 (DeWitt, 2010). In 1958, formal 403(b) plans became law, and they

allowed employees of certain tax-exempt employers to defer receipt of a currently earned

salary. 403(b) plans are available to governmental and public school employees. By the

end of 1960, 41 percent of all private-sector workers were covered by pension plans

(Flexibility, 2010).

The Revenue Act of 1978 established deferred plans such as IRS Code Section

401(k) plans, which allowed for pre-tax employee contributions to such plans (Surrey,

1978). Employees were permitted to withdraw contributions from such plans after age

fifty-nine and a half or upon separation from service (currently "severance from

employment"), or because of hardship or disability. According to Kotlikoff& Smith

(1983), in 1980, almost 36 million private-sector workers (46 percent of all private-sector

workers) were covered by an employer-sponsored pension plan. In 1986, the IRS

established section 457(b) plans as nonqualified, deferred compensation plans that can be

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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recognized by state and local government, and tax-exempt employers (Joulfaian&

Richardson, 2001).

In 1992, the Unemployment Compensation Amendments were passed, and they

imposed a 20 percent mandatory withholding tax on lump-sum distributions that are not

rolled over into another qualified retirement plan, annuity, or individual retirement

account (IRA). This amendment also liberalized rollover rules and required plan sponsors

to transfer eligible distributions directly to an eligible plan if requested by the participant.

Also, in 1996, the Small Business Job Protection Act (SBJPA) was passed by Congress,

which provided design-based "safe harbor" methods for satisfying the nondiscrimination

tests applicable to 401(k) plans. Itintroduced SIMPLE plans (savings incentive match

plans for employees) for employers with 100 or fewer employees. At the end of the 1990's

plans with a 401(k) had over 30 million active participants with total assets of $1.06

trillion (Kilgour, 2000).

In 2001, the Economic Growth and Tax Relief Reconciliation Act of 2001

(EGTRRA) enacted many changes to 401(k) plans and increased elective annual deferral

limits for 401(k), 403(b), and 457 plans (Choi, Laibson, &Madrian 2004). According to

FACS (2005), in 2003, the "estimated number of plans with a 401(k) feature was 438,000

with total assets estimated to be $1.9 trillion and 42.4 million active participants."

In 2006, the Pension Protection Act of 2006 (PPA) was enacted and made compensation

and contribution limits permanent. This Act also allowed for automatic enrollment in

Code Section 401(k) plan features, and it permitted a distribution from a defined benefit

plan to an individual who reached age 62 and had not terminated employment (Beshears&

Weller, 2010).

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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In 2009, President Obama signed the "American Recovery and Reinvestment Act of

2009," which increased the Social Security Administration budget by $1 billion and an

additional $500 million for processing disability and retirement workloads. The bill also

provided a special one-time economic recovery payment of $250 to adults who were

eligible for benefits (Act & Gran, 2009).

In 2013, the Internal Revenue Department started to allow the conversion of

existing traditional 401(k) retirement plans and their contributions into Roth 401(k) plans.

Therefore, since 2013 all employers must comply with this requirement, and they have to

offer both options: Traditional, and Roth plans both explicitly permit such a conversion

(Caplinger,2013). Additionally, major improvements were initiated by President Obama,

who signed into law the "Consolidated Appropriations Act of 2016." This piece of

legislation includes numerous tax provisions, several of which will directly affect IRA and

qualified retirement plan providers. Some of the major changes include Qualified

charitable distributions (IRA owners can benefit from tax-free qualified charitable

distributions from IRA accounts), and rollovers to Simple IRAs. The Act of 2016 also

expands the types of contributions that may be made to Simple IRAs; for example, most

types of rollovers like other IRAs and from qualified plans such as 401(k) plans.

In 2016, the White House released a fact sheet that outlines retirement savings

changes. President Obama proposed several changes within the Retirement Savings

Reform Act to ensure universal access to retirement savings contributions accounts and

plans. The purpose of this reform is to make retirement plans and savings more portable.

This reform offers tax credits to small businesses who participate in a new 401(k)

retirement plan, and requires companies with existing plans to offer long-term and part-

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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time employees (who work more than 500 hours per year). Retirement plans, and makes it

easier for businesses to pool their retirement plans to bring down expenses through

multiple employer plans. The entire proposal of changes was presented in the 2017 fiscal

year budget (Korte, 2016).

In May 2019, Congress passed the Retirement Enhancement Act, which known as

Secure Act, which includes a provision making it easier for all small businesses to band

together and offer retirement plans to employees. Also, this act opens the door for long-

term part-time employees to gain access to retirement plans. The age that Americans may

start to draw money from savings was raised from seventy and a half to seventy years.

Also, it expends years for people to contribute to retirement plans. The Secure Act created

a new rule that could expand lifetime-income options within workplace plans, such as

annuities, to help people establish a reliable stream of income in retirement. It would also

make it easier for employees to transfer retirement plan assets when they change jobs.

Also, employees do not have to pay the penalty for withdrawing money from savings for

the birth and adoption of the child (Rubin & Tergensen, 2019).

Incentives and Rationalization

The retirement landscape continues to evolve, so it is important to provide

millennials with more information about retirement so they may plan better for retirement

and develop effective retirement strategies. Another reason for this study is that that the

retirement dilemma is a solvable problem and, in this researcher's opinion, can be largely

be alleviated through improved financial-education planning and modeling, with an

emphasis on younger demographics including the Millennial Generation.

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Purpose of this Study

The purpose of this study is to ascertain millennial students' awareness of

retirement Issues, their retirement preparedness, and future expectations. Multiple

relevant factors were identified and included in an interview schedule administrated to

participants. The participants represented two cohorts of younger and older Millennials.

An additional purpose of this study is to provide some recommendations for millennials,

which will enable them to better prepare for retirement.

Research Questions

Primary research question

1. Are Millennial students (younger and older cohort), as represented by the participants

in this study, aware and prepared for their future retirement, and is this consistent

with their future retirement expectations?

Secondary Research Question(s)

1. Awareness: Are younger and older millennial students aware of the issues,

requirements, programs, and challenges involved in retirement?

2. Preparedness: Are Millennial (younger and older cohort) students' making, or have

they made appropriate retirement plans?

3. Future Expectations: How well do they expect to live during retirement realistically,

and are they adjusting their awareness and preparedness and accordingly?

Due to socio-economic factors, retirement confidence, financial literacy, retirement

planning, assets allocation, awareness of retirement issues, saving, expenditure control,

debt, social security system issues, retirement expectations, and life expectancy, and other

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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factors; millennials between the ages of 21 to 27, who are college students, may not be

adequately preparing for their future retirement.

1) Specifically, for research participants, this study addresses the following question(s):

To ascertain through a narrative research approach awareness of retirement research,

retirement preparedness, and future expectations millennial college students and to

analyze and report those findings as a basis for understanding the implications and

development of potential educational policies and potential innervations.

2) Are millennial college students aware of the major considerations, factors, and

requirements to adequately prepare for retirement?

3) What activities are they engaged in to prepare for their eventual retirement?

4) What actions have they taken?

5) What retirement expectations do they have for their life in retirement?

Note: Some individuals can be realistically demonstrating a higher level of inevitability

(are more specific) about their predictions and current retirement savings while others are

not.

Delimitations

Some researchers discussed the limitations of the historical approach research.

They referred to data collections, including the merits and drawbacks of various data

collection methods across a range of studies. And, they concluded that limitations are not

always reported "in sufficient detail and caution researchers to acknowledge and discuss

the advantages and disadvantages of their chosen collection method" (Brocki & Wearden,

2006). The scope of this study has been intentionally limited to participants who are

College Students attending one university in the South Florida region. The sample was

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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selected based on opportunistic and emergent sampling chosen by the researcher. The

researcher also made decisions during the process of collecting data based on in-depth

interviews. Limitations of the narrative design also relate to the understandings of the

stories of the participants (Clarke, 2009). Other researchers question the rigor and validity

of these research studies (Yardely, 2000 & Barbour, 2007). It should be noted, this study

does not investigate millennials' generational characteristics (e.g., demographic, or socio-

psychological) but focuses on millennial students' awareness of retirement issues, their

retirement preparedness, and future expectations.

The study is also limited by interview schedule questions design, and it does not

provide a statistical significance. However, the methodology will provide practical

importance in regards to college students (Business Majors) and their retirement

awareness and preparation. Although this limits the number and type of questions, it

benefits in the areas of research design, generalizability, and content and reliability

elements. Also, the study is limited to a "snapshot" in time during a limited period in

December 2019.

Researcher's Perspective

His experience has influenced the researcher's perspective in two cultures: 1) My

country of birth, Poland, and 2) My "adopted" country, the USA. Also, for my generation

(Generation Y), there is a vast difference between the two countries in terms of retirement

planning and retiree experience. My academic and professional expertise has dramatically

influenced my perspective as an accountant and my work in finance. Finally, my research

perspective has been molded by my personal experiences and my natural inquisitive.

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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Incidentally, using this study as a partial basis, I plan to one day write a book about

intelligent retirement planning.

Expected Outcomes

The expected outcomes of the study are to address an apparent literature gap in

understanding retirement awareness and preparedness by millennials' future expectations

through interpretative phenomenological analysis using narrative design. Also, this study

may provide a better understanding of the factors influencing younger and older

millennials' retirement awareness and preparation and future retirement expectations. This

study also may identify some differences in the level of knowledge, preparation, and

future retirement expectations between younger and older cohorts of Millennials' students.

Furthermore, this study can help to benchmark college students' retirement planning

awareness and preparedness and future hopes and then compare with literature findings.

This study can help to understand relevant factors and how they influence millennial

students' knowledge of retirement Issues, their retirement preparedness, and future

expectations. This study may provide insights that can help financial planners and

educators, as well as policymakers, understand younger and older Millennials' current

retirement situation. Also, the results can help the Millennials engage in saving for their

retirement. This study can also help to make sense of how participants in this context use

information from their business courses in their future retirement planning and to build

(provide) a foundation for future qualitative research.

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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Chapter 2

Literature Review

Introduction

This literature review discusses concepts and research related to the purpose of this

study and related research questions. The literature review offers the foundation for how

this study may contribute to millennial students' awareness of retirement issues, their

retirement preparedness, and future expectations. As its foundation, the research begins

with an overview of millennial generation characteristics and their retirement awareness

and preparedness based on the literature (brief evaluation). This literature review is, of

necessity, broad in scope because of the multiplicity of factors including socio-economic

factors, retirement confidence, financial literacy, retirement planning, etc., and specifically

millennial students' awareness of retirement issues, their retirement preparedness and

future expectations. An additional purpose of this literature review is to provide a

foundation for future studies on Millennials' retirement awareness which will enable them

to better prepare for retirement.

The Millennial Generation

In the United States, Millennials are the children of the Baby Boomer generation.

This generation is also known as the "Me Generation," which refers to the people born

between the early 1980s and 2000s (Twange, 2014; Romsa, Bremer & Lewis, 2017). This

same age group is also called the "Peter Pan" or "Boomerang Generation" because of the

tendency of many of them to move back with their parents due to economic constraints

and a growing propensity of delaying marriage, career, and adulthood rites (Sørensen,

Williams, Khajuria & Skouby, 2017). This generation includes about 80 million people in

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the USA, and they are rapidly taking over from Baby Boomers, many of whom are now

over 60 years old. The Millennial generation is also the first generation to grow up in an

advanced technology era, which includes cell phones, I-pads, computers, Instagram,

Facebook, internet, electric cars, console video games, and full multimedia (Nikirk, 2009).

Howe and Strauss (2000) identified several of the most common characteristics of

millennial generation, such as: "special, sheltered, confident, team-oriented, pressured,

ambitious, and achieving."

Most of the generation of older Millennials was wanted as children and "have

absorbed the adult message that they dominate America's agenda" (Howe & Strauss,

2007). Also, this generation grew up in an era where unprecedented values were placed on

children. According to Twenge (2012), because Millennials feel more special, they

became more assertive and narcissistic with lofty expectations and very high rates of

depression. Millennials often reevaluate their life priorities, and they choose work that

allows them to enjoy their personal life. They do not expect to work long hours like their

Boomer parents (Loughlin & Barling, 2001). Millennials also have high expectations

regarding promotion, pay raises, and future retirement benefits. Research by Burkus and

Erickson (2010) reported that many Millennials wondered why they did not receive a

promotion and pay raises after six months on the job.

Older Millennials also appear to be a generation that is sheltered by parents.

"When Millennials entered college, administrators began reporting a huge increase in

'helicopter parents,' who regularly phone and email faculty and deans to talk about grades,

moods, foods, or whatever, in the belief that their children require extra care" (Howe

&Straus; 2007). They also grew up in the era of safety measures like car airbags,

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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individual car seats, baby on board signs, and school lockdowns. Millennials were

supervised continuously and directed by parents and teachers. As a result, high

expectations were placed on them (Lerner, 2015), as this generation was placed in

structured and scheduled activities during their days. The Millennials were sheltered and

made to feel special; therefore, they developed a sense of entitlement. In a recent study

conducted by Johanson (2016), Millennials' parents shelter them from adversity;

consequently, they tended to hover and make decisions for them. This phenomenon may

have contributed to creating a generation of highly stressed individuals. This generation

exhibit difficulty with problem-solving and conflict resolution (p. 208). Sheltered young

adulthood for Millennials may have consequences for their retirement awareness,

planning, and preparation.

Both younger and older Millennials also appear to be motivated, goal-oriented, and

confident about themselves and the future. Regarding confidence, Howe and Strauss

(2007) describes Millennials as very optimistic and connected to their parents. Their belief

motivates them to seek much more in return for their efforts in the workplace than a

paycheck. They ask for work that is meaningful and fulfilling (Yang & Guy, 2006).

According to Schwab (2017), especially younger Millennials, are more confident in

making investment decisions than their older counterparts. They are also optimistic about

the stock market: 71% of Millennials investors predict a bull market in the next one to

three years, compared with 50% of Baby Boomer investors. Millennials also appear to

feel more confident about their financial knowledge: 42% of millennial investors say they

are very knowledgeable about investments compared with 17% of Baby Boomers

(Securian Financial Group, 2017). Whatever the method by which Millennials save for

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retirement, they remain confident in their long-term financial security. Eighty-five percent

of Millennials say that they have already or will have enough assets and financial

resources to lead the kind of life they want (Pew, 2014).

Regarding team-orientation, Howe & Strauss (2007) described the members of

Millennials generation as group-oriented rather than being individualists. This generation

prefers egalitarian leadership more than hierarchies, and Millennials may sacrifice their

own identity to be a part of the team. Howe and Strauss (2007) also described Millennials

as group-oriented cohorts that may "politely" exclude other generations. Millennials do

not like to stand out among their peers; they want to be seen as a part of the group. They

also dislike selfishness and are oriented towards service and learning.

Millennials attended school in an era where they were frequently assigned to group

projects, teamwork, and group presentations (Chou, 2012). Therefore, the millennial

generation tends to emphasize more the social aspect of the workplace (Kuron, Lyons,

Schweitzer & Ng, 2015). Also, older Millennials prefer to collaborate and learn from

teachers, managers, and parents. They also seek feedback and friendship in their

workplace (Ng, Lyons& Schweitzer, 2012). They will need to be more individualistic in

preparing for their retirement and not leave these matters collectively to the government,

employers, or institutions.

Howe and Strauss (2007) further described the Millennials being pressured: "If

many college-graduating millennials are coming home to live with their parents it's not

because they want to so much, but rather because they want to avoid making a wrong

career choice at a critical point in their lives". Similarly, the Millennials seek help with

their investments. Eighty percent (80%) would appreciate personalized retirement

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investment advice for their 401(k) s to avoid making wrong retirement investment

decisions. Ninety-three percent of millennials utilized a financial wellness program if their

employers provided it (Backman, 2017).

Also, Millennials are conventional and respectful to the point of not questioning

authority, for example, the government. This generation is civic-minded and believes that

the government knows what the best for them is (Howe & Strauss, 2003). However,

Millennials are pessimistic about the Social Security benefits; 51 % of all Millennials hold

the opinion that Social Security is on the path to bankruptcy. According to a 2014 survey

from Pew Research Center, 39% of millennials believe that they will receive reduced

retirement benefits, and 6% expect their full benefits, while the rest believe that they will

not receive any benefits. According to Gregory (2017), Roming (2019) both "younger and

older Millennials are famously anxious about whether Social Security will exist when they

retire — which is unfounded but not surprising, since millennials have heard myths about

the program's future their entire lives" (p.5).

Required Social Security contributions also erode younger and older Millennials

opportunities to save money, leaving the millennial generation less of a safety net and

forcing it to take more debt to cover unexpected expenses.

Awareness and Preparation Factors Influencing Retirement

The United States is not the only country with an aging population. For example,

Poland, Germany, Canada, England, Japan, and Spain all have an older demographic than

the U.S. (Browan, 2011). According to Ortman, Velkoff, and Hogan (2014), the

population aged 65 and over is projected to reach 85 million people in 2050 in America.

The Social Security Administration (2019) reported that more than sixty-four million

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Americans currently collect Social Security Retirement benefits with a $1,461 average

monthly allowance, and they make up 19.4 percent of the population. Millennials begin

working in the era when defined benefits, e.g., pension plans, are becoming rarer because

many U. S. companies do not offer this kind of project anymore. The Social Security

Administration estimates that almost sixty-five million people will receive social security

benefits in 2019 (Social Security Sheets, 2019). Based on the same source, nearly fifty

percent of the workforce in private industry does not have any pension coverage, and

thirty-six percent of workers reported that the spouses do not have any savings forward

retirement.

Structurally, the Social Security system requires a reform as its payments are a

declining share of earnings while payouts continue to increase. Therefore, millennial

preparation for retirement may take different forms, and, in most cases, this situation may

influence millennial students' awareness of retirement issues and their retirement

preparedness.

Socio-economic Factors

The Millennial generation is already the largest demographic group in the U.S.

labor force and has surpassed the older Baby Boomer generation. Millennials are just

starting to form families. Their median household income is $35,592 with some younger

Millennials who work full time earning twenty percent less than baby boomers at the same

stage of their life, according to the U.S. Bureau of Labor Statistics (2016). The Bureau of

Labor Statistics reports for wage and salaried workers but excludes the self-employed.

Millennials lost a higher wage advantage due to the (2008-2010) recession when

wages were depressed. Those who have pursued higher education have higher earnings

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but also tend to have a massive student loan debt burden (DeVaney, 2015). According to

the Bureau of Labor Statistics (2017), in Florida, full-time workers under age 35 made an

average of $27,500, substantially less than the $35,592, which was the national average

for Millennials. Lower Millennials' earnings can be explained by "their youth and

inexperience and other factors because many Millennials graduated during the recession

period which research has shown is likely to be a lifetime drain on their average earnings"

(Vandermey & Rapp, 2017).

It should be noted that many Millennials still live with their parents or in a college

dorm. Some of them have a shared living situation. In 2016, the Millennials age between

the ages of 18 and 35 headed 28 million households less than previous generations, such

as Generation X or Baby Boomers (U. S. Census Bureau, 2017). Also, more Millennial

families live in poverty than households headed by Generation X and baby boomers.

According to the Pew Research Center (2017), 5.3 million of the nearly seventeen million

families living in poverty in the U.S. were headed by Millennials.

Furthermore, millennial households dominate the ranks of the nation's renters. In

2016, almost nineteen million Millennials rented their homes out of 45.9 million

households. In contrast, only 12.9 million Generation X and 10.4 million Baby Boomers

households were renters in 2016. According to the same PEW Research Center survey,

Millennials for the first time surpassed all other generations in the number of household

heads who were single mothers (4 million households were headed by a single mother

who lived with a child younger than 18 years old).

On the other hand, Millennials are the most educated generation. The Pew Research

Center (2019) reported that 63% of Millennials value a college degree or plan to get one.

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Among Millennials, around four-in-ten (39%) of those ages 25 to 37 have a bachelor's

degree or higher, compared with just 15% of the Silent Generation, roughly a quarter of

Baby Boomers and about three-in-ten Gen Xers (29%) when they were the same age. Of

that number, in 2018, almost forty-five percent of millennial men have already graduated

from college, and according to the same survey, thirty-six of millennial females already

hold a college degree. In contrast, only twenty percent of Generation X females and

eighteen percent of Generation X males has college degrees. It should be noted that more

millennial women are earning degrees than men.

Overall Millennials Retirement Confidence

In February 2017, Bankrate published the results of its Financial Security Index.

The results showed a slight improvement in Americans' retirement confidence. However,

far too many Americans still have not saved enough to meet their financial needs. This can

have an impact on millennials' retirement preparedness and shape their future retirement

expectations.

The 2018 Retirement Confidence Survey, a report by the Employee Benefit

Research Institute and Greenwald and Associates (2019), showed more than half of

workers feel they are unable to save for retirement and save for other financial goals at the

same time. Moreover, there are other financial goals currently more important than saving

for retirement. The same survey found that forty of workers said they have less than

$25,000 in savings and investments. Also, 2019 CFA institute studies revealed that

"younger and older Millennials, are overconfident in general, about their financial lives,

including retirement" (p.1).

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According to Olson (2014), the people of the millennial generation are not

preparing for retirement very well at all. They believe that they still have plenty of time to

save for retirement. Olsen (2014) also pointed out that there is lower retirement security

than a decade ago, and "Millennials must acknowledge the special economic challenges

they face today" (p.51). According to a Gen Forward study from the University of

Chicago (2017), Millennials lack confidence in the future of Social Security retirement

benefits. Despite their pessimism, some older Millennials believe that Social Security

remains an essential component of their plans for living in retirement. Besides, the PEW

Research Center (2014) shows that Millennials perceive their financial prospects are

favorable even in the face of a harsh economic climate and gloomy evidence about their

retirement preparedness. But being financially secure in retirement takes more than

optimism.

Millennials Retirement Awareness and Preparedness

During the past decade, the competitive restructuring/adaptation of American

businesses and the recession of 2008 shifted more employees away from defined-benefit

(DB) pensions in the direction of defined-contribution (DC) retirement plans, such as

401(k), 403(b), and 457(k) (s). The DB retirement plans are employer-sponsored promises

with specified monthly benefits. In many cases, the DC retirement plan formula is based

on an employee's return on investments. Retirement income in the USA typically rests on

three pillars: "Social Security, employment-based plans such as Defined Benefit (DB),

Defined Contribution (DC) plans, and private saving" (Hanna, Kim & Chen, 2016).

The emergence of DC retirement plans has transferred investment risk from the

employer to the employee. According to Merton (2014), a recipient of the 1997 Nobel

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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Prize in economics science, "DC plans—epitomized by the ubiquitous 401(k)—have now

become the main vehicles for private retirement saving. And the move to defined-

contribution plans arguably reduces the liabilities of the business as well" (p. 142). The

author also noted that offering a spectrum of investment decisions to employees with

limited financial preparation and expertise creates some significant issues and potentially

disastrous economic outcomes.

Also, a Wells Fargo Institute Research (2017) report shows that a sizable forty-two

percent of Millennials aged 17 to 35 do not have retirement savings, a fact many younger

employees attribute to a lack of disposable income. Merton (2017) classified the DC

retirement plans as framing choices that shift "focus away from retirement income on

returning on investment" (p. 142). All available DC plans are focused on investment

decisions, including the value of the funds and return on employees' investments and not

on negotiated or predetermined retirement amount pensions. Merton (2014) stated that the

main concern about savings for the millennials is: "Will we have sufficient income in

retirement to live comfortably?" The risk and return variables that now drive investment

decisions are not being measured in "units" that align with savers' retirement financial

goals and their likelihood of meeting them. Thus, it cannot be said that savers' funds are

being well managed."

Furthermore, the majority of older and younger millennials plan to work during the

retirement and "six-in-ten employed millennials plan a 'phased' retirement that involves

work in some capacity, and about half of them plan to continue working for a significant

time after retiring" (Collinson, 2014). During retirement this kind of generation will still

work by necessity not by choice. Unfortunately, the pension for millennials is not seen any

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more as the end of work," as it once was, but something in between full-time work and

full-time leisure" (Schreur, 2014).

Millennials are a new generation for many reasons. First, the majority of them live

with their parents for financial reasons, second, they plan to work during retirement, and

many of them lack confidence in the future of the Social Security System. In contrast,

fourth, the majority are generally optimistic about their retirement. Experian (2017)

reported that Millennials have the lowest credit scores of any generational category, and

they hold an average of $37,172 in college debt. It looks like Millennials' lack of financial

literacy and denial of "reality" may be a significant issue for this generation. However,

according to a Securian Financial Group (2016) survey 42% of Millennials investors say

they are very knowledgeable about investments compared with only 17% of Baby

Boomers. This issue of perception vs. practice is concerning.

Retirement Assets Allocation

The financial crisis beginning in 2008 had a massive and immediate impact on

retirement plans. Between the peak of the stock market on October 9, 2007, and the

bottom in March 2009, equity prices fell 50 percent (Hurd & Rohwedder, 2010). Based

on Federal Reserve information (2019), the households' finances improved in 2019 (first

quarter), and the real estate equity is up to ten percent, overall households' financial assets

increased by eight percent, and debt decreased by three and a half percent. However,

according to Conerly (2018), there is some possibility of a recession in 2020, which can

affect retirement plans caused by the collapse in international commerce due to President

Trump's trade wars. That's possible if negotiations go south, ruined by competing egos and

economic ignorance. Most of the risk is related to China. Cutting our exports to China

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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would be a hit to the economy, but not catastrophic. Reducing our imports from China

would raise consumer prices and disrupt supply chains for American manufacturers, so

trade conflict is undoubtedly bad for us.

Recalling the 2008 recession, in 2008-2010, 401(k) plan participants took a direct

hit. Individuals saw the value of equities in their 401(k) plans or IRAs decline by $2.8

trillion. In 2010, despite a partial recovery in the stock market, combined 401(k) and IRA

balances of households approaching retirement were only $120,000 (Munnell& Webb,

2015). This amount was virtually unchanged from 2007 despite the more significant

percentage of people who have spent more of their working life covered by a 401(k) plan

than in previous cohorts (Munnell& Rutledge, 2013).

Besides, a Gallup report (2019) indicates that only half of U.S. households owned

stocks and mutual fund shares in 2018. Two-thirds of Americans, including Millenials, do

not even participate in or have access to a 401(k) plan, according to the U.S. Census

Bureau (2019). The National Retirement Risk Index (NRRI) compares projected

replacement rates – retirement income as a percent of pre-retirement income – for today's

working-age households to target rates that would allow them to maintain their living

standards in retirement. Using the National Retirement Risk Index (2017), only 20% of

working American households will be able to maintain their pre-retirement living

standards (Munnell, Webb, and Golub-Sass 2012). Another study using the Health and

Retirement Study (HRS, 2013) concludes that about half of pre-retirees are not on track to

maintain their pre-retirement consumption levels (Munnell, Orlova & Webb 2013).

A review of academic journals, reports, studies, articles, and surveys suggests that

the millennial generation "wants it all" and "wants it now" in terms of good pay,

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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retirement benefits, work and life balance (Lyons & Schweitzer, 2010). Millennials began

their working lives at the time when pension plans (as mentioned above) are becoming

rarer, and Social Security system payments offer a declining share of earnings. Therefore,

future retirees will most likely rely on individual savings to meet their financial needs and

secure themselves during their retirement (Schreur, 2014).

Research by Securian Financial Group (2017) found that millennials are confident

about the market: 71% of millennial investors are optimistic and predict a bull market in

the next one to three years. Also, almost fifty percent of older millennial investors seek

investment advice from financial advisors. This generation cited one million dollars as the

amount they would need to save to feel confident in retirement. Based on the same

research, 39% of older Millennials are moderate investors, and 15% are very conservative

investors. The Millennial generation is willing to take more investment risk than older

Americans, which makes sense because they have a longer time horizon to recover from

possible market losses than Baby Boomers, for example.

According to the Wells Fargo Investment Institute's 2017 survey, nearly half of

Millennials hadn't started to save for retirement, which is 20% less on average compared

to the Baby Boomers generation when they were the same age. Interestingly, millennials

also spend around $2,200 per year on average for travel. Therefore, "many Millennials

will need help when it comes to planning for retirement and managing their finances"

(Johnson, Smith, Cosic & Wang, 2017).

The good news is that a large portion of millennials still has some time to begin

retirement investments. The research conducted by Scarborough Capital Management

(2017), showed 72.8% are investing from 1% to 10% of their income toward a retirement

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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plan, 58% are deferring 5% to 10%. Besides, Scarborough Capital Management's recent

survey found only 22.5% of individuals aged 18 to 34 put 15% or more of their paycheck

into their 401(k), despite calls from professionals who say at least 15% is needed for

retirement savings. Another survey conducted by Natixis 2016 Retirement Plan

Participants Study found that the average Millennial with access to a defined contribution

plan such as 401(k) or 403(b) began saving in their retirement plan at the age of twenty-

three. Also, according to the same survey, seventy-two percent of employed Millennials

participate in retirement plans, and they contribute at least seven percent of their annual

income.

There are an ongoing discussion and research on building an optimal retirement

portfolio and achieving financial goals. The literature about optimal portfolio issues and

setting up retirement financial goals can be categorized into two different types (risk

aversive and life cycle planning), beginning with Markowitz (1952), who has extensively

researched the optimal retirement portfolio problem. According to him, different

portfolios have different risk and return ratios. Merton and Samuelson (1992) built a

theoretical framework for optimal portfolios and discussed multi-period

consumption/investment issues. The authors researched individuals' optimal portfolio

choices with a Constant Relative Risk Aversion (CRRA) utility. They assumed that the

individual has assets at the end of the period and decides how much to invest in a risky

asset with a distributed return factor. They also assumed that individuals do not work

anymore, and they do not generate any labor income.

According to Booth (2003), Merton and Samuelson's optimal portfolio model

(1992) can be an extension "of the life cycle approach to savings, and it solves the

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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retirement problem simultaneously with the consumption problem" (p. 2). Standard goals

in personal retirement financial planning are often represented as "60 at 65" or "70 at 67".

This means that the retirement target achieves 60% or 70% of pre-retirement income at

age 65 and 67, respectively. A saver or financial planner should then be able to solve any

issue related to retirement goal achievement. To illustrate this example, an individual can

change the retirement savings rate, the date of entering retirement, or implement the asset

mix until an acceptable, modified, or new retirement planning strategy has been

developed.

Setting a retirement target date has become an essential strategy for building

retirement wealth for millennials (Schaus & Gross, 2010), as direct benefit (D.B.) pension

plans are no longer existent in most cases. Many retirees today are relying upon their

direct contribution (D.C.) strategies for the primary source of retirement wealth. They also

are using the retirement target date as the primary calculator for determining investment

requirements to meet desired retirement outcomes. Millennials will have to rely on

individual portfolios, and personal savings to meet their financial security requirements

during retirement. Because the retirement scene is changing, choosing a target date has

become a more complex task. The Millennial generation faces a complex and mostly

inefficient retirement-policy landscape.

Moreover, there is a profound inability of U.S. policymakers to develop an

efficient Social Security System. This is a significant obstacle for long-term planning.

Additionally, the policies that are in place support savings for mostly higher-income and

higher-wealth households (Schreur, 2016). According to Schreur (2014), millennials think

that Social Security will not be a reliable source of income during retirement. Almost 80%

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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of Millennial workers are concerned that Social Security will "not be there for them in

retirement" (Collinson, 2014). The FEE (2019) also concluded that most of the

millennials expect that they would not receive any benefits from the Social Security

system. However, this generation is very optimistic, and it hopes to save for retirement.

Millennials remain confident in their long-term financial security. The Pew

Research Center (2018) survey shows that most of the millennials say that "they either

already have or will have enough money to lead the kind of life they want" (Pew, 2018).

Also, millennial workers are confident that they will fully retire with a comfortable

lifestyle. Besides, about six-in-ten of millennial expect to work during their retirement in

some capacity, and five out of ten millennial plans to continue working full-time after

retiring (Collinson, 2014). Millennials' lack of wealth in their 30s relative to earlier

cohorts should be a source of great concern. Given that they will live longer than previous

groups and that they will have to wait until age 67 to collect their "full" Social Security

benefit, which produces a substantial actuarial reduction for monthly benefits (Munnell &

Hou, 2018).

Millennials Savings

Research shows many different approaches (theoretical and empirical) to evaluate and

analyze individuals' savings behavior. According to Knudsen, Heckman, Cameron, and

Shonkoff (2006), research about individuals' savings behavior is related to environmental

and even genetic factors. There are some specific factors that moderate genetic risk-taking

tendencies of the individual to a particular action, including saving.

Using data from the 2017 Survey of Consumer Finances (2019), thirty-seven

millennials born between 1981 and 1991 (older cohort) do not have any retirement

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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savings, including retirement account ownership and Balance. According to the same

research, millennials with retirement accounts have an average of the accumulated amount

of $21,333. "Factors that affected retirement saving included age, education, total

household income and assets, job tenure, self-employment, having a retirement saving

motive, having a defined benefit plan, overspending, and risk tolerance" (Rui & Guopeng,

2018).

A particularly interesting study was performed by Lim, Hanna, and Montalto

(2015). The researchers examined factors affecting individual and household savings for

retirement. One of the elements was consumer optimism, which was added as a variable

and then correlated with life expectancy. The entire study was based on the Survey of

Consumer Finances datasets. The authors applied two multivariate analyses to illustrate

that including optimism variables in the model improved the explanation of household

saving behavior.

In contrast, pessimism as a variable can be considered an issue and an obstacle for

individuals to inhibiting their retirement savings. Study results showed that participants

who are optimistic about future income, the planned economy, and life expectancy are

more likely to be savers than are pessimistic individuals. Millennials generally perceive

their financial prospects favorably despite gloomy evidence about their retirement

preparation (PEW Research Center, 2017).

Subsequent studies by Sass (2016) showed that behavioral interventions have a

significant impact on retirement savings, as can the federal government encouraging

employers to offer retirement plans. Most employers who offered retirement plans used

these plans to increase employees' participation in self-directed retirement plans.

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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However, many employers have made significant reductions in employee/employer match

savings retirement rates, and this has an overall negative influence on retirement savings.

According to Van Raaij (2016), people tend to postpone their decision to start

saving or begin saving more for their retirement. The researcher suggests that one way to

overcome procrastination is to divide the big task into smaller and less complex jobs, a

type of partitioning. For example, Millennials can begin saving at a very young age and

contribute a lower percentage of their income. The second recommendation is to make the

task less complicated by accepting satisficing rather than maximizing solutions.

"Satisficing" means that an acceptable alternative is good enough and not necessarily the

best choice. A third way is committing now to start saving now, or shortly. And a fourth

way is to start saving after a salary increase (Van Raaij, 2016).

The evidence about the saving habits of Millennials is mixed. One optimistic

report was published by Merrill Lynch (2014), which applied the term "super savers" to

Millennials. According to the survey, Millennials started saving for retirement earlier than

previous generations (Collinson, 2014) and are putting away a relatively more significant

percentage of their salaries (8 percent) in retirement savings compared to other

generations. However, these results apply only to Millennials who are currently employed.

In the case of the reported high retirement-contribution percentage, the results apply only

to the subset of employed Millennials who were offered an employer-based retirement

plan and opted to participate, so this provides a limited picture of retirement preparedness.

It should be noted that many millennials still do not work, even though, by 2020,

millennials will make up over a third of the global market (Millennial Careers, 2017).

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Millennials Expenditure Control

Other considerations for determining retirement outcomes are strategies for Social

Security withdrawals to optimize lifetime benefits, deferred income annuities, reverse

mortgages, and tax implications (Pfau, 2012; Seibert & Meredith, 2010). An accepted

practice for determining target retirement spending is to use 70-78% of pre-retirement

income (Seibert & Meredith, 2010).

However, because this is an average estimation only, it is best to determine actual

spending needs with the help of an advisor who can better help predict real costs for aging

adults (Bajtelsmit, Foster & Rappaport, 2013, Seibert & Meredith, 2010).

An Employee Benefit Research Institute Survey (2015) showed that 83% of all workers

reported they were "not too" or "not at all" confident they would have enough money to

pay for their expenses in retirement. The other 17% said they were "very" or "somewhat"

sure they could pay the costs. Typically, retirees will spend more in the early years of

retirement, see expenses dip in the middle, then rise as they near the end of their lives and

medical expenses climb. Also, not all expense categories grow at the same rate of

inflation, and this needs to be considered when forecasting long-term costs (Biggs, 2014).

Subsequent studies by Yogo (2016) showed a life-cycle model in which

expenditures such as "consumption and portfolio decisions respond endogenously to

health shocks, and explains key facts about asset allocation and health expenditure across

health status and age." Inaccurate asset allocations and high consumption can create an

issue during retirement. Boyacioglu (2016) investigated the association between

retirement choices and health care expenditures using data from the data U.S. Health and

Retirement Study. The analysis revealed that retirement status is not predictive of

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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healthcare expenditures. However, the author found significant evidence that the overall

relationship between healthcare expenditures and retirement status is masked by the fact

that this relationship is harmful to women but positive for men. In other words, retired

men experience higher medical expenditures, while retired women do not (proportionally).

Younger Millennials do not spend more than fifty Dollars for clothes.

According to Balance (2019), a publication of more youthful millennial spending

habits seems to reflect the generation's priorities: convenience, a focus on experience

rather than things, and a delayed start when it comes to homeownership and starting a

family. Van Raaij (2016) in his research pointed out that Millennials do not like to think

about old age, retirement, and pensions; it is still far away for them, and other concerns

such as career and family are more prominent. Also, young people tend to spend more

money on retail and dining. This is one of the reasons that knowledge about lifestyle after

retirement and additional retirement saving is considered necessary, especially for

Millennials. As a result, retirement saving is often quite low for this age group.

According to a CNBC survey (2016), over one year, Millennials are spending

$26,000 more, on average, than the previous generation (Generation Y) to cover things

like bills, food, entertainment, clothes, and travel each year. Of course, this average is

nationwide, and due to lower overall income levels, Florida Millennials must significantly

curtail their spending. Additionally, a Charles Schwab (2017) survey found that

Millennials spend more than Baby Boomers and Generation X on comforts, travel, and

conveniences like Uber, taxis, pricey coffee, and dining out. Almost 60% of Millennials

admit spending more than $4 on coffee, 79% will overspend on dining out at "hot"

restaurants, and 69% buy clothes they do not need.

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Millennials Debt

Another critical issue related to retirement preparation is debt, which has an

influence on retirement for many individuals, especially the millennial generation.

According to a Wells Fargo Bank 2017 survey, almost 35% of Millennials have student

debt, with a median amount of $20,000 in 2016, and 75% say that this debt is

unmanageable. Researcher Zelin (2017), in his studies, focused on the trends in debt

levels among individuals of age "18 and older." Her studies included 1000 Millennials.

She found that almost 63% have at least $10,000 in student loan debt, with over 50% of

those reporting debt of $30,000 or more. She pointed out that financial liabilities are a

vital but often ignored component of retirement income security for this age group.

Another survey, conducted by Pew Research Center (2018), also shows that

younger and older Millennials with a minimum of a bachelor's degree have an average of

$37,172 in college debt. Additionally, housing debt was one of the major components

(elements) for Millennials households with a head of household age between 18 and 35.

Although most Millennials are not homeowners, housing debt has "serious implications

for the future retirement security of these Millennials. Perhaps most significantly these

families are potentially at risk of losing what is typically their most important asset - their

home" (Schreur, 2014).

According to Butrica and Karamcheva (2014), since the 1980s, Americans'

indebtedness increased dramatically, and this trend has significant implications for

retirement security. This indebtedness can require individuals to keep working and delay

their retirement and claiming their Social Security benefits because these individuals have

to pay their financial obligations first. The researchers used data from the Health and

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Retirement Study, and they examined household debt or liquidity constraints that can

impact the labor supply and benefit claiming behavior of older individuals. Study results

showed that "having household debt, particularly in the form of outstanding mortgages, is

positively related to older adults' likelihood of delaying retirement and Social Security

benefit receipt" (Butrica & Karamcheva, 2014). Subsequent studies by Ghilarducci and

Moore (2015) revealed that for fifty percent of young workers, debt is the main reason

why they do not save for retirement. Because of debt, many employees plan to retire later

than previously expected, with almost 22% planning to delay their retirement due to debt

issues.

Student debt is a national concern, and this can potentially carry on throughout an

individual's adult life. Perkins, Johnston, and Lytle (2016) focused their research on debt

and developed classroom lesson plans to enhance students' understanding of the

consequences of debt, including retirement consequences. According to their studies,

"student feedback indicates that understanding of debt has a delayed effect on borrowing

behavior and underscores the importance of making difficult behavioral changes sooner

rather than later to lower student debt levels" (Perkins, Johnston & Lytle, 2016).

Another study was done by Doran, Kraha, Marks, Ameen, and El-Ghoroury (2016)

showed that 9,523 borrowers carrying private student loans were exposed to a median

private debt load between $25,000 and $35,000 per borrower. Almost 28% of the private

debt balances exceeded $50,000. In addition, 40% of the participants (borrowers) had

incomes under $25,000 and over 75% earned less than $50,000. Of course, many factors

can influence students' financial decisions, and it would be difficult to determine the true

impact on a future retirement decision.

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Social Security System Issues

The Social Security system was established to help Americans finance their

retirement. However, a report by the Urban Institute (2016) shows that Millennials would

be better off doing another kind of investment with that money. Social Security seems

less and less secure, and the economy has taken its toll on an aging population. The

retirement strategies that once seemed secure are now changing as workers are saying they

need to work longer than anticipated for an uncertain (SSA) benefit (Timmerman, 2011).

Social Security Benefit uncertainty creates one of the biggest challenges for retirement

planning. According to the Bureau of Labor Statistics, as of the end of 2012, almost 57

million Americans were receiving Social Security benefits in the form of retirement or

disability at an annual cost of $786 billion. The Congressional Budget Office (2014)

reports social security (old age) reserves will be fully depleted by 2031 and the disability

portion earlier than that. It is impossible to predict what will happen to the entire Social

Security system. Therefore future retirees should consider the impact of potential

reductions in payments in their retirement planning.

A simulation data done by the Urban Institute (2016) found that Millennials will earn a

paltry rate of return on their Social Security investments. For example, a Millennial born

in 1995 who started working at age 22, "making approximately $47,800 will receive

$569,000 in current dollars what an equivalent to a 22.1% increase over 43 years"

(National Review, 2017) is. And that's assuming that the Social Security benefits will not

fall, even though shortages are a real possibility (National Review, 2017). This upcoming

shortage of Social Security funds creates an issue.

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According to Ahmed, Barber and Odean (2015), Social Security faces "a funding

shortfall as the result of being set up as an unfunded pay-as-you-go system that delivered

about $14 trillion of net transfers (in 2014 present value dollars) to people born before

1937" (p. 4). If Social Security were privatized, social security taxes would need to be

levied to pay this liability.

Research by David (2016) showed that many retirees face significant future

income reduction. This reduced income could, for example, lessen one's feeling of

autonomy: e.g., less money could mean less choice about the activities one will engage in.

The need for competence could be challenging to fulfill when leaving one's professional

life and engaging in non-work activities. Finally, work contributes significantly to social

relationships. Hence, the need for meaningful human interaction could be challenging to

satisfy when one's social circle is reduced considerably. For retirees to function optimally,

develop, and grow, they will likely have to fulfill their basic psychological needs.

According to the Social Security Administration (2017), Social Security is expected to

replace about 40% of an individual's salary at its current payout rate, but that falls to 30%

if the benefits are cut. That means that they will need to make up approximately 40% of

their salaries from savings or investments.

Per the Social Security Administration's 2016 publication, in 2015, almost 60 million

Americans received $883 billion in Social Security benefits. Social Security is the primary

source of income for most of the elderly, and nearly nine out of ten individuals age 65 and

older receive Social Security benefits. Also, among elderly Social Security beneficiaries,

48% of married couples and 71% of unmarried persons receive 50% or more of their

income from Social Security.

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According to the Social Security Administration's (2015) study of elderly Social

Security beneficiaries, precisely 21% of married couples and, remarkably, 43% of

unmarried persons (often widows or widowers) rely on Social Security for 90% or more of

their income. Every decade the number of elderly Social Security beneficiaries is

growing. Poterba's (2014) research showed that "the U.S. population over the age of 65

was 8.1 percent in 1950, 12.4 percent in 2000, and is projected to reach 20.9 percent by

2050" (Poterba, 2014). Therefore, the aging of the U.S. population makes issues of

retirement security increasingly important.

Both younger and older Millennials do not expect the level of Social Security

benefits previous generations enjoyed, and they know they cannot rely on it as a primary

source of income in the future (Collins, 2018). Also, they believe that Social Security

erodes their opportunities to save money, leaving the millennial generation with less of a

safety net and forcing it to take out more debt to cover unexpected expenses. Also, at

some point, they may resent paying a substantial portion of their income to support current

retirees drawing a salary from a program they may never benefit from.

Table 1: Average Monthly Payments in 2018

December 2018 Beneficiary Data

Retired workers

62,906,000

$85 billion

$1,342 average monthly

Retired workers

43,721,000

$64 billion

$1,461 average monthly

Disabled workers

10,162,000

$11 billion

$1,096 average monthly

Disabled workers dependents

1,626,000

$0.6 billion

$1,233 average monthly

(Social Security Administration, 2019)

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According to Hill (2017), the United States Social Security system is experiencing

a deep crisis which should provide a crucial opportunity "to rethink the system as a whole

and redesign this system of politics for the challenges of the twenty-first century" (p.11).

The author proposes an expansion of Social Security benefits, which is based on the plan

of doubling the individual payout. This expansion would be built on tax-favored

employer-based pensions. The new Social Security system would allow significant

reductions in tax-favored private retirement savings programs with a substantial increase

in the public portion of the system. Hill believes the new system would be more

progressive, more efficient, and more stable. The future of Social Security is uncertain,

complex, and highly politicized.

Millennials Retirement Expectations

For almost 48% of workers in the United States, the most significant source of

their monthly retirement savings comes from 401(k) or 403(k) plans, and over 70% of

workers plan to withdraw their retirement savings at age 65 or later.

However, only 25% of current retirees in the United States receive as much as 25% of

their total monthly income from their 401(k) and similar types of savings and other

savings, investments, and retirement accounts (Brandon, 2012). Brandon states that "the

current retirees take a vast portion of their income from secure income sources such as

Social Security and legacy defined-benefit plans and they are secure in their concept of

receiving Social Security" (Brandon, 2012).

In 2013, subsequent studies on retirement expectations were done by BlackRock

and the Boston Research Group. They conducted studies on 1,002 workers with retirement

accounts. These studies showed almost 48% of workers plan to retire by the age of 64,

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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and another 17% believe that they will never retire due to their financial difficulties or

personal preferences. Also, only 19% of participants think that they will not be able to

work until age 64 or later due to job loss, health problems, or family circumstances. The

results of the same study showed that 11% of current workers plan to retire before age 60.

Almost 61% of workers believe that "their savings or investments will need to last for

between 20 and 29 years." Only a quarter of the employees surveyed think their retirement

savings and investments will "need to last for 30 or more years" (Pleven & Light, 2013).

However, many Millennials expect to work during their retirement because they do not

rely on Social Security benefits.

According to research by Biggs (2016), an average U.S. worker needs to retire

with savings of 8, 12, or even 20 times their final salary to meet their future financial

needs. Besides, savings and investment plans should be customized because different

people have different tolerances for risk. A Wells Fargo survey (2014) found that 50% of

working Millennials save for their retirement at a rate of less than 5% of their income.

Setting a retirement target date has become an essential strategy for building retirement

wealth for millennials (Schaus & Gross, 2010), as direct benefit (D.B.) pension plans are

no longer existent in most cases. Many retirees today are relying upon their direct

contribution (D.C.) strategies for the primary source of retirement wealth. They also are

using the retirement target date as the primary calculator for determining investment

requirements to meet desired retirement outcomes. Millennials will have to rely on

individual portfolios and personal savings to meet their financial security requirements

during retirement. Because the retirement scene is changing, choosing a target date has

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become a more complex task. The Millennial generation faces a complex and mostly

inefficient retirement-policy landscape.

Moreover, there is a profound inability of U.S. policymakers to develop an

efficient Social Security System. This is a significant obstacle to long-term planning.

Additionally, the policies that are in place support savings for mostly higher-income and

higher-wealth households (Schreur, 2016).

According to Schreur (2014), millennials think that Social Security will not be a

reliable source of income during retirement. Almost 80% of Millennial workers are

concerned that Social Security will "not be there for them in retirement" (Collinson,

2014,). The Pew Research Center's (2014) survey found that 51 percent of millennials

expect that they would not receive any benefits from the Social Security system. (Does

this match with prior stat?) However, this generation is very optimistic, and it hopes to

save for retirement. Millennials remain confident in their long-term financial security.

The Pew Research Center's (2014) survey shows that 85% of millennials say that "they

either already have or will have enough money to lead the kind of life they want" (Pew,

2014). The same survey found that 68% of millennial workers are confident that they will

fully retire with a comfortable lifestyle. Also, about six-in-ten of millennials expect to

work during their retirement in some capacity, and five out of ten millennials plan to

continue working full-time after retiring (Collinson, 2014).

Millennials Life Expectancy

As working longer becomes more of a requirement, some workers may need to

consider re-tooling their skills later in life to provide more options for working longer

(Timmerman, 2011). Recently, however, more and more people are retiring. Since 2011

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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almost 700 higher paid Baby Boomers are retiring per day, and they "have larger

retirement balances" due to a superannuation window of opportunity with the median male

retiring with something like $225,000" (Cooper, 2015).

While working longer may be an option for higher paid, higher educated workers,

it may not be an option for lower-paid workers. They will be relying primarily on Social

Security for retirement benefits (Munnell& Sass, 2009). Even so, jobs are less physically

demanding today than historically, making it more reasonable for workers to remain

employed longer into their retirement years. A strategy of working longer may become

one that is a requirement for many Millennials. In determining the length of work, life-

expectancy also needs to be taken into consideration as life-expectancy continues to grow

(Lynch, 2012; Pfau, 2012; Purcell, 2000; Yakoboski, 2011). Millennials could be the first

generation reaching the age of 90 in large numbers and who will spend about one-third of

their lives as "old people" (Carstensen, 2016).

Also, according to Pestieau and Ponthiere (2015), an increase in longevity places

increased pressure on underfunded pensions that may, in turn, have to reduce future

monthly outlays due to these increased unfunded liabilities. This negative effect depends

on the prevailing conditions: defined benefits or defined contributions, mandatory or

flexible retirement, average retirement age, etc. From a long-term welfare viewpoint, "the

ideal is a defined contribution scheme and a mandatory early retirement constraint" (p.

28).

Another analysis uses the Health and Retirement Study and an instrumental

"variables approach to examine how subjective life expectancy influences planned

retirement ages and expectations of working at older ages, and how individuals update

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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those expectations when they receive new information" (Khan, Rutledge, & Wu, 2014).

The results showed that there is a significant relationship between a subjective view of life

expectancy and retirement expectations, including optimism about living to ages 75 or 85.

This study showed that post-retirement behavior also changes with subjective life

expectancy, but the relationship is somewhat weaker. The authors found that increases

over time in personal life expectancy are associated with increases in the probability of

planning to work at ages 62 to 65. The results can help Millennials understand the

relationships between life expectancy and retirement age. Increasing knowledge about

rising life expectancy may increase the proportion of Millennials who decide to work

longer. The concept of "outliving your money" may be applicable and understandable for

Millennials, who already do not see retirement as the end of work.

Millennials Retirement and the "American Dream"

James Truslow (1931) was the first who described the term "American Dream."

The name was coined in his best-seller in 1931, "Epic of America." Truslow described the

"American Dream "as” dream of a land in which life should be better and richer and fuller

for everyone, with opportunity for each according to ability or achievement" (p. 404).

According to Chetty (2017), the "American Dream" is what you would consider a "perfect

life." It can be full of happiness, money, love, food, cars, whatever you desire, everyone

has a different opinion. One person's American Dream may be different from someone

else's; that is what makes us all individuals. My American Dream would include a good

job and lots of money, spare time for my family and me, and, most importantly,

healthiness. It seems that so often, the subject of economic standing and wealth is used

synonymously with the phrase "The American Dream."

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According to sociologist researcher Emily Rosenberg (2019), the government

should protect each person's opportunity to pursue their idea of happiness, which is an

essential of the American Dream. This protection extends to private enterprise, allowing a

free market economy. The purpose of an American Dream should also support a person's

right to retirement benefits.

Millennials have a new view of retirement and the American Dream, which

"involves retiring early, enjoying regular mini-retirements, incorporating more of what

they love earlier in life, paying off debt, traveling during retirement, and spending more

time with family," Richardson (2019). According to a Bankrate (2020) survey, Millennials

say the ideal age to retire is 61 or earlier.

According to Castello (2019), Millennials see the retirement "as a fluid and longer-

lasting life stage. And they don't see the benefit of deferring pleasure until they reach a

certain age" (p.1). Also, the Millennials view retirement not as a number but as a life

stage. According to Richardson (2019), Millennials want to have the ability to travel

during retirement. The Millennials Generation also expects to have more time for charity

work and donate more money to charities during their retirement.

Furthermore, Millennials imagine their retirement time in their own houses but not

necessarily "paid off" as part of achieving their American Dream, Financial Express

(2020). In retirement, "millennials envision switching from their career income to an

income that will supplement their desired lifestyle. They want to pursue passion projects,

explore hobbies, engage in activist opportunities, and monetize their skills" (Retirement

Market Insights, 2019).

Summary of Retirement Issues

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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Deciding when to retire may be one of the most critical decisions Millennials will

have to make during the lifetime. Although actual retirement usually occurs late in life, the

decision can significantly affect Millennials' well-being for many years. The majority of

research about the retirement decision has explored the impact of health

(Gustman&Steinmeier, 2014) and economic status (Gustman&Steinmeier, 2014) on

peoples' decisions to retire. Not surprisingly, research has indicated that individuals in

poor health or whose loved ones are suffering from adverse health conditions retire earlier

than those in better health (McGarry, 2004). Additionally, individuals who enjoy a higher

socioeconomic status tend to work longer than individuals with lower socioeconomic

status (Li, Hurd & Loughran, 2008).

Unfortunately, Millennials were born during a time of a complex and mostly

inefficient retirement-policy landscape. There is no consensus about how to finance future

Social Security benefits. Additionally, some government (tax and investment) polices not

support savings; therefore, many Millennials do not own a retirement savings account. As

previously mentioned, they also have enormous amounts of student debt. Individuals'

savings behavior influences the retirement decision, the number of debt, expenditures

before and during retirement, and the estimated social security retirement benefits.

Millennials will have to learn how to handle their retirement planning, future health costs,

and benefits that traditionally were covered by employers

Summary of Literature Review

The literature found and examined an array of publications in regards to

millennials' awareness of retirement issues, preparedness, and what their expectations are.

This broad literature review began with human needs necessitating the development of an

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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income capacity for future life stages. Just as squirrels save nuts for the winter, and bears

get fat as a survival strategy, modern society requires that Millennials prepare for

inevitable lower earnings without severely sacrificing their security, lifestyle, and

happiness as they proceed through their lifecycle.

There is a wealth of research in the areas of retirement planning, and awareness,

within the context of retirement opportunities, instruments, government programs and

incentives, and factors influencing retirement preparation. Indeed, the complexity of the

topic is far-reaching and of critical importance.Fortunately, available literature provides a

broad and solid foundation for the conduct of this study. It also supports the necessity for

additional research that can provide a more current and focused assessment of awareness

and preparedness of the Millennials for their eventual and future retirement. The literature

in this chapter also concentrated on the changing landscape of planning. The gradual

decline of fixed payment plans, the advent of supplementary plans such as IRA, 457(b),

401(k), and 403(b), and the challenges facing social security with higher retirement ages

and potential benefits reductions. Previous studies underscore the precarious circumstance

of many current SSA recipients and the grim future for the millennial generation.

The trends are clear. Prior generations in recent decades were generally better

prepared for retirement than the present, and future generations are, or perhaps can be.

Millennial generation future retirees need to pay more attention to retirement

preparedness, and they need to begin earlier. A "perfect storm" of demographics,

economic factors, longer life span, employment instability, and the rapid rate of change is

occurring and enveloping the unprepared in its wake.

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According to most of the studies, large numbers of pre-retirees are unaware of all

the considerations, have been or will be impacted by changes in employer retirement plans

and options, are confronted with inadequate planning, increased life expectancy, etc.

Demographics, life-span increases, financial opportunities, employer miscalculations,

government spending limitations, and increased shifting of responsibility for retirement

preparation onto Millennials rather than institutions have also contributed to a crisis that is

leading retirees into unsustainable or perhaps unfulfilling retirement years. For this critical

phase of life, millions of people are woefully unprepared and blissfully ignorant.

Financial literacy and retirement education and planning must be pressed into earlier age

groups if Millennials are to make informed and intelligent decisions in this area.

In the following chapters of this dissertation, the researcher will further explore the

issues mentioned in this chapter and offer recommendations for Millennials to prepare for

a financially adequate future retirement.

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Chapter 3

Methodology

The methodology is perhaps one of the most challenging and laborious parts of

research work. Essentially, the method provides a framework to understand the research

problem and basis for organization, analysis, and interpretation of findings. The

methodology must be carefully selected and appropriate for the study.

Qualitative Research Method with Narrative Design

Qualitative research using interviews has long been an essential research method.

Burnard (1994), Coughlan & Cronin (2009), and Schultze & Avital (2011) called the

interview the most direct and effective method, explaining this is "research-focused

interaction between researcher and participants" (Kazmer & Xie, 2008). An interview is

typically a face-to-face conversation between a researcher and a participant involving a

transfer of information to the interviewer (Creswell, 2012).

In the context of the qualitative paradigm, interviews conducted face-to-face is

often seen as one of the most effective ways to detect and perceive the interviewee's

perspective. Also, face-to-face interviews can help develop a thick (nuanced) description

of given social and economic factors influenced by cultural patterns and different

demographic backgrounds (Warren, 2002).

According to Kalekin-Fishaman (2002), interviews as a part of the research

method often have been written about extensively for several decades. It should be noted

that there is juxtaposition (association, comparison) between interviews as written about,

and interviews as performed in the course of research. The vast majority of writing about

interview research methods state that, interviews should be conducted face-to-face or

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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assumes that they will be done in this mode. The primary data source, by extension, is data

that would not otherwise exist if it were not for the research process and the data collected

via questionnaires and interviews. Interviews occur when researchers ask one or more

participants general, open-ended questions, and record their answers (Creswell, 2012).

Besides, interviews are particularly useful for uncovering the story behind a participant's

experiences and pursuing in-depth information around a topic. Interviews may be helpful

to follow-up with individual respondents after questionnaires, e.g., to further investigate

their responses (McNamara, 1999).

Therefore, during the meeting with participants, the researcher in this study used

interviews as the primary method. Interviews and interview schedules have many uses,

most notably to discover what the masses are thinking, and they are frequently used in

market research, political polls, evaluations, opinion surveys, customer service feedback,

and social science research (O'Leary, 2014). Interviews for this study were conducted at

Saint Thomas University in Miami, Florida. The researcher used interviews and

demographics questionnaire as instruments to collect the primary data. The researcher was

able to talk directly with each of 10 participants about factors shaping their retirement

awareness and preparedness during early adult life. Factors of meaning include socio-

economic factors, retirement confidence, retirement awareness, retirement planning, assets

allocation, expectations toward retirement, saving, expenditure control, debt, social

security system issues, retirement expectations, and life expectancy.

A set of structured semi-structured, open-ended questions was used in this research

to guide the entire interview process. This format involved pre-printed documents in

conducting the interview and developing responses that were organized for easy analysis

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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(Bell & Waters, 2014). Also, all discussion questions were informal, and all questions

were open-ended in hopes in anticipation of obtaining impartial answers, instead of

closed-ended questions that might force or lead participants to answer in a certain way.

Open questions give participants more options for responding. Creswell (2012)

recommends using only open-ended questions during interviews since they are primarily

qualitative. In this study, both types of questions (demographics and open questions) were

utilized during the interview process and follow-up questionnaire. The source of the

questions was the 2018 Retirement Confidence Survey, which is the longest-running

annual retirement study of its kind in the nation (Retirement Confidence Survey, 2018).

Narrative design is a term used very widely in everyday life, "as well as in literary

studies, cultural studies, management, psychoanalytic studies, history, fine art, socio-legal

studies, finance, philosophy, criminology, computer game studies, and film theory"

(Squire, Andrews, Davis, Esin, Harrison, Hyden&Hyden, 2014). In this study, the

researcher applied historical research and methods that can be considered as real-world

measures where real-life problems related to retirement awareness and preparedness were

investigated. Narrative research helps to subsume a group of approaches that heavily rely

on spoken or written words. These approaches focus on the lives of participants, as told by

their own story and experience. "Narrative research investigates the stories of what

narrative researchers call "lived experience." These may be firsthand experiences of

individuals, groups, organizations, or even governments" Roller & Lavrakas, 2015).

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Narrative Design for this Study

The design stage constitutes the step where the methodological procedure is

planned and prepared. The narrative design includes stories participants told about their

lived experiences, putting them into a narrative chronology (Creswell, 2009; McDonald,

2008). As mentioned above, the historical research may utilize primary data sources where

the researcher collects the data, for example, an interview (using the oral history

technique). The study also may use secondary data sources such as published biographies.

According to Merriam and Tisdell (2015), narrative research design can include:

1) Identification of a phenomenon to address

2) Selection of individual(s) who can provide an understanding of the phenomenon

3) Collection of the stories from the individuals/ study participants

4) The data reviewing of the story and re-telling it in a sequenced and organized way

5) Theme(s) identification which shed light on the phenomenon or issues that the

researcher was interested in.

Group Related Themes and Summaries

The narrative research design requires relating a participant's "developmental

sequences, milestones, and turning points" (Murray, 2003), obtaining a better

understanding of participants' lived experiences.In this study, the researcher asked

participants questions related to retirement awareness and preparedness. Consequently, the

researcher was able to explore how participants' life experiences, knowledge, and

expectations could lend interpretation to the factors influencing their retirement awareness

and preparation. The following factors are socio-economic factors, retirement confidence,

financial literacy, retirement planning, assets allocation, awareness retirement issues,

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preparedness and future expectations toward retirement, saving, expenditure control, debt,

social security system issues, retirement expectations, and future expectations.

Also, narrative research is shaped by the validation of the audience, and it

beneficial part of social science (Creswell & Creswell, 2017). However, narrative research

may not always stand alone for evidence and support for the conclusion of findings or

reports. "Depending on whether or not it is a part of a great presentation, or whether it is a

stand-alone piece of research, it has to be accepted on its own merits as individual

experience and the interpretation of thereof (Atlas, 2018). The question arises about the

accuracy of the story looked at objectively, even though it must be viewed in its socio-

cultural-economic context. The narrative gives one's view to be assessed on its merits.

Such validation is possible by corroboration from another narrative. According to Stride,

Fitzgerald & Allison (2017), some types of qualitative research analyses have a standard

set of procedures where narrative research is questionable in this regard. Therefore, the

text in narrative studies may be linguistically subjective. Sometimes it can be difficult to

quantitatively access objectively as it's subjective i.e., personally meaningful.

Role of the Researcher

The role of the researcher in qualitative research is to attempt to access the

thoughts and feelings of study participants and allow them to share their personal stories.

This is not an easy task because it involves asking people to talk about things that may be

very personal to them, especially money-related questions. In some cases, the experiences

being explored are fresh in the participant's mind, whereas, on other occasions reliving

past experiences may be difficult for participants. However, in data collection, the primary

responsibility of the researcher is to safeguard participants and their data. Therefore,

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mechanisms for such safeguarding must be clearly stated to participants (Creswell &

Creswell, 2017).

In this study, the role of the researcher is to apply an appropriate qualitative

research process using the narrative research method. The qualitative research process

includes designing, interviewing, transcribing, analyzing, verifying, and reporting (Fink,

2000). The researcher is the primary instrument for the data collection, but also the

researcher collects data using an interview schedule, which includes open-ended

questions. Additionally, the researcher developed the research design and steps where the

methodological procedure was planned and prepared.

In this study, all individuals were chosen according to criteria derived from the

research questions and objectives. Such criteria were based on demographic variables and

employment. After designing the research, the researcher conducted interviews to explore

how individuals describe and feel about factors influencing their retirement awareness and

preparedness during early adult life. A part of the researcher's role in this study was to

develop an appropriate interview guide using open-ended questions to encourage the

participants to give elaborated, complete answers (Fink, 2000).

Another part of the researcher's role was to make decisions about what to

transcribe from interviews. Transcription is practiced in multiple ways. they include: using

naturalism, in which every utterance is captured in as much detail as possible and de-

naturalism, in which idiosyncratic elements of speech (e.g., stutters, pauses, non-verbal

communication, and involuntary vocalizations) are removed" (Oliver, Serovich & Mason,

2006). According to Reismann (1993), transcription choices made by the researcher

supported different interpretations and ideological positions. Both transcription choices

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reflect both explicit and implicit assumptions. For the research was very important for the

researcher to focus on words and observe body language. Through interaction between the

researcher and each participant, the researcher gained insight into the intentionality and

relationship of meanings described by a participant and gained an understanding of how

meanings were unique to the one expressing them (Giorgi, 1997; Moustakas, 1990;

Nieswiadomy, 1993).

Therefore, it was essential for the researcher to set aside his own experiences to

enter into the participant's perspective (Moustakas, 1994). A transcription is a powerful act

of representation. This representation can affect how data are conceptualized. "During

crucial design and implementation, reflection periods at the points may provide a valuable

exercise.’’ This is especially in honoring both the research process and participant's voice

(Oliver, Serovich & Mason, 2006).

Using narrative research, the researcher expected to address an apparent literature

gap in understanding the retirement awareness and preparedness by Millennials through

narrative analysis and provide a better understanding of the factors influencing

Millennials' retirement awareness and preparation. Also, the researcher expected to

understand better college students' retirement planning awareness and preparedness about

pertinent literature findings and gain insight into relevant factors and how they influence

participants' retirement preparation and knowledge. This process was important to build a

foundation for questionnaire design, to evaluate college students qualitatively, and to

generalize findings.

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Human Subject Research Considerations

The researcher's ethical considerations included: (1) providing participants with

information on the nature, purpose, and scope of the study; (2) outlining the interview

process and maintaining a diary of occurrences during the study; (3) developing and

obtaining each participant's informed consent; (4) ensuring the confidentiality of

participant's involvement and data; (5) making clear the responsibilities of the researcher

and the participant; and (6) detailing how study results would be reported (Creswell, 2009;

Lacono et al., 2009; Moustakas, 1994).

Data Collection Procedures

The researcher began with the procedure for data collection by setting up the

boundaries of the research, selection of the participants, establishing a standard way of

recording information, and identifying ethical issues related to data collection (Creswell,

2017). The interview questions were built based on questions from an existing (and

standardized instrument), the 2018 questionnaire developed by Employee Benefits

Research Institute, which was flipped to open-ended questions to allow the participant to

share their perspective and stories.

The interviews were conducted during one month in2019. A purposeful sample of

Saint Thomas University students was selected based on variables such as academic

major, and employment status. All participants were enrolled in Business and Accounting

courses at Saint Thomas University. At the time of the interviews, all participants were

employed. Participants were invited in person for the face-to-face interview, and they also

were asked to complete a short demographic questionnaire in classroom settings

(Appendix A). All data collection occurred in person. Safeguards were put in place to

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ensure the confidentiality of participants' data, and name, unique, randomized numbers did

not identify participants.

Boundaries of the Study

"Researchers use definitions, delimitations, and limitations, and statements about

the significance to place boundaries on their study plans" (Creswell, 2010). In this study,

the researcher made conscious exclusionary and inclusionary decisions regarding the

participants, sample, theoretical perspective, and instrument. Exclusionary delimitations

regarding participants consisted of students who were: (a) enrolled in an undergraduate

program at Saint Thomas University, (b) lived in Miami-Dade County in the state of

Florida, (c) took one/some business and accounting course(s), (d) were presently or

previously employed, (e) were Millennials, (at the time of the study were between 21-30

years old). Students not meeting these criteria were excluded from the study.

Besides, exclusionary delimitations (instrumentality boundaries) consisted of: (a)

participants willing to complete an initial application to screen students, (b) who wanted to

volunteer and were chosen by researcher in the study, and (c) had some degree of interest

in this study.

Data gathered during the interview through the semi-structured interview was

developed based on a standardized questionnaire instrument used by the Employee

Benefits Research Institute in 2018, and it does not provide applicable statistical

significance. The methodology, however, was designed to provide practical relevance

regarding college students (Business Majors) and their retirement awareness and

preparation. Documentation included (a) all participants were asked questions during face-

to-face conducted interviews between researcher and participants, (d) all kinds of

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observations made by the researcher during the interviews, (c) demographics forms

completed by all students (participants) at the beginning of the study to give appropriate

reference to the interview process, and (d) other supporting documentation provided by

participants that were collected before or after interviews.

Participants and Sites for the Study

Participants were not selected by random sampling. Instead, they were student

volunteers between ages 21 and 30 who are studying at Saint Thomas University, and all

of them are enrolled in the undergraduate Business program. Participants represent two

cohorts: Younger Millennials (born between 1991 and 1997) and Older Millennials (born

between 1981 and 1990). Saint Thomas University was chosen because the researcher

had a precious opportunity for student access. All of the participants completed at least a

Personal Finance, Introduction to Business, and Financial Accounting course. Note all of

these courses included some retirement-related topics or chapters. A total of twenty five

individuals volunteered to be participants, with ten individuals being selected for actual

involvement in this research study. The final selection of each participant was based on

the researcher's judgment of a participant's availability and interest or experience in the

study's purpose. From this purposeful sampling of volunteer participants, stories of three

participants were selected by the researcher for in-depth narrative analysis. Interview sites

were completed at a Saint Thomas University location mutually agreed to by the

researcher and each student-participant.

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Data Collections Types

"It is important to remember that the construction of knowledge is only viable

when the data collection method allows the researcher to use a range of probes and other

techniques to achieve a depth of answer in terms of penetration, exploration, and

explanation" (Legard et al., 2003). The most common data collection included the

following forms of data: observations, interviews, documents, and audiovisual materials.

New and creative data collection methods include, for example living stories, digital

archives, and photo elicitations (Creswell, 2017).

In this research, before each interview and data collection began, each student-

participant was asked to complete three documents, including the Application for

Participation in Study, Demographic Information form, and Informed Consent Agreement

prepared by the researcher and approved by the university's Human Subjects Committee.

The Informed Consent Form was signed by student- participants before the entire study

began. The entire study was conducted in face-to-face interviews and discussions that

occurred during one month in 2019. The researcher chose a classroom as a place for each

interview to avoid the loud noises and ensure the interviewee was comfortable. To open

and guide the interview process, the researcher explained the purpose of the interview and

discussed a questionnaire with open-ended questions related to retirement factors. The

factors are socio-economic factors, retirement confidence, financial literacy, retirement

planning, assets allocation, awareness of retirement issues, retirement preparedness, future

expectations toward retirement, saving, expenditure control, debt, social security system

issues, retirement expectations, and life expectancy) with each student-participant.

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Also, the researcher addressed terms of confidentiality with a clear explanation

concerning who will get access to their answers and how their answers will be analyzed.

Also, the researcher stated that student participants ' comments would be used as quotes

for this study. The researcher also indicated the duration of the interview and asked each

participant if she/he had any questions before starting the interview.

It should be noted that certain kinds of research questions can best be answered or

supported by observing how participants act or how things look. Therefore, observations

were made by the researcher concerning meanings given to answers by each student-

participant. Tones, moods that accompanied the words and body language were observed

during all interviews, and they were beneficial to the researcher in interpreting the

meanings. The researcher explained the purpose of the observation to all participants. The

full-participant observation was applied during this study. Participants knew that the

researcher made observations. It should be noted that the presence of a researcher

(observer) could have an effect on the behavior of participants being observed and affect

the outcome of this study.

Observations allowed the researcher to record information as they occurred and to

explore topics that could be uncomfortable to participants. During the interview, each

student-participant was asked to use a scratch paper to document or write any additional

questions or thoughts they had about questions related to retirement or retirement

preparation or retirement factors. After the interview, all participants were allowed to send

an email to the researcher with any questions or additional thoughts related to the

retirement preparation study after the interview. According to Creswell (2014), written

thoughts are allowed to enable a researcher to obtain exact language in the own words of

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participants. This kind of documents (emails) with additional questions, answers,

concerns, or thoughts represent data to which participants have given special attention.

Data Recording Procedures

Interview data: Interview data were recorded using the Apple "Speech to Text"

application, which is easy to use, reliable, and very accurate. The application includes

voice-to-text transcriptions that can be quickly converted into emails or pasted into any

application using the clipboard. It also includes an automatic correction for grammar and

punctuation. The researcher took additional written notes during each interview session,

interview reviews prepared by the researcher after each interview session, and in email

communications with participants after interview sessions. Each participant had a separate

electronic copy of the interview kept by the researcher.

Creswell (2009) and the researchers applied knowledge of contexts, norm, and everyday

practices of participants (students) and choose interview questions that are understandable

and accessible to participants. According to Brinkmann and Kvale, the researcher

questions are usually formulated in a theoretical language, whereas the interview

questions should be expressed in the everyday language of the interviewees. Castillo-

Montoya (2016) identified a four-phase process called Interview Protocol Refinement

(IPR) which includes the following:

1. Ensuring interview questions align with research questions (phase one). This phase

focuses on "the alignment between interview questions and research questions. This

alignment can increase the utility of interview questions in the research process

(confirming their purpose) while ensuring their necessity for the study (eliminating

unnecessary ones)" (Castillo- Montoya, 2016).

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2. Constructing an inquiry-based conversation (phase two). This second phase focuses on

developing an inquiry-based conversation "through an interview protocol with a)

interview questions written differently from the research questions; b) an organization

following social rules of ordinary conversation; c) a variety of questions; d) a script

with likely follow-up and prompt questions" (Castillo- Montoya, 2016).

3. Receiving feedback on interview protocols (phase 3). Phase 3 is about receiving

feedback based on developed interview protocol. The main objective of phase 3 is to

gather feedback on the "interview protocol is to enhance its reliability—its

trustworthiness—as a research instrument. Feedback can provide the researcher with

information about how well participants understand the interview questions and

whether their understanding is close to what the researcher intends or expects (Patton,

2015; Castillo-Montoya, 2016).

4. Piloting the interview protocol (phase 4). In this phase, the researcher is ready to "pilot

the refined interview protocol with people who mirror the characteristics of the sample

to be interviewed for the actual study (Maxwell, 2013). In this last phase, the

researcher takes notes to improve and revise the interview protocol and prepare to

begin the study (Maxwell, 2013). However, this phase may be costly to conduct;

therefore, phase 3 becomes crucial to refining the interview protocol.

The interview notes included a heading with the date, place, and persons present, name

of the participant, and name of the researcher. Besides a set of study questions, the

interview had an ice-breaker question. The participants were asked open-ended questions.

The researcher asked about their personal experience related to the study subject and

explain in detail their thoughts.

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Observation data: Observation is a powerful research technique – one of the many

popular qualitative methods used in research. The information gleaned from observational

research helps researcher discover what participants think and experience, and how can fix

problems they face. During the interview, the researcher also included observation data in

the form of notes. The researcher studied the following when conducting observation:

body language, gestures, cues that lend meaning to words, and other people present.

Document Data: Documenting data is essential because they provide sufficient

descriptive information about data so the researcher can use it. Well documented data is

identifiable, understandable, and usable in the future. In this study researcher documented

data at each stage of the research process in the form of an electronic copy file for each

participant. Types of documents were described in detail within the "Types of data

collected" section.

Data Analysis Procedures

In this research, data analysis occurred throughout the entire research process, and

the analysis began with the very first interaction between the researcher and the

participants. During conducting each interview, the researcher was recording each

participant and made notes. Also, the researcher was giving interpretation, clarification,

and analysis of meanings for participants' experiences described orally. These

interpretations were also documented in the form of notes by the researcher. The

researcher followed the Template Analysis developed by King (2012):

The researcher conducted ten interviews and read (listen) and re-read (re-listened), entered

the date, and wrote his impressions, searching for meaning and determining which pieces

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of data have a study value. Also, the researcher selected a subset of the accounts, such as

notes and recordings.

The researcher collected preliminary analysis of the data and started to highlight

anything in the text that might contribute to his understanding. Also, the researcher

focused on the analysis of the answers to a question(s) and identified key issues.

The researcher categorized and organized the emerging themes into meaningful clusters

and begins to define how they relate to each other within and between these groupings.

The researcher began to develop a pattern (lateral relationships) that consists of the idea,

concepts, and interactions. A "code" was assigned to those pieces of data to organize, label

the data, and make it easier to retrieve. The researcher further held the data to provide a

framework that would structure, label, and define the data.

The researcher defined and developed an initial version of the coding template based on

the data. The subset selected captures a good cross-section of the issues and experiences

covered in the data as a whole. The researcher identified patterns and made connections,

looked for the relative importance of responses received and attempted to find

explanations from the data, and verified as necessary with study participants (Creswell &

Creswell, 2017).

The researcher applied the initial template to additional data and modified it as

appropriate. The researcher examined new data and material of potential relevance to the

millennial students' awareness of retirement issues their retirement preparedness and

future expectations. Rather than reorganizing the template after every new account was

examined, the researcher worked through several accounts with possible revisions and

modified the temple as required. Practical constraints of time and resources limited the

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number of iterations possible, but the analysis should not leave any data of clear relevance

to the study's research question encoded.

The researcher finalized the template and applied it to the full data set (Brooks & El,

2015).

The researcher began to interpret data and explain the findings. After themes,

patterns, connections, and relationships are identified, the researcher must attach meaning

and significance to the data (Center for Innovative Research and Education, 2019).

Template Analysis Appendix attached.

Strategies for Validating Findings

With an altered concept of validity, "validation" becomes "investigation,"

"continually checking," "questioning," And "theoretically interpreting the findings."

Validation then becomes built into the research process, with regular checks (Kvale,

1989). According to Creswell & Miller (2000), there are eight validation strategies

frequently used by qualitative researchers. These eight validation strategies include the

following:

1) Prolonged engagement and persistent observation in the field through building trust

with participants, learning the culture, and checking for misinformation that steams

from distortions introduced by the researcher.

2) Triangulation, where the researcher makes use of multiple and different sources to

provide evidence.

3) Peer review or debriefing, the researcher, provides an external of the research process.

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4) Negative case analysis, the researcher refines the working hypothesis as the inquiry

advances, or the researcher revises the initial hypothesis until all cases fit completing

this process late in data analysis and eliminating outliers and exceptions.

5) It is clarifying; in this clarification, the researcher comments on past experiences,

biases, prejudices, and orientations that have likely shaped the interpretation and

approach to study.

6) Member checking, the researcher solicits participants' views of the credibility of the

findings and interpretations.

7) A detailed description allows readers to make decisions regarding transferability. A

detailed description enables the researcher to transfer information to other settings and

to determine whether the findings can be transferred.

8) External audits allow an external consultant to examine both the process and product

of the account, assessing their accuracy.

The validation mentioned above strategies were incorporated into research (except

number 8), to assure the trustworthiness, authenticity, and credibility of the findings. In

the study, the researcher engaged in observation in the field through building trust with

students (participants), and, importantly, members were invited to check recorded data and

provide feedback to the researcher.

Ethical Issues

Considering the nature of qualitative studies, the interaction between researchers

and participants can be ethically challenging for the former, as they are personally

involved in different stages of the study. Therefore, the formulation of specific ethical

guidelines in this was essential. Ethics played a significant role during all phases of this

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research. Creswell (2009), states that in a narrative approach, the ethical element has a

greater import because of the necessity of trust in the relationship between the researcher

and participants.

In this research, it was necessary to build strong trust. Because all questions were

related to sensitive financial information, retirement confidence, financial literacy,

retirement planning, assets allocation, retirement expectations and saving behavior,

expenditure control, debt, social security system issues, retirement expectations, and life

expectancy. Most of this information is very confidential. However, during this research,

the researcher paid considerable attention to developing a strong trust between him and the

subjects throughout the study. Creswell (2009) identified areas of ethical concern for the

study process, and the research incorporated those concerns into the design to ensure the

integrity of the study.

Also, the researcher needed to respect all research sites so that they were left

undisturbed after a research study. This provision requires that inquirers, especially in

qualitative studies involving prolonged observation or interviewing at a location, be aware

of their impact, and minimize their disruption of the physical setting. The researcher was

also careful that the research process did not marginalize or disempower participants

(students).

The research problem in this study lay in determining what factors including

awareness of retirement issues, retirement preparedness and future expectations, socio-

economic factors, retirement confidence, financial literacy, retirement planning, assets

allocation, saving, expenditure control, debt, social security system issues, retirement

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expectations, and life expectancy influence millennials' retirement awareness and

preparation, all information that requires ethical (and confidential) treatment.

There was a clear understanding between the researcher and participants on central intents

and questions for the study. The purpose of this study was clearly stated in the interview

schedule used for opening and guiding the research, the interviews were related to that

purpose, as understood relevant factors and how they influenced participants' retirement

preparation and knowledge.

The researcher provided participants with a hardcopy of the Informed Consent

form. This Informed Consent was approved by the university's Human Subjects

Committee and signed by each participant before any data collection began. As

recommended by Creswell (2009), the form included identification of the researcher, a

description of how participants were selected, a description of the study's purpose, the

location of interview sites, an explanation of expected involvement by each participant, a

guarantee for identity source confidentiality relating to any data used in the study (unless

the participant agrees in writing to be correctly identified), assurances that a participant

could withdraw at any time, and a listing of contact information for the researcher. The

consent stated that the researcher owned all data that was developed or that were

submitted by participants during the study.

It should be noted that during the interview and the entire process of collecting

data, all participants were not exposed to any kind of risk. Participants knew that they

were actively participating in a research study, and the researcher explained the purpose of

the study. The entire process of collecting data was free from all types of environmental

distractions or hazards, and the researcher did not use any unethical methods to gather the

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data from the participants. The researcher took the confidentiality of all participants

seriously and understands that identifiable information about individuals collected during

the process of research will not be disclosed without the participant's permission. The

ethical duty of confidentiality includes obligations to protect information from

unauthorized access, use, disclosure, modification, loss, or theft.

Therefore, the researcher faithfully fulfilled his ethical duty of confidentiality.

During and after research the researcher protected participants' right to privacy. He

maintained respect for their autonomy, and for their right to self-determination. Also,

security measures were taken during and after the interview to protect information.

Technical safeguards were used, including computer passwords, firewalls, and anti-virus

software protection from unauthorized access, loss, or modification.

During this study, the researcher carefully avoided biased language and characterization of

participants' fundamental activities or decisions. The entire research was based on stories

described by each participant. In interpreting the meanings of those stories, the researcher

was sensitive to how the study process and results could affect participants and included

participants in a feedback loop to deal with this issue. The researcher exercised caution,

so biases would not occur in the writing of study results related to gender, sexual

orientation, ethnicity, disability, or age.

In conclusion, this chapter fully describes the rationale for and all aspects of the

methodology, including data collection process and procedures, participant protections

and safeguards, and the rigorous application of current research techniques and protocols.

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Chapter 4

Results

This chapter summarizes the findings from the research into Millennial College

Students' awareness of retirement issues, retirement preparation, and retirement

expectations. In total, twelve participants (ages 21-27) were asked to participate in this

study. All participants were South Florida college students at local institutions of higher

learning. To increase the reliability and validity of the study findings, a qualitative method

using a narrative design was selected. The method required the researcher to conduct in-

depth interviews, read documents, and identify themes related to retirement awareness and

preparedness.

The narrative approach helped to develop a sequence of factors (events) to form a

cohesive story. It permitted an interpretation of meanings that influenced participants'

factors shaping their retirement awareness and preparedness during early adult life.

Factors of purpose included socio-economic factors, retirement confidence, financial

literacy, retirement planning, assets allocation, knowledge, and preparation, saving

behavior, expenditure control, debt, social security system issues, retirement expectations,

life expectancy, and other factors. The results of the research are explained fully in

appropriate detail along with their implications for young adults and whatever conclusions

and recommendations for further study that emanated from the study.

Each of the twelve participants provided a description of their own experiences

about retirement awareness, preparedness, and future retirement expectations. They also

indicated the factors that may influence their retirement awareness and preparation and

explained possible barriers faced before and during retirement. The text was based on

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face-to-face interviews with students (participants), written responses to reflective

questions, observations, and follow-up interviews to check accuracy and consistency. This

chapter begins with an overview of the participants, which includes demographic

information as well as a background and overview of their experiences, awareness,

preparedness, and future retirement expectations. Following the participants' summary, the

findings are presented and summarized using a thematic process.

Overview of Participants

In this study, the researcher used a purposeful sampling procedure and selected 12

students/participants. These students were chosen through professional contacts at Saint

Thomas University. Each of the participants had a desire to participate in this study about

retirement issues, awareness, preparation, and future retirement expectations. All

participants were Saint Thomas University students, and all of them lived in Miami- Dade

County. Four of the twelve majored in Business Administration, two with a minor in

Cyber Security Management, another four in Finance, and two other sports

Administration. At the beginning of the study, the researcher gathered background

information and their fundamental knowledge of retirement awareness. The focus of these

interviews was on further describing awareness, retirement preparedness, and retirement

expectations. In-between interviews, participants were encouraged to send journal entries

through short What Sapp messages, and update the researcher on changes to any

information given during the interview.

As participants became more comfortable with the researcher, there were various

short messages exchanged regarding their thoughts and stories about retirement. They

were also asked about the research after the class. All interviews took place over four days

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from December 12 to December 17, 2019. Also, they shared random thoughts on

retirement, and they asked the researcher about some retirement options. The

technological communication between the researcher and participant was consistent with

communication methods typically used by the millennial generation.

Younger Millennials (born between 1991 and 1997)

Ana. Ana is a 24-year-old female who majors in Business Administration with a

specialization in Cyber Security Management. Ana lives in Miami, and she was raised in a

typical home with Cuban culture and traditions. When the student was growing up, her

family included only her mom. When Ana described her family history, she said, "I was

born in Miami, Florida, but my family is from Cuba, and my mother's side is half Italian

as well. I have lived in Miami my whole life, but I have traveled to many different states

and countries, including Cuba, at least ten times" (Ana Personal communication,

December 12, 2019). The student is working full time, and she is a full-time student at

Saint Thomas University in Miami Gardens. Ana is planning to continue studying and

working at the same time. Ana described her job history as follows: "The first job I was

hired in was in a friend's store called Bella Quinces and Photography to work as a sales

representative. I started working there when I was 16 for about two years" (Ana, personal

communication, December 12, 2019).

Ana has been working in Miami Beach for a Medical Group as an emergency

after-hours operator for about three months. The job requires that she works after the day

shift ends until 11:00 PM answering calls and working alongside an on-call doctor, "The

job is convenient for the fact [sic] that it allows me to study during the day and then work

at night to pay bills" (personal communication, December 12, 2019). Academically, Anna

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is a high performer and has a high GPA of 3.6. Ana admits that she tries very hard

academically and recognizes that as a sharp point.

Regarding a general question about retirement and her experience, she said, "I am

not fully aware of retirement issues because I have not looked into plans or anything about

retirement in reality [sic]. Once I graduate from my bachelor's degree [sic] and get a full-

time job, I want to look into retirement plans" (Ana, personal communication, December

12, 2019). After graduation and getting a better job, she is planning to get to "start to

prepare for retirement, but my current job takes out money for social security and

Medicare" (Ana, personal communication, December 12, 2019). From the interview and

researcher notes, it was evident that her mom and grandparents are critical to her, and they

started to talk to her about saving money for the future. "I have started a savings account

where I take money out of every paycheck. Once I reach a certain amount, I plan to invest

in a company of a family friend where my parents have also invested money into grow

[sic]" (Ana, personal communication, December 12, 2019). Ana is not sure about her

retirement expectations: "I'm not sure what my expectation for retirement is, but I do

know I want to be comfortable" (Ana, December 12, 2019, Personal Interview). Ana

expects to have enough money during retirement so that she will be able to cover all her

expenses during retirement.

Levitt. The student is a 23-year-old male, and he was born in Miami Jackson

Memorial Hospital. Both of his parents are immigrants from Haiti, and both received their

education there. He is currently enrolled at St. Thomas University, pursuing a bachelor's

degree in business administration with a minor in Cybersecurity management. He is also

involved in school and athletics and says his parents do not bother him much to attend

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university or keep his GPA high. Levitt is employed at Publix Supermarkets, where he

works 25-30 hours per week. Levitt has financial aid and some student loans. "I think, but

I am not sure I have like $12,000 [sic] in student loans that I have to start paying after my

graduation," he said (personal communication, December 12, 2019).

Regarding retirement experience, he said, "Yes, I do prepare for retirement. I have

a 401k retirement plan with Publix. I know Publix hires an outside company that invests in

stocks. They call this an employer-sponsored retirement plan. And itmakes tax-deferred

contributions from my salary, from each of my paychecks" (personal communication,

December 12, 2019). Levitt also has some future expectations that during that retirement;

for example, he wants to live without any financial stress. "My future expectations about

retirement are [sic] to live comfortably and not worry about the stress and have everything

paid off, my home and debt" (Levitt, personal communication, December 12, 2019).

Stephanie. Stephanie is a very active 23-year-old female, born and raised in Miami,

Florida. She was raised in a Catholic home with her mother, older sister, her aunt, and her

older cousins. Stephanie is known to be the baby in the house. Almost every school her

family attended, she did too. Being raised in a Catholic household, each school she has

visited has been a catholic school. From elementary school at St. Mary's, then to

Archbishop Curley for high school and finally St. Thomas University for college where

she is now finishing off her bachelor's degree. She is known as a very active person. She

also does cheerleading and work-study for Career Services, where she's been working

since her freshman year.

Although her major is Finance and her goal is to become a remote financial

planner, her employment at Career Services gives her some experience in a slight financial

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planning job. In the future, her role will be to telecommute to advice clients about their

investments. "I don't mind," she said. "It gives me some of the experience [sic] if I ever

get to work in an office environment" (Stephanie, personal communication, December 12,

2019). From working with Career Services, she found an internship with a financial

institution called ERP Finance. When she anticipated her future, she got so excited and

exclaimed: "I love to help people and invest big money" (Stephanie, personal

communication, December 12, 2019). Once Stephanie graduates, she plans to move to

California with her elder sister and cousin, hoping to get hired by a big financial

institution. While working for them, Stephanie hopes she will make enough money to put

towards her future business and also start her retirement plan. She does not want to be like

her mom and has a late start on it. Learning some of the issues through the news and

sometimes in school, she knows to start earlier is better. Although she doesn't know much

about retirement plans, she does know that in jobs, she must have a retirement plan. Also,

student three understands that it all depends on how much the company/job is willing to

allocate to retirement benefits. "So, the longer I will work. Hopefully, the more benefits I

will get with the plan. That's why some people have savings too, just in case they don't get

enough benefits with their plan" (Stephanie, personal communication, December 12,

2019). Stephanie hopes that whatever job she gets after she graduates can give her a good

retirement plan and some basic knowledge at the same time.

Lola. Lola is a 22-year old female, and she was born and raised in Orlando,

Florida. Her family emigrated from Jamaica many years ago. She finished up high school

at Olympia High School . Both of her parents live together, and her parents' names

are Bryan and Rosemarie. Lola also has a little brother by the name of Nathan. She said,

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"The majority of my mother's side of the family lives in Jamaica, and the majority of my

father's side of the family reside in Florida" (Lola, personal communication, December 13,

2019). She is currently enrolled in a Business Administration program as Finance major at

St. Thomas University. She also works at the university library, as well as her father's

construction company in Miami. Regarding retirement, she said, "I am versed with the

issues surrounding retirement and how bad it will get when I reach retirement age" (Lola,

personal communication, December 13, 2019). Lola has some student debt, about

$10,000.

In some courses at Saint Thomas, she learned that Social Security goes through so

many financial issues, so she said, “I may not get any financial support from the

government." She said, "I have started to take measurements to ensure that I will be

financially stable when retirement rolls around. I have opened a savings account that the

majority of my pay goes to, and I only use that account in emergencies" (Lola, personal

communication, December 13, 2019). She continued saying, "I do not have too much

knowledge about other private programs, but I heard about 401k's, but I am not sure what

they are" (Lola, personal communication, December 13, 2019). She also has some

retirement expectations; she said, "My future expectations about retirement are

straightforward, but I hope I find them fulfilling. Other than being financially stable and

paying all my debt, another expectation would be traveling. I hope my kids do not have to

support me financially" (Lola, personal communication, December 13, 2019). Also, she

said, "I believe when I get to the age of retirement, I would have a lot of free time, more

than I did growing up so I would be able to see the world" (Lola, personal communication,

December 13, 2019).

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Roberto. Roberto is a 24-year-old male, and he is an only child. His family moved

to Miami from Venezuela. He was born in the United States. He says, "I have wonderful

parents, and they always take care of me. They are my best friends" (Roberto, personal

communication, December 13, 2019). He is majoring in Finance at Saint Thomas

University, and he is planning to obtain his Master's Degree in Business Administration.

He also thinks about getting a Ph.D. in the future. He currently works for Saint Thomas

University. He said, "I work as a graduate assistant at St. Thomas University, so all my

tuition is paid by the university. Also, I am earning some money" (Roberto, personal

communication, December 13, 2019). Also, Roberto helps students to find housing off-

campus, and this is his side business. "Sometimes, I can make up to $1,500 extra"

(Roberto, personal communication, December 13, 2019). He continued to say, "I am fully

aware of retirement issues, and what can happen if you do not plan for retirement and start

saving up. I am currently preparing for retirement by investing in the stock market and a

personal savings account" (Roberto, personal communication, December 13, 2019). He

wants to expand his business in the future, but he also saves money for retirement. "I am

putting away money from my paycheck and business every month towards retirement"

(Roberto, personal communication, December 13, 2019). Roberto has clear future

expectations about retirement. He wants to own a big house. He also wants to have enough

money in the bank so that he can comfortably retire at the age of 55. He is an only child,

so he will also inherit some assets from his parents.

Luna. Luna is a 22-year-old female who grew up in Miami, who lived in Brazil for

five years and then one year in Madrid, Spain. She is currently living in Weston, Florida,

with her parents, while her older brother is living in São Paulo, Brazil. She is currently

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studying as a Business Administration major at St. Thomas University, Miami, Florida. "I

am planning to do my Master's Degree in Tourism and Hospitality," she said. She has

some experience working in a travel agency in São Paulo, named Teresa Perez Tours,

which is a high-end travel agency focused on honeymoons, but they also organize family

trips. In 2019, she started doing her internship at a Hotel in Hollywood, Florida, called

Casa Pellegrino Boutique Hotel as a front desk agent. She is aware of some of the

retirement issues, such as having to pay for proper health care, having to save enough

money, maintaining a good income, and paying attention to debt. Some of those issues

entail more "fear" than others, and her biggest fears are about having to pay for health

care, which is very expensive in Florida, and about saving her money wisely. "The cost of

healthcare is so high in the United States; this scares me very much. I hope the

government will implement the universal healthcare system" (Luna, personal

communication, December 13, 2019).

Since she is still in her 20's, she doesn't have to be so prepared for her retirement

yet. There are lots of years ahead of her again, but she believes that in 2-5 years, she will

start to get ready. Luna has a few future expectations about her retirement: The first point

is that she believes that when she is retired, she will have a wealthy life and family around

her. That will help her in case she needs any kind of help. Another point about her

expectations is that she thinks that "from 2019 until she retires that there will be increased

benefits in retirement and that the amount that she will receive could be more than what it

is for 2019" (Luna, personal communication, December 13, 2019).

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Older Millennials (born between 1981 and 1990)

Bruna. Bruna is a 30-year-old female and a student at St. Thomas University. Her

major is Business Administration (undergraduate level). The student's second major in

Marketing. She lives in Miami, she said, "with my mother, fiancé, my sister, my niece, my

younger brother and I have a Frenchie and German Shepherd" (Bruna, personal

communication, December 16, 2019). Bruna's mother was born in Cuba and came to the

United States when she was seven years old. "My dad was born in New York and lived

there before he came to Florida; his parents were born in Cuba," she said. When she was

15 years old, her father passed away. She described, "This changed my family, including

myself" (Bruna, personal communication, December 16, 2019).

This year in April, it will make a year that she has been employed at Publix

supermarket. She is a customer associate, and she said that this position is very demanding

compared to just being a cashier. "Every day at my job, I deal with thousands of dollars

and sending them to different countries through Western Union. Besides transferring

money, I also deal with returns, check cashing, selling lottery [tickets], selling tobacco

products, money orders, and everyday purchases" (Bruna, personal communication,

December 16, 2019). She works an average of 25 hours per week, and this work is very

stressful for her because she must balance work and school. She added, "It is not just

school and work that students have to deal with, but also with taking care of yourself,

which I seem to be neglecting due to my hectic school and work schedules" (Bruna,

personal communication, December 16, 2019). She continued saying, "I am aware that

there are people that get so caught up in their issues and forget to save money for them for

the future, and that is why some people continue to work at such an old age" (Bruna,

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personal communication, December 16, 2019). This student's mother does not make too

much money, and all the extra money comes from her grandfather. She said he "was a

very hard worker and owned gas stations in California, and here in Miami, so he has a

good amount of money to rest on" (Bruna, personal communication, December 16, 2019).

Her grandfather purchased everything she owns, and she continued saying "My

grandfather has always had money; it was never a necessity for me to have to scrape and

save every penny because I could depend on him if I needed money" (Bruna, personal

communication, December 16, 2019). At the end of the introduction, she began talking

about her experience with retirement preparedness. She said, "I have not started to prepare

for retirement simply because I am not good at saving money and because I have not done

it or seen enough research to do so properly" (Bruna, personal communication, December

16, 2019). Also, she mentioned about retirement expectations: "Before retirement,

hopefully, I have a career that I make good money to be able to put away money for

retirement and to have a 401K" (Bruna, personal communication, December 16, 2019).

Eva. Eva is a 30-year old female, and she grew up mostly in Miami. Her mother's

name is Nakisha, and her father's name is Tito. Now she has a stepdad that's been around

almost her whole life as well, and his name is David. Eva also has one younger brother,

and his name is David. When she was a little girl, her family moved from Lawton,

Oklahoma. Her parents were in the U.S. military, and she lived in many places such as

Germany, Oklahoma, Washington, Louisiana, and Missouri. This is her second year at

Saint Thomas University, and her major is Business Administration. Currently, she works

for a company named "Wag" as an independent contractor. "Wag created a dog walking

app. It can be compared to Uber for dogs," she said. She changed the topic and started

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talking about retirement, "I know a little about retirement but not a lot. I know about the

401k benefits that some jobs provide for retirement. I've seen videos on YouTube by Dave

Ramsey that talk about how to save for retirement and get out of debt" (Eva, personal

communication, December 16, 2019). She continued to say, "I don't prepare for retirement

currently, but I do plan on getting that situated soon. I know the sooner I start the better

chance I have at getting enough to last my family and me for retirement" (Eva, personal

communication, December 16, 2019). Eva has some future retirement expectations; she

expects to have enough money to invest so that she can live comfortably during

retirement. "I don't know a specific number as to how much is enough, so I need my

money to continue to grow," she said.

Pablo. Pablo is a 32-year-old male and enjoys playing baseball. He said, "I am the

middle child of three children born in Tampa, FL, I moved to Miami when I was two years

old and have lived here ever since" (personal communication, December 17, 2019). He is

currently enrolled in Sports Administration (graduate program) at Saint Thomas

University and works at Turnberry South Tower in Aventura as the pool manager. Pablo

has an outstanding scholarship at the university, but he also has some student loans of

about $5,000.

Regarding his experience with retirement awareness and preparation, he said, "I

am aware of many retirement issues like the fact that Social Security might not be

available when I retire. There is also the issue that a lot of retirees do not make enough

money to maintain themselves" (Pablo, personal communication, December 17, 2019). He

continued, "this is why there are so many elderly people working part-time at

supermarkets to be able to make ends meet due to their social security checks not being

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enough" (Pablo, personal communication, December 17, 2019). He continued to say,

"Now I am not preparing for retirement. It's just not on my mind right now. I feel like I am

still young enough to not worry about that" (Pablo, personal communication, December

17, 2019). Pablo has many future retirement expectations; he wants to have enough

money, so he said, "During the retirement, I just don't have to worry about working

anymore and be able to relax at my house; I hope to do this with my Social Security check

and the 401k plan" (personal communication, December 17, 2019). He plans to start

saving money soon. He also wants to learn more about retirement programs. As of today,

his employer deducts some money for Social Security Tax from each paycheck.

"Retirement is the point of your life that you can finally slow down and enjoy your years

left on earth, and that is one of my expectations" (Pablo, personal communication,

December 17, 2019), he said.

Edie. Edie is a male, and he is currently enrolled in a graduate program at St.

Thomas University and majoring in Sports Administration. He is 30 years old. His family

is from Haiti but moved to the United States. As he described, "I was the first of my

family to be born in the United States. I currently work for the City of North Miami Parks

and Recreation, where I coach youth sports and sometimes manage parks" (Edie,

December 17, 2019, Personal Interview). Edie was a student-athlete at Saint Thomas

University. During his undergraduate year at the university, he used to have a job as a

work/study student in the school's athletic department. "I don't know a lot about the

current retirement issues; however I do know that a lot of people, and sometimes they say

that they are worried that the government will not have enough money for Social Security

in the future" (Edie, December 17, 2019, Personal Interview). He continued, "At my age,

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I don't think about retirement because I'm still young and do not have a fixed job yet to

start planning with" (Edie, personal communication, December 17, 2019). He believes that

he still has a lot of time before retirement, and he hopes to save enough money for the rest

of his life. Most of the people he has seen retire are in their 60's, and a few cases, he said,

"I have seen wealthy people retire in their 50's. I think the only reason some people in the

United States retire so late is that sometimes they are in so much debt, so they have to

work longer" (Edie, personal communication, December 17, 2019). "Hopefully," he said,

"I don't end up like that in the long run, and I get to be financially stable after I graduate

college, and I will start saving for my retirement" (Edie, personal communication,

December 17, 2019).

Ricardo. Ricardo is a 32-year-old male who grew up in Miami. His mother is from

Cuba, and his father was born in Columbia. This student has one younger sister, and her

name is Elsa. This is his first semester in the graduate program at Saint Thomas University

and his major in Finance. Currently, he works for a CPA company.

Regarding retirement, Ricardo said, "I know a little bit about retirement because I work

for a CPA company. I know that I have a 401k program, and my employer sponsors it. He

continued to say, "I don't prepare for retirement differently, but I do plan on getting

investments soon. I know I should think about my retirement, but I am still too young, and

I have enough time to prepare for it" (Ricardo, personal communication, December 17,

2019). Ricardo has some future retirement expectations; he expects to have enough money

so that he can travel around the World. "I make like $55,000 per year, and this is not

enough to save for retirement, but I hope after my graduation I can make like $80,000 so

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that I can start saving more money and make some financial investments" (Ricardo,

personal communication, December 17, 2019).

Sonia. Sonia is a 33-year-old female who grew up in Miami, and she is currently

living in Fort Lauderdale, Florida, with her parents. She is currently pursuing a Master's

Degree in Business Administration in Finance at St. Thomas University, Miami, Florida.

"I am planning to get a better job after my master's degree," she said. She has some

experience working at Bank of America. She is aware of some of the retirement problems,

such as more expenses for health care, specialized care, housing, and travel. "I am still in

my 30's, and I do not have to prepare for retirement yet; I want a better job so that I can

make more money. My bank does not pay much, I make less than $50,000 per year, and I

can't save any money because of my student loans" (Sonia, personal communication,

December 17, 2019).

Regarding her experience in retirement planning and expectations, this student has

many future expectations about her retirement. She wants to be debt-free, has a decent

house, and travel. "I would like to have my own business so that I can make more money

and have future investments" (Sonia, personal communication, December 17, 2019).

Overview of Themes

The study chronicled the lives and retirement-related comments and reactions of

12 participants who were Millennial Students; six represent a younger group of

Millennials, and six are from an older cohort of Millennials. All the participants are

currently enrolled in Business Administration, Finance, and Sport Management programs

at Saint Thomas University (undergraduate and graduate studies) in 2019. All the

participants in this study were probed about their awareness of retirement issues, their

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retirement preparedness, and future retirement expectations. The emphasis of this study

was to understand the factors influencing millennials' retirement awareness and

preparation, and their future retirement expectations. Furthermore, the purpose of this

study was to understand human experiences through their stories that help to better

understand the social phenomena related to retirement awareness issues, planning, and

future retirement expectations.

Table 2: Superordinate and Subordinates Themes

Superordinate Themes

Subordinate Themes

Theme One: Factors linked to awareness of

retirement and retirement issues.

1.1 Participants’ retirement knowledge.

1.2 Level of participants’ retirement

confidence.

1.2 Social Security issues knowledge.

Theme Two: Factors linked to retirement

preparation.

2.1 Participants assets allocation and retirement

investments.

2.2 Retirement savings.

2.3 Expenditure control.

2.4 Student debt

Theme Three: Factors linked to future

retirement expectations.

3.1 Health expectations.

3.2 Financial expectations.

3.3 Leisure expectations.

Also, this study could provide a "benchmark" of college students' retirement planning

awareness and preparedness and expectations and then compare these results with future

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findings. Through a careful narrative analysis and an evaluation of the hermeneutical and

research elements of the interview transcriptions, three superordinate themes emerged:

1) Factors linked to awareness of retirement issues,

2) Factors linked to retirement preparation,

3) Factors linked to future retirement expectations.

Table 2 provides an overview of the Superordinate themes and Subordinate themes for this

study

Theme One: Factors Linked to Awareness of Retirement and Retirement Issues

The study shows that all the participants are aware of the importance of retirement

and understand some of the current retirement issues. Relevant comments included: "I

know a little about retirement but not a lot." "I know about the 401k benefits that some

jobs provide for retirement," "I've seen videos on YouTube by Dave Ramsey that talk

about how to save for retirement and get out of debt." (Bruna, December 16, 2019,

Personal Interview). However, during their conversations about retirement, they show few

expectations. Many of their responses emphasized their current situation, and they do not

typically seek additional retirement information. They do not take any other steps to

become more aware of retirement issues.

1.1 Participants' Retirement Knowledge

Both younger and older Millennials responded similarly: "At my age, I don't think

about retirement because I'm still young and do not have a fixed job yet to start planning

with" (Ana, personal communication, December 12, 2019). Student One represents

younger Millennials, and she wants to imagine "a happy balance between retirement and

good living" (Ana, personal communication, December 12, 2019). She believes an average

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day during retirement as one during which she can play with her grandchildren, i.e., "when

I retire would be doing things at home with my grandchildren. I haven't put much thought

into it, but that's the "American Dream" (Ana, personal communication, December 12,

2019).

Ana has discussed the retirement subject with her parents; however, she says, "I

never discussed retirement with other people because it's not a common topic and no one

ever talks about it" (Ana, personal communication, December 12, 2019). She will plan her

retirement when she has a real career. She commented, "I think this will be the best time

because I will have a higher income, and I could save more money and invest them" (Ana,

personal communication, December 12, 2019). She also did not take steps toward

retirement savings except gathering some ideas. Concerning her next planning steps, she

responded, "My next step will probably be relationships and financial planning because I

want to become more independent and eventually have my own family. I want to have a

job so that I am financially stable for anything I want to do" (Ana, personal

communication, December 12, 2019).

Regarding the first question about retirement, many participants responded

similarly. "Retirement is very harsh, and you have to work very hard" (Levitt, personal

communication, December 12, 2019). Lola also represents younger Millennials, and she

works as an assistant to the library director. She has already had four jobs by the age of

24, and she said, "My first thought I had regarding retirement was what I would do each

day. One of the first things I thought of was possibly finding a hobby or doing some

charity work. This was my first thought because on a regular day; I tend to find a lot of

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things to occupy my mind and my day, so during retirement, I wish to do the same"

(personal communication, December 13, 2019).

When participants described retirement, most of them thought that they still have

time to become more aware and understand retirement. "In the future, I am planning to

hire a financial planner so that I can still have time, so maybe it will happen in a few

years" (Edie, December 17, 2019, Personal Interview). When Levitt first thought about

retirement, he said: "I need to save; I need to save up money till then." Lola is a younger

millennial, and she did not discuss retirement "with anyone as yet because this is in the

distant future, and I am focused on the now" (personal communication, December 13,

2019).

Even without deeper awareness of retirement, many participants admitted that they are

more likely to discuss retirement with family members or friends, indicating that this

generation has built a culture of increased transparency regarding money and the idea of

being passed along through family. "A few times, I talked about retirement with my wife

and friends" (Eva, personal communication, December 16, 2019). Bruna represents older

Millennials, and she recalled a conversation with her grandfather about retirement.

"Because of a talk with my grandpa, I am aware of many retirement issues like the

fact that social security might not be available when I retire. There is also the issue that a

lot of retirees do not make enough money to maintain themselves" (Bruna, December 16,

2019, Personal Interview). Also, Roberto, a younger Millennial, heard about retirement

from his parents, and he does not know much about it. "I do not think about retirement yet,

and I am not sure what I will do in the future, but I am aware I will need money to live on"

(personal communication, December 13, 2019). Based on 12 interviews, both younger and

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older millennials did not show advanced knowledge about retirement. Similar answers

were provided by Luna, who said, "Retirement is that I need to save up money till that

date. I haven't started to plan for retirement because I'm still too young. I have a financial

plan which is saving an amount every year for my retirement" (Luna, personal

communication, December 13, 2019).

For example, Bruna first heard about retirement from her boss socialization "when

I got hired at my first job, and my boss spoke to me about a 401K. I feel like I need to put

more thought behind retirement and educate myself" (Bruna, personal communication,

December 16, 2019). Also, Eva, an older millennial, described retirement as "the millions

of dollars that I am supposed to have saved up.It's a bit stressful to think about because I

know this is going to take a lot of work" (personal communication, December 16, 2019).

Pablo, also an older Millennial, talked to his parents about retirement; still does not have

much knowledge about it, "When I think about retirement, I think about free time that I

can spend with my friends and family" (personal communication, December 16, 2019).

Edie, also an older Millennial, responded, "At my age, I don't think about retirement

because I'm still young and got a fixed job, but I am not planning my retirement. I

honestly think it'll be a while until I get the chance to retire, but when I do, I hope I have

enough money to hold me up for the rest of my life (personal communication, December

17, 2019).

Furthermore, Ricardo heard about retirement for the first time from his girlfriend.

"I got hired by my employer; I did not know much about any kind of benefits, but my

girlfriend works as an accountant, and she explained to me about the 401K retirement

program" (Ricardo, personal communication, December 17, 2019). Sonia said, "My

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accounting professor talked about different retirement plans, but I am not thinking about

retirement yet because there is still some time. But I know that I will need to save so

much money to be able to survive during my retirement" (personal communication,

December 17, 2019). However, both groups worry about retirement. "I worry about

retirement. I do think about it. But it's just so far away. There are so many other things that

can happen first," said Levitt.

1.2 Level of Participants' Retirement Confidence.

According to Brio (2019), a growing number of Americans are extending their

careers; however, a majority of Millennials feel very confident about their retirement.

Most of them consider working until age 70. They say that there are "plenty of good

reasons to work longer, like boosting your savings, maintaining a social life, and, in some

cases, staying in better physical shape" (Brio, 2019). Ana is confident about retirement,

and she is aware of the necessity of planning to be ready for it. Lola, a younger Millennial,

is confident in the American Dream about her future retirement, and she believes that she

will have enough income to support herself and her family. Lola feels very confident

about her retirement, "I believe I will have enough money to cover all my expenses, and I

will be free of debt" (personal communication, December 13, 2019). Roberto also feels

very confident about retirement. "My career will provide me with an excellent income, so

I will be able to save a lot of money for my retirement" (personal communication,

December 13, 2019).

Roberto, younger millennial, also feels very confident about retirement. "During

retirement, I will have enough money because I will save enough during my life"

(Roberto, personal communication, December 13, 2019). Luna, who also represents the

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younger group of millennials, thinks that she will be able to earn enough money to live

comfortably during retirement. "After my graduation, I am planning to get a real job in the

hotel and save money so that I will be able to travel and have enough for all my expenses"

(Luna, personal communication, December 13, 2019).

Bruna is an older Millennial, and she is very optimistic about the future and her

retirement. "I believe that retirement is no longer a long-term goal and nowadays can be

archived within a few years" (Bruna, personal communication, December 16). Eva, an

older millennial, also seems to be optimistic about her retirement. "Hopefully, by that

time, I'll have plenty of wealth to take care of my family and me. When I see older people

driving around in their sports cars, it motivates me to start saving for when I retire. I

believe budgeting and saving my money for retirement now is a good idea" (personal

communication, December 16, 2019). Pablo also believes that he will earn enough money

so that he will live very comfortably during his retirement. "I still have time to save money

for my retirement because I am young, and there is still time. I am sure I will be ok when I

get older" (Pablo, personal communication, December 16, 2019). Edie (older millennial)

seems to be confident about his future retirement. "Some people in the United States retire

so late is because they are in debt, so they have to work longer; hopefully I don't end up

like that in the long run and get to be financially stable after my graduation" (personal

communication, December 17, 2019).

Ana does not have too much knowledge about Social Security benefits: "I do not

know much about Social Security retirement benefits except that whenever you work, a

portion paycheck goes there. Currently, in my job on every paycheck, I see the portion

that is taken out" (Ana, personal communication, December 12, 2019). Levitt believes

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that "the Social Security Benefits are in financial trouble and I do not think that the

government will have money to pay me when I retire" (Levitt, personal communication,

December 12, 2019). Stephanie admitted that she does not know much about the Social

Security retirement benefits "I do know nothing about the Social Security retirement

benefits, so I am not sure if I can count on receiving Social Security benefits when I will

retire" (Stephanie, personal communication, December 12, 2019). Pablo, an older

millennial, said, "I know that the Social Security Administration is in financial trouble.

There will not be money when I retire" (personal communication, December 12, 2019).

Also, Roberto believes that he will have to work during his retirement because there will

not be enough money for the government to pay Social Security benefits. Luna does not

understand much about Social Security retirement benefits. She believes Social Security

has some major issues. "I do not think it a good idea to count on Social Security

retirement benefits, and I haven't started to save money yet, and I have zero assets"

(Luna, personal communication, December 13, 2019).

Levitt wants to start saving for retirement soon. He is aware that he started to pay Social

Security deductions and contribute to a 401K since he started working at age 18.

However, he does not know about any type of financial planning. He does not know yet

what kind of planning steps he will take in the future to prepare for retirement. Lola

represents younger millennials, and she is aware of Social Security. "I do know social

security benefits, but it is also established that these social security benefits probably won't

exist when we reach the ages to receive them, My estimated Social Security retirement

benefits are undefined as the moment" (personal communication, December 13, 2019).

She also believes that that "right now it is a 50/50 chance of my generation receiving our

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social security benefits" (Lola, personal communication, December 13, 2019). Roberto

(younger millennial) does not count on Social Security benefits, "I will have to save

enough money because I will not benefit from the government" (personal communication,

December 13, 2019). Luna (younger millennial) is aware of Social Security benefits, "I

don't have much information about Social Security retirement benefits. I don't think it's a

good idea to count on the Social Security retirement benefits, and I haven't started to save

money yet" (Luna, personal communication, December 16, 2019).

Bruna (older millennial) does not know about Social Security retirement benefits,

and she is not aware of her estimated benefits. "Maybe I can count on receiving Social

Security retirement benefits during my future retirement" (Bruna, personal

communication, December 16, 2019). Eva admitted that she does not have too much

knowledge of Social Security, "I do not see anything like the benefits from Social

Security, the money simply isn't there" (personal communication, December 16, 2019).

Pablo knows what Social Security is, "my job deducts some money for Social Security and

Medicare, but I read that the system is broke, and the government will not have enough

money to pay us when we retire" (personal communication, December 16, 2019).

Regarding Social Security questions, Edie responded: "I don't know a lot about the current

retirement issues, however, I do know that a lot of people sometimes say that they are

worried that the government will not have enough money for social security in the future"

(personal communication, December 17, 2019).

Ricardo states: "I am aware that there will be a retirement income crisis, and

probably we Millennials will face it, and I do not think Social Security benefits will be

there for me when I retire one day" (personal communication, December 17, 2019). Sonia,

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who represents older Millennials, is also aware of Social Security benefits. "I know that I

am paying Social Security tax every paycheck, and it's for my future government

retirement, but I am not sure if there will be any money when I retire" (personal

communication, December 17, 2019).

Theme Two: Factors Linked to Retirement Preparation

2.1 Assets Allocation among Participants and Retirement Investments

Trepidation about stocks and a lack of knowledge about investing are major factors

propelling the investment jitters of the wealthy millennials in our study, despite an overall

median for Older Group millennials (30-37 years) of $69,000 (Pew Research Center,

2019). Ana has a car but does not have any major assets. She is hoping to buy a house in

the future, but first, she needs a better job. Levitt owes a car and some stocks because he

received them from Publix (his employer). Stephanie does not have any assets. "I do not

own many things, and I haven't started planning for retirement. I will start to plan when I

have my official job" (Stephanie, personal communication, December 12, 2019).

Bruna has a car and does not have any additional assets "I thought about having another

bank account or jar in my house to put extra money away for retirement" (Bruna,

December 16, 2019, Personal Interview). Levitt is planning to acquire some assets after

graduation when he works as an analyst, and he is planning to "travel and explore." He

currently earns $20,000 per year, and his "expected income after college should be around

$65,000" (Levitt, personal communication, December 12, 2019). Lola is in the younger

group, and she does not have any major assets. She has a 401K provided by her employer,

but she is not sure how the investment is allocated among different options. She said,

"other than my retirement savings, my other assets that I have is my car and some jewelry

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that I own" (Lola, personal communication, December 13, 2019). Roberto (younger

millennial) said: "I do not have a car now or any major assets. I pay Social Security from

my paycheck, but I am not sure if this is an asset" (personal communication, December

13, 2019).

Luna does not own many assets; she stated, "I work at a hotel as front desk, I don't

spend my income. So, I do not owe anything, and I use my parent's car" (personal

communication, December 13, 2019). Bruna part of the older group of the millennials, and

she does not have any retirement investments; however, "I have a savings account and

grandparents that I can depend on" (personal communication, December 16, 2019). Pablo

still lives with his parents and owns one car. "I am still living with my parents because it’s

easier for me and I do not have to worry about bills and I can pay my car on time, this is

only one big asset that I have, but I want to buy a house one day" (personal

communication, December 17, 2019).

Regarding questions about assets allocation and retirement investments, Edie

responded, "I only pay Social Security, and I do not have any investments or savings. I

also do not own any valuables" (personal communication, December 17, 2019). Ricardo

(older millennial) does not own any big assets, "I just have my car, but I am still paying

for it, and I do not have any financial investments. I have a 401K at the firm, but I did not

check the balance. In June, I had around $7,200" (personal communication, December 17,

2019). Sonia, also an older Millennial, works for a bank, and she said, "I am trying to save

some money for investments, but it very difficult because I have too many credit cards"

(personal communication, December 17, 2019). Sonia owns a car, and she also has some

money in a 401K plan. "I am not sure how much money I have in my 401K, and I do not

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know how to check the statement, I do not have any savings yet" (personal

communication, December 17, 2019).

2.2 Retirement Savings

A majority of both groups have no savings, including older millennials. However,

most of them do not have much credit card debt. Ana does not have retirement savings,

yet "no, I haven't even though I know I should" (December 12, 2019). Levitt does not

have any savings, but he has a 401k retirement plan with Publix supermarket. Stephanie

wants to become a financial or event planner, and she hopes to earn around $15 per hour.

Currently, she has a meager income. Stephanie thinks about retirement as a "benefit";

however, she still does not know the meaning of it. Lola (younger millennial) started to

save for her retirement, "I have started to save for my retirement because, of how

everything is going with our Social Security benefits, I will not just sit around and depend

on the benefits that I should receive from the government" (personal communication,

December 13, 2019). She also has a 401k plan, "401k is included in the benefits, so I

don't have a clear estimate of how much is in those accounts. Now I have a job that offers

401k, but I can't contribute to the maximum matching level" (Lola, personal

communication, December 13, 2019). However, she is not sure about the return on her

investment, "I do not know my average annual return on my investments from my savings

plan" (Roberto, personal communication, December 13, 2019).

Bruna (older millennial) does not save money yet, but "will plan for retirement,

although I am not sure because I feel like I have a lot of time. But at the same time, I also

feel like I do not have enough time" (personal communication, December 16, 2019).

Relationships are the first planning thoughts and actions she wants to implement regarding

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retirement. Bruna has a 401k offered by her employer; however, she does not know the

balance. She also does not know her an estimated return on 401K savings. Bruna has some

savings from her grandfather that she can use it in the future. Luna did not take any course

about retirement and saving. She is currently working in a hotel at the front desk, and she

is planning to continue her education at the graduate level. One day she wants to work for

a marketing firm. Her current income is around $32,000, and she does not have the desired

income yet. She said her "desired income would be at the better job." She did not start

preparing for retirement. She has done some unspecified volunteering job and now

working for a hotel she expects to earn money for retirement as well. She is certain that

she will be able to save and buy some assets after graduation when she gets a better job.

Bruna did not recall any retirement courses at the university. However, Bruna talked to her

boyfriend, and "he told me that we have to save a lot of money to be able to live

comfortably during our retirement" (Bruna, personal communication, December 13,

2019).

Eva (older millennial) does not have any special retirement savings; she said, "I do

know about the 401k plan that some jobs offer for employees, but with the jobs that I've

had, they didn't offer any 401k benefits" (personal communication, December 13, 2019).

Pablo (older millennials) also has 401K, "I know that I have a 401K with my current

employer and they match like 2%, but I do not understand details, and I am not sure how

this program works" (personal communication, December 16, 2019). Edie does not have

any retirement savings, "unfortunately, I do not have any saving yet, but I hope to start

saving money soon" (personal communication, December 16, 2019).

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"I have a 401K at the firm, but I did not check the balance. In June, I had around $7,200"

(personal communication, December 17, 2019). Besides a 401K, Ricardo does not have

any additional retirement savings. Also, Sonia stated: "I am not sure how much money I

have on my 401K, and I do not know how to check the statement, I do not have any

savings yet" (personal communication, December 17, 2019). Sonia did not mention any

additional retirement savings.

2.3 Expenditure Control

Ana loves shopping, "especially online, because you can get way better deals than

in stores. I am not so picky about where I usually just go to the mall and go through the

stores looking for whatever it is that I need. I usually buy things when I need them or want

them but not to overdo it" (Ana, personal communication, December 12, 2019). Anna

likes to shop "I enjoy buying clothes and games. I prefer to go to the mall and shop with

my friends" (Levitt, personal communication, December 12, 2019). Stephanie likes to

shop; however, she does not overspend because she does not earn so much money. She

said, "I like to buy dance materials for the new seasons, and my major expenses are for

Uber and food' (Stephanie, personal communications, December 12, 2019).

Lola, a younger Millennial, spends her income on bills such as credit cards, loans,

Netflix, etc. She likes to shop, "I like to buy mostly clothes and especially heels. I usually

shop online at stores like Forever 21, Papaya, Charlotte Rousse, and many more"

(personal communication, December 13, 2019). She continues saying: "my recent

shopping experience would be a month ago when Forever 21 had a blowout sale, and

everything in my cart came up to about $50" (Lola, personal communication, December

13, 2019). She hopes to save more money when she gets a better job, "my desired income

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from any future jobs is over $10.00 an hour. After I finish my education, I hope to earn an

income of $40,000-$60,000 a year and save more" (Lola, personal communication,

December 13, 2019). Roberto stated, I believe I am in control of my spending and my

money, each month I write in my book my expenses, how much I got paid, and my

remainder of funds and every other spending for that month" (personal communication,

December 13, 2019).

Luna, who represents younger Millennials, likes to spend money on clothing and

shoes, and "my major expense is nightlife" (personal communication, December 13,

2019). Bruna does not enjoy shopping in person. She prefers to shop online and only for

necessary things, such as food. Regarding control of spending questions, Bruna also

represents older millennials, and she said, "I do sometimes lose track of my spending and

get carried away (Bruna, personal communication, December 16, 2019). Eva (older

millennial) enjoys shopping, "I do love to shop, but at heart, I am super cheap when it

comes to buying clothes for myself. I cringe when I want anything that is over thirty

dollars, I buy more food than anything else at this point" (personal communication,

December 16, 2019).

Pablo (older millennial) stated that "I love to party with my friends, and I spend

almost my entire income for going out" (personal communication, December 16, 2019).

Regarding questions about expenditure control, Edie responded, "I like to spend money

for games, clothes, and going out, but I know I will have different expenses when I retire

one day" (personal communication, December 17, 2019). Ricardo enjoys shopping,

"unfortunately, even though I avoid visiting online stores, I still love to shop in the mall. I

think the one thing that still "gets me" is seeing new things in the stores" (personal

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communication, December 17, 2019). Ricardo also likes to spend money going out with

friends. "Most of my income I spend on my car, clothes and dining out with my friends,

and credit cards payments," Sonia said.

2.4 Student Debt

Ana, a younger Millennial, qualifies for the Free Application for Federal Aid

(FAFSA), but she must cover 15% of tuition, and she took some personal loans, and her

debt is around $13,000. She does not think that liabilities will have an impact on her future

retirement "I do not think so because I will try to pay it off as quickly as I can, and I will

never skip a payment" (Ana, personal communication, December 12, 2019). Levitt has

some student loans, but "I am not sure how much. I do not worry about it because I will

pay all of them after graduation when I work in my real job" (Levitt, personal

communication, December 12, 2019). Lola (younger millennial) has some student loans,

and she will need to borrow more, "I will need more money for my future education, so I

am not sure how much I will end up with" (personal communication, December 13, 2019).

Roberto (younger millennial) does not have any student debt because his parents

pay his tuition plus, he has a scholarship at STU. Student Six took some students' loans

and she has a debt approximately $8,600 (all direct loans). Also, Bruna who represents

older Millennial has some student debt, she says: "I owe around $17,000 and I think I will

need to borrow more because I am not done yet with my program, the education is so

expensive in this country" (personal communication, December 16, 2019). Eva (older

millennial) owes more than $21,000, "unfortunately, I will have to borrow more money to

finish my education, and I am not able to pay out of my pocket this high tuition" (personal

communication, December 16, 2019).

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Pablo who also represents older millennial group has some student debt as well, "I

know I have some loans, but I always sign the papers and I am not sure how much I owe.

The loans pay for my tuition and books at STU" (personal communication, December 16,

2019). Edie has some student debt, "I have some direct loans of approximately $21, 000

because I went for undergraduate to STU as well, and the graduate program is more

expensive" (personal communication, December 17, 2019). Ricardo (older millennial) also

has student debt and said: "I have federal and private student loans, and I believe I owe

around $18,000 for both, Most of my debt goes for tuition and books" (personal

communication, December 17, 2019). Furthermore, Sonia has student loans, "I took

student loans during my undergraduate program and I had to take for other matters as

well. Currently, I owe around $21,300 but I am not worried too much; I will be able to pay

this amount back after my graduation" (personal communication, December 17, 2019).

Theme Three: Factors Linked to Future Retirement Expectations

3.1 Health Expectations

Ana has very strong health expectations during the retirement and she does not

have any certain diseases history, "my family does not have any certain diseases.

Everyone in my home is pretty healthy and lives a long life" (Ana, personal

communication, December 16, 2019). Student one has health insurance provided by Blue

Cross Blue Shield Federal Employment program. She hopes to have the same insurance

during her retirement. Levitt is an athlete and does not think that he will face any health

issues in the future because "I am fit and my family is healthy" (Levitt, personal

communication, December 12, 2019). Stephanie does not have any illness history in the

family, and she expects to be very healthy until old age. She also does not have any life

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insurance, but she has health insurance required by the university, regarding health

expectations, Lola, younger millennial, said, "my family does have a good history of

longevity, only a small percentage of them have died from diseases and other factors"

(personal communication, December 13, 2019).

Luna does not have any medical issues in her family history. "I haven't had any

major medical issues, and I have health insurance, but I don't plan on having the same one

when I retire and if I became disabled, I would need more money for retirement" (Luna,

personal communication, December 13, 2019). Bruna's family has some history related to

cardiovascular disease and there are also some cases of cancer. She does not personally

have any medical issues. She is also planning to use health insurance and it can be the

same as now. Bruna has long-term care insurance provided by her employer. Eva also has

long-term care insurance and she expects "live very long and healthy lives" (personal

communication, December 16, 2019). Pablo who also represents older millennials is very

optimistic about his current and future health. "I am in very good shape now and I think I

will be that way for many years including my retirement years" (Pablo, personal

communication, December 16, 2019).

Edie was an athlete and his family does not have any health issues. Ricardo (older

millennial) is in excellent health, "I am taking care of myself, and I have health insurance.

My family health overall is very good. I am sure I will need better health insurance and

some kind of life insurance when I get older" (personal communication, December 17,

2019). Sonia also is healthy, "I have an asthma problem but overall I am in very good

health and my family too. I have health insurance and also have life insurance provided by

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the bank" (personal communication, December 17, 2019). Furthermore, Sonia is also

aware that she will need more comprehensive insurance when she will retire in the future.

3.2 Financial Expectations

Stephanie hopes to make enough money to cover all future expenses. "I know I

will have expenses such as household bills (mortgage, light, water, cable), and extra

personal stuff" (Ana, personal communication, December 12, 2019). During retirement

she expects "I think by the time of my retirement, my kids would be old enough to take

care of themselves and I want to be able to support myself and my family by working as

hard as I can and by doing financial plans. I plan to do not just retirement plans but

investments as well" (Ana, personal communication, December 12, 2019). Levitt said, "I

will have enough money for retirement so I will live a stress-free life" (personal

communication, December 12, 2019). Stephanie hopes to earn at least $15 per hour after

graduation. Lola, who is also younger Millennial, hopes to make enough money to live

comfortably during retirement and she also hopes to inherit some assets. She stated, "With

the future job that I receive I hope that I would receive a defined benefit pension through

work or even the equivalent" (Lola, personal communication, December 13, 2019).

Bruna is expecting to earn $50,000 to $70,000 per year; however, she is not sure

how much assets she will need in the future to secure her retirement. Also, Bruna does not

know what kind of type of liabilities will impact her future retirement. She is not aware of

her personal future expenses "I would not be able to because I still am not sure what the

future holds, but I will make sure to have enough money put away for retirement" (Bruna,

personal communication, December 16, 2019). She is also planning to financially help her

family. She needs enough money to be able to cover all living expenses in general.

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"Hopefully by my retirement I will have plenty of wealth to take care of me and my

family. When I see older people driving around in their sports cars it motivates me to start

saving for when I retire. I believe budgeting and saving my money for retirement now is a

good idea. I also plan to invest so that the money can grow with little effort" (Eva,

personal communication, December 17, 2019).

Regarding retirement financial expectations Pablo said, "I am money-oriented

person and I believe I will have enough investments and savings to live comfortably

during my elderly years" (personal communication, December 17, 2019). Edie said "I am

making good money, but I spend all. In near future I will save some money so I can buy a

house" (personal communication, December 17, 2019).

"I make like $55,000 per year and this not enough to save for retirement but I hope after

my graduation I can make like $80,000…" said Ricardo, (personal communication,

December 17, 2019). Ricardo continued "I have high financial expectations, because I

want to buy a house and live without any financial issues especially during my retirement"

(personal communication, December 17, 2019). Sonia expects to earn enough money to

cover all expenses including housing and medicine when she retires one day.

3.3 Leisure Expectations

During retirement Ana expects to have a house paid off, and "I would like to spend

time by cooking breakfast or go out with friends. I would like to have time to relax and be

able to go to travel to Europe sightseeing or some extra-ordinary places" (December 12,

2019). Levitt also wants to travel during retirement and said, "My future expectations

about retirement is to live very comfortable and not worry about the stress and have

everything paid off" (personal communication, December 12, 2019). Stephanie wants to

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travel during retirement "I would like to travel to places I've never been before"

(Stephanie, personal communication, December 12, 2019). Lola (young millennial) plans

to retire around the age of 70, and she expects to have "more freedom to be able to do all

the things that I couldn't accomplish when I was growing up, stuff like vacations and

traveling, especially with friends and mostly family. I would like to spend my time

traveling the world" (Lola, personal communication, December 13, 2019).

She also wants her kids to help her with retirement plans "I hope my kids will help

me with my retirement plans. They should be supporting me after all rising that I did for

them. My leisure expenses during my retirement will be related to "house, children, and

bills. I do not want support from my children while I am retired but I will support them"

(Luna, personal communication, December 13, 2019). Bruna represents older millennials

and she is planning to retire at the age 60 and she wants to spend more time with her

family and "doing new hobbies". I see spending time with my family because my grandma

calls people from my family every day and invites them over to her house for a meal"

(Bruna, personal communication, December 16, 2019).

During retirement she wants to travel a few times per year. Eva has similar leisure

expectations during the retirement, "I want to spend my retirement traveling the world and

being close to the people I love. I want to have many flows of income, so I won't run out

of money; I don't want to have to worry about money" (personal communication,

December 16, 2019). Regarding questions about leisure expectations Pablo responded "I

would like to own some real estate and travel around the world during my retirement time"

personal communication, December 16, 2019). Like other responses, Edie wants to travel

and spend some time on hobbies. Ricardo said "it may seem like a stereotype, but I like to

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golf during my retirement, and I want to travel and I also want to own a house and pay off

all my student loans" (personal communication, December 17, 2019).

Sonia (older millennial) has similar leisure expectations like all interviewees, "I

want to live comfortably spend more time with my family and kids, and I would like to

travel to all different countries and experience new cultures" (personal communication,

December 17, 2019).

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Chapter 5

Discussion

Collectively, this study provides insight on individuals, younger and older groups

of millennial students, and shows their awareness of retirement issues. This research also

provides insights into their retirement preparation and future expectations about

retirement. Also, it explains factors that may influence retirement confidence, awareness,

preparation, health, financial, and leisure expectations. The purpose of this chapter is to

discuss the results of this current study and examine what it may tell us about Millennial

Students' awareness of retirement issues, retirement preparedness, retirement process, and

future expectations. The findings support the value of considering retirement planning

from the experience and perspective of two millennial groups (younger and older). They

also suggest areas for future research and its importance and limitations. This chapter is

not intended to be a detailed review of the previous chapters; however, it will focus on

areas of alignment with those prior studies to provide additional insight.

Research Questions

The following are the research questions:

Primary research question:

1). Are millennial students (younger and older), as represented by the participants in this

study, aware and prepared for their future retirement, and is this consistent with their

future retirement expectations?

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Secondary research question(s):

1) Awareness: Are younger and older millennial students aware of the issues,

requirements, programs, and challenges involved in retirement?

2) Preparedness: Are millennial (younger and older) students' making, or have they made

appropriate retirement plans?

3) Future Expectations: How well do they expect to live during retirement realistically,

and are they adjusting their awareness and preparedness and accordingly?

The primary research question presents a high-level overview of both younger and

older millennial students' experience regarding knowledge and preparation for their future

retirement and their future retirement expectations. Specific discussions of socio-

economic factors, retirement confidence, financial literacy, retirement planning, assets

allocation, awareness of retirement issues, retirement preparedness, and future

expectations, saving, expenditure control, debt, social security system issues, retirement

expectations, and life expectancy. The results of the research will be explained fully in

appropriate detail, along with the implications for young adults (both cohorts) and

whatever conclusions and recommendations for further study that may emanate from the

study. Also, how they affect the retirement awareness, process of retirement preparation,

including how well do they expect to live during retirement realistically? They are

adjusting their awareness and preparedness accordingly, as posed in subsequent secondary

questions.

Awareness Factors, Retirement Issues - Discussion and Remarks

The assumption underlying this research is that retirement is a transition most

people anticipate will occur, including those members of the millennial generation.

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Indeed, all respondents (both groups) in this study expect to retire, and almost all of them

believe retirement will be a positive period in their lives. Only Roberto does not expect to

retire, saying, "I am sure I will have to work during my retirement," suggesting that he

may not be able to afford to retire. Older adults have been returning to and remaining in

the workforce both for financial reasons and a desire to continue being a productive

worker (Brown, 2003). Others though have not been making commercial preparations but

still plan to retire so that these preparations maybe for later life needs in general. Also,

younger and older millennial students would be delaying their retirement. However, some

of them are under the impression (Levitt and Bruna) that retirement starts between ages 50

and 65. All participants are very confident about their retirement, and both groups are

aware of the necessity of planning to be ready for it. Both cohorts of Millennials believe

that they still have enough time to start planning for retirement.

Both groups of participants are generally aware of Social Security benefits.

However, it's unclear whether young people have more in-depth knowledge about Social

Security eligibility and interests when thinking about when they will retire. Only two

respondents (older Millennials) in their thirties in this study say they expect to begin

collecting Social Security benefits at age 67. Most of the young respondents say they do

not know when they will start receiving benefits. Planned retirement age may be more

reflective of expectations to take early Social Security benefits. With life expectancy

rising, the number of years spent in retirement is expanding, and average retirement age

remaining in the first to mid-sixties, people are and will continue to spend a large portion

of their lives retired.

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People will, therefore, need a substantial amount of money to be able to retire

comfortably but are spending a smaller part of their lives accumulating retirement income

(Aston, 2020). Retirement planning is thus critical and should be initiated as early in life

as possible since the interest earned on investments compound over time. The vast

majority of each cohort in this study does not anticipate receiving Social Security, and

only Levitt and Edie believe these benefits will be a significant source of retirement

income. The realities regarding reliance on Social Security have already been discussed at

length in previous chapters; will be returned in the final section of this chapter.

Parenting Rationalization and Millennials' Retirement

Awareness and Issues

Parents of Millennials focus more on personal development and self-esteem,

leading many Millennials into buoyant optimism and strong confidence in their abilities.

This generation was told that they are unique, and they can achieve great things (Monaco

& Martin, 2007). They grew up with a perception about themselves that "they are special

or a princess or a rock star or whatever their T-shirt says" (Twange, 2013).

Millennials are characterized as being overly dependent on their parental figures, which

can retard the developmental transition from "depen dependent child to autonomous adult;

overdependence often translates into overdependence on faculty and administrators"

(DeBard, 2004). A delicate balance should be practiced between providing students with

guidance about retirement while encouraging independent thought and problem-solving

regarding retirement awareness and planning.

Most of the respondents learned about retirement from their family members or girlfriends

or boyfriends. Bruna began talking about her experience with retirement preparedness

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with her grandfather, "the first time I heard about retirement was from my grandfather.

However, I have not started to prepare for retirement simply because I am not good at

saving money" (Bruna, personal communication, December 16, 2019). Pablo says, "I have

wonderful parents, and they always take care of me. They are my best friends" (Roberto,

personal communication, December 16, 2019). Both groups tend to be very confident

about retirement, and parents passed this confidence into respondents. "My mom says I do

not have to be worried about retirement yet because many things will change, and I am too

young to think about it" (Roberto, personal communication, December 13, 2019).

Both groups (younger and older millennial students) know retirement is essential. Both

groups do not think much about retirement. Both groups are focused on the benefits of

their retirement, spending time with their family, using their free time, etc., but don't focus

on how they are going to do that financially. And, the older Millennials often discussed

retirement with others while the younger typically didn't. Remarkably, not a single student

had comprehensive working knowledge about retirement plans. "Millennial workers on

their retirement knowledge and preparedness failed a test on the basics of retirement

questions" (Adamczyk, 2019).

Remarks:

Remarkably, both groups have high confidence in their ability to retire

successfully. However, their high trust is not justified by knowledge about retirement.

Regarding retirement issues and Social Security, all participants distrust social security

and share a legitimate concern about whether Social Security will remain viable. Still, they

don't know much about the program(s), and cannot articulate the reasons for this lack of

confidence.

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Retirement Preparation Factors – Discussion and Remarks

This study considers multiple dimensions of retirement preparation and

expectations among two millennial cohorts. By not limiting the research to one or two

planning activities as previous studies have done. This research provides a more

comprehensive perspective on what both groups of millennial students are doing and what

they experience and what they think their retirement income will look like. None of the

respondents have begun making retirement preparations, although the types of

preparations in regard to 401k plan vary considerably. Both cohorts (younger and older)

have done no preparatory activities such as saving or security investments.

In terms of personal assets for retirement income, both groups report a higher

likelihood of expecting and relying on more future personal assets. Both groups of

younger and older Millennials own vehicles but no other significant assets. Not

surprisingly, most participants (Ana, Stephine, Roberto, Luna, Bruna, Ricardo, and Sonia)

say they will have money from their bank savings accounts, money market accounts, and

investments. However, these accounts do not yet exist. Currently, Ana (Cohort 1),

Stephanie (Cohort 1), Lola (Cohort 1), Bruna (Cohort 2), Eva (Cohort 2), Pablo (Cohort

2), Ricardo (Cohort 2), and Sonia (Cohort 2) anticipate in 401k retirement plans. In sum,

Social Security, 401Ks, and assets are likely to remain relevant sources of retirement

income for future cohorts of older and younger Millennials. Currently not everybody has

access to additional sources of retirement income such as pensions, other retirement plans,

assets, savings, and investments. It should be noted that Levitt owns some stocks because

he received them from Publix (his employer). In regard to retirement savings, only Bruna

has personal savings designated for retirement.

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In addition, both cohorts of Millennials enjoy buying clothes and necessities

online. Most of the respondents believe that online they can better deals, they say "we

have no money, we're more likely to value thrift stores or stores that offer special

discounts for our age group" (Luna, personal communication, December 13, 2019). Lola

likes to shop online and in person, "I like to buy mostly clothes and especially heels. I

usually shop online at stores like Forever 21, Papaya, Charlotte Rousse and many more"

(personal communication, December 13, 2019). Older Millennials do not like to spend too

much money on clothes, for example: "I cringe when I want anything that is over thirty

dollars. I buy more food than anything else at this point" (Eva, personal communication,

December 16, 2019). Based on their stories and experiences they also care that many of

these stores give back to the community, such as Goodwill and the Salvation Army,

because as Millennials, they value communication and community. Another major

expenditure is commuting; they spend a significant part of their income on Uber and Lyft

services. The older cohort of Millennial students instead of buying loads of things they

don't need, prefer to spend a weekend away from home or dining out, party and "making

memories that will last a lifetime" (Sonia, personal communication, December 17, 2019).

As of the second quarter of the 2019 fiscal year, "for borrowers ages 25 to 34—a

significant share of the Millennial population—there was $497.6 billion in outstanding

student loan debt for about 15.1 million borrowers. This translates to an average student

debt of around $33,000 dollars for each borrower" (Whistle, 2020). All participants have a

student debt and the lowest is around $8,600 (Luna- younger Cohort) and the highest is

$21,300 (Sonia -older Cohort). This high debt is especially true for a millennial generation

where many entered the workforce at a time when the economy was weak after paying

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more for college than previous generations. It should be noted that some of the

respondents of both cohorts do not know the balance of their student loans.

Participants' Value of Money

Harris (2017) argues that Millennials have faced a uniquely unfair economy, one

substantially different from those their parents experienced. If they're "bad with money,"

it's mostly because they're debt-ridden and stressed out, and because it's impossible to be

"good with money" if you don't have any.

Both (older and younger) Millennial cohorts in this study seem to be a little naive or

delusional about money, but very optimistic. Although none of the participants have any

major savings, they believe they will have enough money during the retirement. Each

participant inputted their future income expectations (raises, inheritances, other assets) and

them except to earn between forty-five and seventy thousand dollars per year, and they

believe these incomes will guarantee their retirement cashflow. According to Christopher

Kurz, Geng Li and Daniel J. Vine (2018) "Millennials are less well off than members of

earlier generations when they were young, with lower earnings, fewer assets, and less

wealth" (p. 57).

All participants prefer brands that offer a unique experience, value for their money

and great customer service. Both groups stay loyal to brands they purchase. "When I shop

online, I always use the same stores and brands" (Levitt, personal communication,

December 12, 2019). In addition, both groups want to give back to the community and "I

expect the brands they follow will do the same (Pablo, personal communication,

December 16, 2019). As Millennials prefer experiences over things, they heavily factor a

brand's customer experience into their perception of a brand. Most respondents would

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switch to a different retailer or brand if they have a negative experience. All participants

do not typically spend more than fifty dollars when they shop traditionally or online.

Remarks:

Most participants from both cohorts of Millennials have a 401k but really don't

have much savings. The Millennials do know they must save. Several students have 401k

but don't know what it is for or what the current value is. Both cohorts are most confident

in their savings, but most of them haven't set a savings target yet and only one participant

has savings. Not surprisingly, income is by far the most consistent predictor of retirement

plans and expectations for both cohorts of Millennials. All participants expressed during

the interviews that more income leads to an enhanced ability to put money into retirement

accounts compared to those who barely have enough money to afford daily basic needs.

In addition, both cohorts do not plan to invest until they are older. A car is their

typically only asset, which is not really an asset but a liability. Generally, they do not have

assets. Both younger and older Millennials' students like shopping especially through

internet but do not regularly overspend; they spend no more than fifty dollars. However,

younger Millennials prefer to go to the shopping mall. There is only one student

consistently overspends in shopping. All participants have reliability in loans to pay for

their education. Many already pay loans, others don't care about them, but both cohorts of

younger and older Millennial Students do not pay much attention to student to student

loan amounts or terms and expect to repay them from future earnings.

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Future Retirement Expectations: Health, Finance, and Leisure- Discussion and

Remarks

As Millennials age, they have access to revolutionary treatments and technologies

developed to minimize the risk of disease and other health problems associated with

aging. "Millennials have been labeled the most health-conscious generation ever" (Yale

Perspective, 2018), partly due to their unprecedented access to the incredible essence of

health information now readily available online via the internet. With the discovery of

powerful "superfoods" like kale, chia seeds, and cayenne pepper, it is now easier than ever

to eat a healthy diet.

Also, today's jobs are less physically demanding today than historically, making it

more reasonable for workers to remain employed longer into their retirement years. A

strategy of working longer may become one that is a requirement for many Millennials. In

determining the length of work, life-expectancy also needs to be taken into consideration

as life-expectancy continues to grow (Lynch, 2012; Pfau, 2012; Purcell, 2000; Yakoboski,

2011). Millennials could be the first generation reaching the age of 90 in large numbers

and who will spend about one-third of their lives as "old people" (Carstensen, 2016)

Dimock (2019) research shows the beginnings of troubling "generational health patterns

that could hamper the future prosperity of millennials, and in turn, the prosperity of the

U.S. If the current pace of decline in millennial health continues unabated, the long-term

consequences to the U.S. economy could be severe" (p.3).Millennials now make up the

largest share of the U.S. population and labor force, placing them at the heart of U.S.

economic growth as consumers, workers, and business owners. Therefore, their health

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plays an essential role in the years ahead and will determine not only the overall health of

the country but also its potential economic course.

According to Stress in America (2015), Millennials are seeing their health decline

faster than the previous generation as they age. This extends to both physical health

conditions, such as hypertension and high cholesterol, and behavioral health conditions,

such as major depression and hyperactivity. Poorer health among Millennials may keep

them from contributing as much to the retirement plans as they otherwise would,

manifesting itself through higher unemployment and slower income growth. BCBC

(2019), reports that under the most adverse set of projections, lower levels of health alone

could cost Millennials more than $4,500 per year in real per-capita income compared to

similarly aged Gen-X. Unfortunately, this cost can be higher in the current situation when

the entire World fights with Covid-19.

This research reveals that younger and older Millennials are very optimistic about

their health, and all of them described themselves very healthy. "My family doesn't have

any certain diseases. Everyone is my family is pretty healthy and live a long life, and most

likely, I will live in excellent health during my retirement" (Ana, personal communication,

December 16, 2019). Also, Levitt is very optimistic about his current and future health, “I

have been healthy and haven't had any problems. I play soccer, so I am in perfect shape,

and I do not have any health issues, I am certain that my health and well-being will be the

same when I retire one day" (personal communication, December 16, 2019). My family

doesn't have any diseases that impact me. I haven't experienced any major medical issue.

Also, Eva said, "my family doesn't have any diseases that impact me. I haven't

experienced any major medical issues. I am walking dogs every day, and this is an

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excellent exercise, I am planning to exercise, and live healthy until I die one day"

(personal communication, December 17, 2019).

Both cohorts of younger and older millennial students expect to live longer, and all

of the participants are reportedly healthy at the moment. Regarding retirement health

expectations, all participants strongly believe that housing and health care will be the most

significant expenses they expect to incur during retirement. House is less likely to be

selected as the most significant anticipated expense by those at higher income levels, as

they are most likely to expect that they will own their homes and be mortgage-free when

they retire. Importantly, both younger and older millennial students recognize that they

will be responsible for a significant level of health care expenses and long-term care

insurance.

In terms of financial expectations, both cohorts of Millennials are very confident

they will be generating more income during their professional career. "I will have enough

money for retirement so that I will live stress-free," said Levitt. "I make like $55,000 per

year, and this not enough to save for retirement, but I hope after my graduation I can make

like $80,000" said Ricardo (personal communication, December 17, 2019). Ana, Lola,

Bruna, Eva, and Edie are confident to have various income sources during their future

retirement. The different income sources they expect during retirement is based on how

confident they are that each source will prove meaningful in terms of providing retirement

income. "I am a money-oriented person, and I believe I will have enough investments and

savings to live comfortably during my elderly years" (Ricardo, personal communication,

December 17, 2019).

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Retirement as a part of the "American Dream"

Millennials (older and younger) are not subscribing to the original and pure

expression of the American Dream. It can be inferred that they are challenging (or

outright rejecting) the dominant narrative of their predecessors by choosing to be "single,

childless, renting, going to college, or serial job-hopping—all things considered "un-

American" not that long ago. "Student debt threw a giant monkey wrench into the works;

one can reasonably argue, serving as a disruptive force that shaped the human soul"

(Samuel, 2019) of an entire generation. "When I retire, I would be doing things at home

with my grandchildren. I haven't put much thought into it, but that's the American Dream"

(Ana, personal communication, December 12, 2019).

The research shows that both cohorts see their career trajectories and retirement

differently from the way their parents and grandparents saw theirs. "I don't want to work

for a big company, and I want to work for a company that will make me feel comfortable

and happy. I do my own thing and enjoy life" (Bruna, personal communication, December

16, 2019). Both cohorts want to pursue ambitions now, whether that means going for a

dream job right out of college, working for someone else's promising start-up, or creating

a location-independent business. They want a job that allows great work and life balance

as part of the American Dream. Also, younger and older Millennials do not want to wait

until retirement, so to travel, they want to create experience now, but they want to travel

more during their retirement. Traveling around the World became a part of their new

vision of the American Dream. Also, creating or supporting non-profits or pursuing

hobbies is a part of the reinvented American Dream. They may even be planning not to

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retire at all because they love their work. "If I do what I love, I can work until the end of

my life" (Sonia, personal communication, December 17, 2019).

Regarding financial expectations, both cohorts of younger and older millennial

students expect to have enough money during their retirement, and they expect to travel

during their retirement. Most of the respondents are confident that they will own or rent

homes. But they are not sure if they will be able to pay off their (financed) homes. Some

of the participants expect to make mortgage payments during their retirement. "During my

retirement, I would like to have enough money to pay all my bills and mortgage" (Ricardo,

personal communication, December 16, 2019).

Regarding leisure expectations, both groups want to spend more time with their

families and travel during their retirement. "I would like to have time to relax and be able

to travel to Europe sightseeing or some extra-ordinary places" (Edie, December 17, 2019).

Eva has similar leisure expectations during the retirement, "I want to spend my retirement

traveling the World and being close to the people I love. I want to have many flows of

income so that I won't run out of money; I don't want to have to worry about money"

(personal communication, December 16, 2019). Some of the participants described leisure

expectations during retirement differently; they expect to spend more time with friends

and family during their retirement. "Hopefully, by my retirement, I will have plenty of

wealth to take care of my family and me" (Lola, personal communication, December 13,

2019). Student Ana also expects to spend more time with her family during retirement, "I

would like to spend time cooking breakfast or go out with friends. I would like to have

time to relax (Ana, December 12, 2019).

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Remarks:

All participants expect to live longer and in good health. All of them have medical

insurance, and most of them have life insurance. However, only older cohort millennial

students think of the need for insurance. Besides, both cohorts demonstrate optimism

concerning their future health.

Furthermore, all participants are confident to have sufficient income to cover

living expenses during retirement. Millennial retirement expectations are not well aligned

with the planning steps they've taken to date. But they are generally open to annuities, and

guaranteed lifetime income in particular, as solutions that can help them plan to have

lifetime retirement income and alleviate their concerns about investing and financial

stability. The cohort of younger millennial students plans for their family to pay for their

expenses.

All participants' financial expectations are generally high, but specific plans to get

to that state are generally not apparent. Both cohorts of younger and older millennial

students think of retirement as leisure time. However, younger Millennials think of

traveling while older Millennials think more of family time. A life of leisure and

fulfillment in retirement will require solid planning beginning early.

Limitations

Some researchers discussed the limitations of the narrative approach to research.

They referred to data collections, including the merits and drawbacks of various data

collection methods across a range of IPA studies. And, they concluded that limitations are

not always reported "in sufficient detail and caution researchers to acknowledge and

discuss the advantages and disadvantages of their chosen collection method" (Brocki &

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Wearden, 2006). The scope of this study has been intentionally limited to participants who

are College Students attending one university in the South Florida region. The sample was

selected based on opportunistic and emergent sampling chosen by the researcher. The

researcher also made decisions during the process of collecting data based on in-depth

interviews. Limitations of the IPA narrative design also relate to the understandings of the

lived experience of the participants (Clarke, 2009). Other researchers question the rigor

and validity of these research studies (Yardely, 2000 & Barbour, 2007).

The study is also limited by interview schedule questions design, and it does not

provide a statistical significance. However, the methodology will provide a practical

significance regarding college students (Business Majors) and their retirement awareness

and preparation. Although this limits the number and type of questions, it benefits in the

areas of research design, generalizability, and content and reliability elements. Also, the

study is limited to a "snapshot" in time during a limited period in December 2019.

Also, retirement expectations and preparations, as indicated by some of the "life

stage" findings (both Cohorts) in this study, are likely modified as individuals approach

retirement age. Changes in life circumstances and the occurrence of major events may also

affect plans, such as the loss of a job, marriage, birth of a child, health problems, and

death of a spouse, because of the need to re-prioritize finances. Poor health, for instance,

affects the decision to retire early (Taylor & Shore, 1995). Such events are not assessed in

this study, and multiple waves of data and additional interviews are needed to truly

examine the impact of life events on finances and savings behaviors. Besides, economic

conditions affect retirement expectations and preparations, with people likely to be more

pessimistic about their futures when economic conditions are unfavorable.

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It should be noted that the sample selected for this study was done so through

purposeful efforts and based on convenience; therefore, the study itself cannot be

generalized to the entire population of older and younger cohorts of the millennial

generation. However, it can serve as a basis for further work in uncovering student

awareness of retirement, retirement preparation, and their future expectation of college

choice. Also, researcher bias could have been a limitation of the study. The background of

the researcher shapes the interpretations of these findings. However, the researcher was

aware of this issue and took precautions to avoid prejudice, bias, preconceived notions,

and other research attitudinal contaminants.

Other limitations that were present were related to the sample participants having

only business-related majors. Also, the location would be a limitation, as well. This study

reflects the lived experience of the participant in the regions in which they live (Miami-

Dade County), which vary widely with demographic and socioeconomic factors.

Surrounding Millennial cohorts retirement confidence, financial literacy, retirement

planning, assets allocation, awareness of retirement issues, retirement preparedness, and

future expectations, saving, expenditure control, debt, social security system issues,

retirement expectations, and life expectancy.

Significance of the Study

The purpose of this study was to understand how Millennials (younger and older)

make sense of their lived experience regarding retirement awareness, preparation, and

future retirement expectations. While there were extensive quantitative studies that

addressed this topic, there were few qualitative studies on the process (The Insured

Retirement Institute, 2020). This study confirms that retirement has become more

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 132

complex over the past five decades, and younger and older millennial students may face

unforeseen challenges in the future. Retirement has changed, and more responsibility for

financial, social, and emotional preparation has been shifted from employers to future

retirees. This study shows that retirement is challenging for both cohorts because it

requires creating a vision about the future and developing a retirement identity.

Unfortunately, younger and older Millennial cohorts do not save much (or any} for

retirement. Individuals must spend time reflecting on what they would like to be and how

they plan to achieve financial success in retirement. Given the long period an individual

may be in retirement, more thought has to be given to finding lifestyle activities that are

fulfilling versus those that only consume time.

As tuition and fees continue to increase at both public and private institutions,

students' debt loads are rising along with them. Both cohorts of millennial students have

student debt. However, it appears they do not care much about it. They are confident that

after graduation, they will be to pay off their entire debt. Overall, students from both

cohorts will/may face some financial struggles when it comes to earning college degrees.

Unstable home lives, lower-quality high schools, and other frequent corollaries of low-

income neighborhoods present plenty of obstacles even before loan debt becomes an issue.

This study may trigger both the public and private sector's recognition of the scope

of the student loan debt crisis. A wide variety of policy solutions should be discussed;

federal law should require colleges to provide deeper and more transparent information

about the cost of attendance, the likelihood of loan debt, and the career prospects of

graduates, and that is an important step.

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 133

Another significance of this study is to address an apparent literature gap in

understanding retirement awareness and preparedness by millennials, and future

expectations through interpretative phenomenological analysis using narrative design.

Also, this study may provide a better understanding of the factors influencing Millennials'

retirement awareness and preparation and future retirement expectations.

Furthermore, this study can help to benchmark college students' retirement planning

awareness and preparedness and future expectations and then compare with literature

findings. This study can help to understand relevant factors and how they influence

Millennial students' awareness of retirement Issues, their retirement preparedness, and

future expectations.

This study provides insights that can help financial planners and educators, as well

as policymakers, understand the Millennials' current retirement situation. Additionally, the

results can help the Millennials engage in saving for their retirement. And, this study can

help to make sense of how participants in this context use information from their business

courses in their future retirement planning and to build (provide) a foundation for future

qualitative research. reach through social networks and family education.

Perhaps parents of students, and their college teachers and administrators will

recognize the significance of providing support, education, and direction to students

concerning not only their preparation for their career but also for their post-career lives.

Today's retirement landscape is vastly different from decades past. It would be advisable

to incorporate into future college curricula courses in retirement investment and saving.

These courses should be designed to deliver comprehensive and up-to-date information;

education and knowledge to help students properly prepare for, and maintain, a successful

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 134

retirement plan for their future. There are so many different and important decisions to

make when planning for retirement. Thus, proper courses in retirement and saving,

retirement knowledge and education are the key.

Future Research

Findings from this study suggest that further research should be done to understand

better the retirement preparation process and future retirement expectations as it relates to

younger and older Millennial students considering retirement in the 21st century. Further

study should be done to explore additional factors that may improve retirement savings

behavior, various planning activities, retirement investments, and well-being. Also, other

research should be done to explore how Millennials' work should be restructured to create

higher value for their or future employers and society. Such a study should continue to

examine the impact of a higher spectrum of demographics, differences, and relationships

in the retirement and pre-retirement process. Such research should consider how the

retirement preparedness process differs based on the wider variety of demographics

structures.

Also, a valuable follow-up to this study would be additional qualitatively oriented

research that focuses on retirement planning to examine the motivations and other factors

to explore in more detail retirement awareness, retirement issues, and future retirement

expectations of younger and older cohorts of Millennials students.

Also, the future study can include revisiting younger and older Millennial cohorts

in regards to the same socio-economic factors, retirement confidence, financial literacy,

retirement planning, assets allocation, awareness of retirement issues, retirement

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 135

preparedness, and future expectations, saving, expenditure control, debt, social security

system issues, retirement expectations, and life expectancy.

The current COVID-19 era poses a threat to many Americans' health and current

financial well-being, but it also has the potential to derail an individual's future retirement

security. The global pandemic may make it even harder for Millennials to prepare for

future retirement. Therefore, future research would be advisable regarding the current and

post COVID-19 era.

In addition to the processes just described and the constructs examined in this

study, economists and psychologists have suggested other reasons why people may make

wise financial decisions regarding retirement preparation.

Conclusion

The word retirement, when defined as the complete exit from the workforce, no

longer represents the goals and lifestyles of Millennials leaving full-time employment.

Retirement is now a process instead of an event. (In fact, semi-retirement is currently a

popular objective and descriptive term.) As a result, the subject requires careful

consideration beyond financial awareness and planning.

This research was an "eye-opener" concerning the younger and older millennial college

students' understanding of preparedness, awareness, and retirement future expectations.

Their experiences and stories reflect a disparity between retirement preparation and

retirement expectations. The gap between the two reflects, in this researcher's opinion, a

significant lack of willingness to sacrifice for a more secure advanced age experience. The

general themes identified have as an underlying foundation a belief that young workers

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 136

have plenty of time and minimize the importance of gathering a substantial amount of

practical information along with projections and preparation for the future.

At the beginning of this study, socio-economic, demographic, and legal changes were

mentioned along with the fact the U.S. government and most employers had already or

were in the process of shifting responsibility for retirement income from employers to

employees. This significant structural change presumed an educated workforce that is

knowledgeable about retirement planning, probabilities, available investments, life-

expectancy, forecasts, etc. The failure of the government, the unknown future of Social

Security, and private employers unwilling to provide a support structure, including

financial literacy education of those young workers, has produced a new retirement

reality- one of the insufficient resources and lowered living standards and expectations.

And, uncertainty about the future is also a growing threat to millennial retirement.

This generation has experienced both the 2008 "Great Recession" and the

emerging 2020 Global (COVID-19) Pandemic, either, or both of which could easily

disrupt or derail all but the best retirement plans. More research and education, and

perhaps new financial instruments, are warranted to assist Millennials, along with future

generations, to more successfully prepare for retirement, whatever that model will look

like in the future. Future financial models will need to be less linear, assess more potential

risks, provide greater flexibility, and a significantly increased "cushion" for unforeseen

events. All these factors should increase the urgency and underscore the necessity of

financial planning for Millennials and their successors.

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 137

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Appendices

Appendix I: Initial Interview Questions

Introduction: This study is titled: Millennial students’ awareness of retirement issues,

their retirement preparedness, and future expectations

The study purpose is: To identify the factors and level of retirement awareness and

preparedness of millennials

The Researcher: Krzysztof Bryniuk, doctoral candidate in the Doctor of Business

Administration program at George Fox University. The study will be submitted as part of

the dissertation requirements for that doctoral degree.

Date:______________

Site of Interview:_____________________________

#: _________________________

This interview schedule questions are being used to guide our interview and to show the

researcher’s interest in the experiences you will describe. We will each have a copy. You

may keep your copy and make notes on it for your own use. It may guide your thoughts

for diary entries you will make during this study. There is no right or wrong answer it is

just all about your experiences and your story.

1. General Background: Tell me about yourself and your background (sex,

race, and ethnicity):

• Where did you grow up?

• How long have you lived in Miami?

• What was it like growing up in your family? Who is in your family?

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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• Can you talk about early memories of shopping or conserving?

• What was your family like?

• What did your parent/s do for a living?

• Who were the key people in your life?

• Do you work? Did you have any jobs, how did you spend your income?

2. What Is Your Educational Background?

• Why did you choose that educational path?

• Who were the key individuals in your educational background? Parents/family

members, mentors, teachers.

• What is your major? Was that always your major?

• Did you take any course(s) that teach about retirement and retirement planning?

• What did you learn?

3. Occupation and Income:

• Describe your current or future occupation? Are you working, what are you plans

after graduation?

• Do you have an income? What is your desired income? What do you expect to earn after

finishing your education?

4. Financial Awareness and Preparation

Tell me about the first thing you thought about regarding retirement How do you imagine

your life in retirement, describe an average day.

• Why do you think this was the first thought?

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• Tell me about the first thing you talked about regarding retirement. With whom did

you discuss this with? Why? Have you ever discussed retirement with anyone,

what did they tell you?

• Have you started planning for retirement? (if yes) When do you think you started

planning for retirement? Why do you think it started at this point?

(If no) Will you plan for retirement? When do you think you will start planning for

retirement? Why?

• Tell me about your retirement planning process (actual planning that’s

happened…what you’ve done to plan) talk me through the actual process

• What types of financial planning have you done or thought about for later?

• What types of planning related to daily life changes (work, volunteering, hobbies,

extra time) have you done or thought about?

• Out of all of these broad areas (financial, relationships, daily life, timing, etc.),

what were your very first planning thoughts and actions?

• What do you think your next planning steps will be (financial, timing, relationship,

daily life)?

5. Savings, Assets, Expenditures, and Debt

• Do you know about Social Security retirement benefits?

• What are your estimated Social Security retirement benefits (if you do not know

them you can look up them online)?

• Do you think you can count on receiving Social Security retirement benefits?

• Have you started to save for your retirement?

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• Do you have savings in a 401k, IRA, or other retirement savings plans? If

• Yes, how much do you have in each account? If no, how much would you need?

• If you have a 401k, does your employer offer matching contributions?

• Have you been contributing up the maximum matching level?

• Do you know your average annual return on your savings plans?

• Have you switched jobs multiple times in your working years? Maybe how many

jobs have you held, describe them. Are there any employer sponsored retirement

plans you haven't consolidated with your current savings?

• Besides your retirement savings, what other assets do you have? This should

include the value of your home, other property, stocks, bonds, valuable jewelry,

etc.

• Do you like to shop? What do you like to buy? Let’s talk about your shopping

behavior, where do you shop, what types of things? Let me know about a recent

shopping experience.

• What are your major expenses?

• Do you think you are in control of your spending and money (elaborate)?

• Difficult to answer, perhaps do you plan your expenditures, do you sometimes

loose track

• Do you expect to inherit any significant assets in the near future?

• Will you be receiving a defined benefit pension through work?

• What are your current liabilities? Do you have outstanding student loans,

mortgages, or other debts?

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

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• Do you think your liabilities will have an impact on your future retirement?

6. Health and Longevity

• Does your family have a history of longevity (long life), certain diseases or other

factors that may impact your health as you age?

• Have you experienced any major medical issues?

• Do you have health insurance? Do you plan on using the same health plan in

retirement?

• If you're working, do you have disability insurance coverage through work?

• If you become disabled before retirement age, what percentage of your income

would this disability insurance replace?

• Do you have life insurance or long-term care insurance?

7. Future Retirement Expectations:

• Would you be able to describe your personal future expenses (clothing,

transportation, utilities, household, gifts, vacations, food, and miscellaneous)?

• Do you think your children will have to support you during the retirement? How

will you support yourself or your future family?

• Are you going to support your children during your retirement?

• How are you planning to pay for health and/or long-term healthcare? Do you have

a plan?

• Would you be able to describe major anticipated expenses during your retirement?

• When do you want to retire? Do you think you will have an idea of timing in the

future (at what age)?

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• What are your expectations about retirement? Please provide some examples.

• What influences your suggested timing for retirement?

• How would you like to spend your time in retirement (in general)?

• What influences your suggested activities after retirement? (How do you imagine

them – then tell me a story about a given day…your retirement? What sort of

activities do you see occupying most of your time?

• Where do you want to spend your retirement? For example, do you want to retire

in your current home and city, in a retirement community, a new city, etc.? Or do

you want to travel?

• Any other questions or comments?

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Appendix II: Consent Form

Consent Form

Date: ___________

Student: ___________

Consent Form: Millennial students’ awareness of retirement issues, their retirement

preparedness, and future expectations; George Fox University (College of Business)

You are invited to participate in an interview on: Millennial students’ awareness of

retirement issues, their retirement preparedness, and future expectations. This is a

research project/ interviews being conducted by Krzysztof Bryniuk, a doctoral student at

George Fox University located at 414 N Meridian St, Newberg, OR 97132. It should take

approximately 1-2 hours to complete.

PARTICIPATION

Your participation in this interview/research is voluntary. You may refuse to take part in

the research or exit the interview at any time without penalty. You are free to decline to

answer any question you do not wish to answer for any reason. Feel free to ask any

additional questions, there is no right or wrong answer. All questions are open-ended

questions.

BENEFITS

You will receive no direct benefits from participating in this research study. However,

your responses may help us learn more about Millennial students’ awareness of

retirement issues, their retirement preparedness, and future expectations.

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 160

RISKS

There are no foreseeable risks involved in participating in this study other than those

encountered in day-to-day life or there is the risk that you may find some of the questions

to be sensitive. There is also the risk that some questions may cause emotional discomfort.

Some of the interview questions ask about income, retirement preparedness, savings and

may be distressing to you as you think about your experiences. The possible risks or

discomforts of the study are minimal. You may feel a little uncomfortable answering

personal and sensitive interview questions. Despite this possibility, the risks to your

physical, emotional, social, professional, or financial well-being are considered to be 'less

than minimal'.

CONFIDENTIALITY

Your interview answers will be secure electronically and entire interview will be stored in

a password protected electronic format in my computer. This interview does not collect

identifying information such as your name (your name will be changed), email address, or

address. Therefore, your responses will remain anonymous. No one will be able to identify

you or your answers, and no one will know whether or not you participated in the study/

interviews. No names or identifying information would be included in any publications or

presentations based on your answers, and your responses will remain confidential.

CONTACT

If you have questions at any time about the study or the procedures, you may contact my

research supervisor, Professor Justine High Ph.D., Chair/Director Doctor of Business

Administration Program at George Fox University, College of Business. Address : 414

North Meridian Street Newberg, OR 97132, phone 503-554-

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 161

2814 [email protected]

If you feel you have not been treated according to the descriptions in this form, or that

your rights as a participant in research have not been honored during the course of this

project, or you have any questions, concerns, or complaints that you wish to address to

someone other than the investigator, you may contact the HUMAN SUBJECTS REVIEW

COMMITTEE at George Fox University; 414 North Meridian Street Newberg, OR 97132,

or email [email protected]

CONSENT: Please select your choice below. You may request a copy of this consent form

for your records. Selecting on the “Agree” indicates that:

• You have read the above information,

• You voluntarily agree to participate,

• You are 18 years of age or older.

¨ Agree ¨ Disagree

Name:………………………………………………………

Signature:…………………………………………………...

Date:…./.…./2019

Print Name of Investigator: KRZYSZTOF BRYNIUK

Signature of Investigator:……………………… Date:.../…../2019

If you have any additional questions about this form or survey, please contact me at

[email protected]

MILLENNIAL STUDENTS’ AWARENESS OF RETIREMENT ISSUES, THEIR

RETIREMENT PREPAREDNESS AND FUTURE EXPECTATION 162

Appendix III: Template Analysis Checklist

Date

Complete

Comments

Preliminary Review of the

Interview Data

Data Coding

Organization of Themes

and Relationships

Coding Template

Modification

Findings