New Economic Realities for Today’s Young Couples

For today’s young couples, the road to the future may look far different than it did for their parents. Their incomes may be less certain compared to those of previous generations, and the demands on their financial resources may be greater. In addition, rapidly evolving technology may require multiple career changes or transitions. Moreover, many employers no longer offer traditional defined benefit pension plans. Instead, employees must rely on their own savings to fund their retirement.

Meeting the Challenge
What should young couples do? As they begin to pursue their dreams, many couples encounter the uncertainty facing many young couples. Although their jobs are presently secure, many of their friends and relatives work for companies that are struggling, leaving them less certain about their professional futures. Since they will be depending on two incomes to support their family, how will they manage if one of them loses his or her job? And will their standard of living be affected if each one undergoes a number of career transitions?

The possibility of an uncertain income stream raises additional questions. Will the couple be able to afford the number of children they want? Once they have started a family, will they be able to save for their children’s education? Will they have adequate financial resources should either of them become sick or sustain a disability? What about their retirement? Although they both participate in 401(k) plans at work, will they be able to save enough to meet their future needs?

A Realistic Assessment Today = A Brighter Tomorrow
A realistic assessment of their goals and the economic climate can allow them to develop valuable courses of action. If they start now, while they are still young, they may have more flexibility in their spending choices and in determining the sacrifices they may need to make to meet both their current and long-term goals.