Currently, in Chile, 1 in 3 people are considered millennials, that is, people who were born since the beginning of the 80s, until the end of the 90s.

In addition, it is expected that by 2020 they will occupy 50% of the labor force and by 2025 they will reach 75%, as indicated in the book “Generacion Y a la Chilena”.

Due to the importance that this generation is having, this blog will tell you some of the reasons why millennials’ pensions will be lower.

As explained by Susana Caceres, one of the authors of the book Generacion Y a la Chilena, in an interview with Third newspaper, this age group is one of the generations most cared for by their parents and is entering fully into the workplace, taking leadership, with dreams very different from those of their parents or older collaborators in the companies in which they work.

In fact, according to a study published by the analytics firm SurveyMonkey, millennials spend more on a daily cup of coffee than investing for retirement.

This generation is also known as “Y” is changing different industries and everything indicates that it will also impact the retirement system.

Here are some of the main reasons why the “Generation Y” pension will be lower:

Most do not generate interest with their savings

According to a study by the market research institute GfK SE for, it indicates that Generacion Y is the least worried about generating extra income thanks to investments that generate interest, such as investing in stocks or riskier funds.

In fact, 1 in 3 people belonging to the millennial generation prefers to put their money in savings accounts or time deposits.

All this translates into less projection for the future since this generation prefers to have money in cash or instantly than to have great savings for the future of their retirement.

Lower salaries

The Organization for Economic Cooperation and Development (OECD), made a study that reveals that generation Y is the most difficult to be middle class.

As reported by CNN, the report indicates that the new generations are costing much more power to buy a home and this means that they allocate a smaller amount of money for retirement funds.

In fact, the budget for families to buy a house was 25% in 1985, versus 32% in 2015.

Greater life expectancy

 According to the World Bank, the life expectancy curve has not stopped rising since 1960 and it is expected that by 2030 it will surpass 90 years.

That is why many insurers that offer life annuity have had to readjust their amounts due to a large number of years that people live and it would not be strange that a large part of the millennials overcome the barrier of 90 years, even many become more long-lived

Several experts point out that a readjustment of retirement age should be made since 1981, understanding that most people will exceed 90 years of age and the insurer would have to at least provide pensions for more than 25 years in case of retirement. Men and more than 30 in that of women.

Other priorities

The millennials generation stands out for having other priorities in their life. According to a Bank of America study, young people belonging to these ages care about saving to live their own way, investing in travel and fun, mainly.


 The baby boomers, that is to say, the generation that was born in 1946 and 1964, are considered the ones that have managed to generate wealth in terms of housing and assets and it is expected that in the future these will be passed on to future generations.

Although the retirement landscape for millennials does not look so encouraging, there are multiple ways to increase your retirement if you belong to this group.


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