Millennials are dealing with lots of challenges brought by everyday life such as financial challenges. Based on a recent Schwab poll, 38% of 1,000 millennial respondents who own 401(k) said they are primarily concerned about not saving enough for retirement. That thinking is quite surprising because they have more time to generate more income and recover from losses than the previous generations. It can be attributed to many factors, including lower paycheck and student debt.

Lower Salary

Unlike baby boomers and gen Xers, millennial workers have lower paychecks, which have been stagnating for the last three decades. Data by the Institute for Women’s Policy Research stated the normal annual income of a male millennial and female millennial is about $35,000 and $30,000, respectively.

A Wells Fargo study mentioned 54% of millennial women and 43% of millennial men live from salary to salary. The same study said 64% of them feel they cannot save one million dollars for retirement.

Let’s say Dan takes home $2,917 per month. He rents a one-bedroom apartment for $1,120. Also, he has a student loan of $28,950 with 4.25% interest rate. Factor all the figures and he has $1,497 / month. But it does not end here. Dan sets aside $400 for groceries, $200 for transportation, $250 for utility bills, and $200 for credit card payments. Now, what is left of him? Almost nothing.

Credit Card + Student Loan

Credit cards are one of their main hurdles for saving for retirement. Based on Employee Financial Wellness Survey by PwC, 79% of millennial employees bear a considerable balance on their "plastic money", while 40% of them experience hardships in paying on time.

Millennials are also grappling with mounting student loan debt. Data by the Federal Reserve shows the total debt has reached the $1.2 trillion mark. Also, an estimate by the Institute for College Access and Success says seven in 10 (or 69%) who graduated from nonprofit and public colleges in 2014 still owe student loans, averaging $28,950 per person. The same projection implies 79% of respondents consider such debts as a key obstacle to attaining their financial objectives.

Despite aforementioned information, millennials still prepare for retirement as they still manage to stash some money for it. A Millennials and Money poll by TD Ameritrade revealed 72% of young professionals already prepare for expenses relative to their golden years, while 73% prefer saving over spending.