If you are worried about your children's financial prospects, get in line.
Just 1 in 8 Americans believe the next generation will be more financially secure than they are, and only 1 in 5 think they will have a better quality of life, according to a new survey commissioned by Haven Life, an online term insurance provider. A small majority also expect the next generation to have less disposable income. (Tweet this)
"There are certain economic realities that a lot of parents are facing in terms of difficulty making ends meet and struggling with their own financial challenges," said Yaron Ben-Zvi, co–founder and CEO of Haven Life, which is owned by MassMutual. "A lot of it is taking their own experience and projecting it forward and thinking their kids are going to be struggling with some of the same issues."
The online survey of 1,124 adults was conducted during the first quarter of 2015.
The respondents have reason to be pessimistic. Census Bureau data show that median earnings for workers ages 18 to 34 rose between 1980 and 2000 to a high of $37,355, but for the period 2009-2013, they dropped to $33,883. (Tweet this) The figures were in 2013 dollars.
Rising levels of student debt are also weighing on the next generation. Between 2000-2001 and 2012-2013, the average amount of a student loan for any kind of postsecondary institution increased 39 percent in 2012-2013 dollars, to $7,000, according to the National Center for Education Statistics.