Millennials: The Next Wave of Super Savers

Posted

They’re lazy, self-centered, unrealistic—and more prudent than their parents and grandparents ever were when it comes to retirement.

According to new data from the Transamerica Center for Retirement Studies, Millennials are saving more and saving earlier for retirement than members of Generation X and the Baby Boomers.

The median age at which Millennials (born between 1979 and 1996) start saving for retirement is 22, compared to 27 for Generation X (born between 1965 and 1978) and 35 for Baby Boomers (born between 1946 and 1964). 71% of Millennials participate in their employer’s 401(k) plan, contributing about 8% of their annual salary into their plans. Generation X, on the other hand, allocates around 7% of their income to retirement savings, while Baby Boomers contribute 10%.

For Millennials, the ability to prepare for retirement is so meaningful that 67% say they would be willing to switch to a comparable job that offered better retirement benefits, compared with 52% of all age groups.

“[Millennials have] heard and responded to the message they need to start early and save as much as possible,” said Catherine Collinson, president of the Transamerica Center, said in a statement.

Yet as eager as Millennials are to secure their financial future, most admit they aren’t yet retirement-savings experts. More than half say they want saving and investing to be made easier to understand, and nearly three-quarters wish their employers would provide more comprehensive instructions on planning for retirement.

If you’re one of the young ‘uns who have already begun prepping for your golden years, kudos to you—the earlier you start saving for retirement, the more money you’ll accrue. Having a hard time getting into the saving mindset? Try some of these mind tricks, like visualizing your fabulous future lifestyle.

  • iwanttovoteforobama

    Well, thank you lousy baby boomers for your spend-till-you-drop life styles and lack of any fiscal discipline at the personal or national level. You guys got the ball rolling and created this culture of fiscal indifference and ignorance since “in the long term, we’re all dead” so who cares about the future generations. We’ll borrow and borrow and borrow like theirs no tommorow. Now we’ll have to clean up your mess. Thanks.

    • Karen

      An ignorant comment from a low information voter. You want to talk about spending and debt robbing future generations talk to your Obama there kid! Boomers did not cause the current financial fiasco our country is in, Obama did and that happened in the last 6 years!

      • Laura

        Obama is a baby boomer. He was born in 1961. He shares the blame for the current situation ALONG WITH the past couple of administrations – Bush, Clinton, Reagan. As well as the voters who elected them into office. I’m so sick of this “blame everything on Obama crap”.

      • iwanttovoteforobama

        Karen, low information voter? That must be you… while Obama (another idiot) increased the debt by around $7 trillion, it was already at $10 trillion by the time he took office. So nice try. Maybe you should go and get yourself educated a bit. Thanks to all the stupid socialist welfare programs the boomers loved that they kept on expanding and expanding.