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.