Millennials Save for Retirement Years Earlier Than Boomers — Because They Have To
Millennials took one look at their financial future and, early on, realized it was bleak.
The YOLO generation started saving for retirement — stuffing away money in 401(k)-type accounts — nine years earlier than their baby boomer parents did, according to a new study.
Charles Schwab Corp.’s “Retirement Reimagined” study points to the lack of pension plans, through which companies would take care of workers through their retirement, as one factor pushing millennials to start saving for retirement on their own.
Millennials, worse-off financially than their parents in many ways, also are less likely to own homes, a source in itself of retirement funding for boomers.
Despite their efforts to put money aside early, many millennials worry that they won't actually be able to retire, and their view of what retirement means is also much different than boomers.
“Millennial retirees will spend 24% less time on financial matters than boomers, using their savings to pursue their desired lifestyle and passions,” according to the report, which surveyed 5,000 Americans and used predictive analytics to anticipate retirement outcomes and attitudes by generation.
Recently, millennials say they’ve taken a pause in putting money aside. Nearly half of 18- to 35-year-olds are waiting “until things return to normal,” according to a survey done earlier this year by Fidelity Investments.