The Millennial Generation is Saving for Retirement in a Big Way
Published on November 7, 2017
As reported in a recent Nerd Wallet study, it turns out that younger millennial Americans are actually saving money for retirement and are doing better than older generations in that regard.
The study found that employed millennial parents between the ages of 18 and 34 are contributing a median of 10 percent of their income to retirement savings. The Generation X group is saving slightly less (8 percent) and working baby boomers are lagging behind with only 5 percent of their income being saved.
Parents among this group also came out ahead compared with older parents; millennials with children were shown to be saving a higher percentage of their income—over 15 percent of income saved for one-third of millennial parents. Overall, 84 percent of the parents surveyed said they are contributing to retirement savings. Non-parents came in at 69 percent.
These statistics are very insightful, considering millennials are an age group typically thought to be dealing with student debt, trying to buy a first home or paying off other debts. It appears they are taking the “save early, save often” advice very seriously. The good news about that—aside from steadily amassing a healthy retirement nest egg—is that they have the momentum to keep going on that savings track.
How exactly are these younger workers sticking to their savings goals? The study revealed that “millennial parents are most likely to report having made sacrifices to increase their savings, including cutting back in big spending areas such as dining out, vacations, and entertainment.”
One way for these millennials to diversify their retirement savings is by investing in alternative assets through a self-directed retirement plan. The types of nontraditional investments these plans allow are wide-ranging and—for individuals who are comfortable making their own investment decisions—self-direction can help turbocharge their momentum toward that retirement savings goal.
Starting to save early and often is an empowering and powerful way to build a more financially comfortable future. That said, people at any age can put more power into their retirement plan by diversifying their portfolio with nontraditional investments allowed in self-directed retirement plans.
Are you among the millennials who are saving for retirement? Do you want to know more about alternative assets? Contact the professionals at Next Generation Trust Company with your questions at Info@NextGenerationTrust.com or 1-888-857-8058. You can also read more about this retirement wealth-building strategy in our whitepapers. And keep up the good work!
*The study is based on a survey of more than 2,000 American adults, including 1,112 parents and 874 non-parents.Back to Blog