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Millennials Are Winning at Saving for Retirement

And 24% of those with savings have $100K saved already
By Evann Gastaldo,  Newser Staff
Posted Jan 30, 2020 2:34 PM CST
Stock photo.   (Getty Images / choness)

(Newser) – Among those of their generation saving for retirement, baby boomers started saving, on average, at age 33. For Generation Xers, it was age 30. For millennials? Age 24, according to a new Bank of America survey cited by USA Today. Nearly 3 out of 4 millennials, who are between the ages of 24 and 41, are actively saving money, and of those, 75% are saving for retirement. Of that 73% of millennials with any type of savings, 24% have $100,000 or more saved. That's despite the fact that the younger generation—which, funnily enough, often faces scorn for how its members manage money—is not necessarily feeling confident about money. More than half of those surveyed say they feel behind financially, and more than 75% of them are facing debt—not counting mortgages, 16% have $50,000 or more in debt.

But the survey has quite a few bright spots as well. Over the prior year, 24% had saved more money for retirement, 29% had gotten a raise at work, and 39% had improved their credit score. More than half regularly track their expenses and nearly half pay off their credit cards each month, CNN reports. More than half of the millennials who had savings said they were building an emergency fund, and a third of those with savings said they were working toward homeownership. That last number got higher when looking at younger millennials, 40% of whom said they were saving up to buy a home. And a whopping 82% of single millennials said they would rather put a down payment on a home than spend money on a fancy wedding. Even so, the top two financial stressors named were not saving enough (44%) and planning for retirement (38%). See the full report here. (Read more money management stories.)

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