Millennials Are Better Prepared for Retirement Than Baby Boomers
The stereotype of millennials as the generation that prefers pricey avocado toast with kombucha to hard work and saving may have to be revised following a recent report from J.D. Power. Turns out millennials are better prepared for retirement than their parents, the company found.
Out of all demographics, millennials are the most likely to have set specific goals for retirement and have the highest level of savings relative to their age in group retirement plans, according to a press release from J.D. Power. While only 44% of baby boomers and Generation X members have set specific retirement goals, 51% of millennials have done so, according to a survey of more than 9,500 group retirement plan members conducted by J.D. Power in February and March. What’s more, among millennials who have set goals, 83% are sure they’re on track to attain them, J.D. Power found.
And many of them are well on their way -- in some cases further than the baby boomers. Sixty-one percent of millennials have at least $25,000 in retirement savings while 27% have saved more than $100,000 already —and that’s with an average of 30 to 35 years left before they retire, J.D. Power writes.
Among baby boomers, 75% have saved more than $100,000, but that’s with an average of just three years before they retire, the survey found. The average baby boomer will have just 3.4 years of income saved by the time they reach 65, while some experts suggest they should have 10 years of income saved by that time, according to J.D. Power.