One in five millennials is already doing it—and anyone with a job is in a position to take the crucial step.
Millions of millennials have heard the message: Saving early and often is the key to long-term financial security. Nearly one in five saves 15% or more of every paycheck in a 401(k) plan, new research shows, which puts them on track to building $1 million retirement portfolios.
This finding should not take anyone by surprise. Millennials may be quirky, disinterested in a traditional career or formal marriage, and even annoyingly self-entitled. But they were at an impressionable age during the financial crisis and many took its lessons to heart. For a large segment, saving is part of their psyche—similar to their grandparents who came of age during the Great Depression.
Among older generations, a greater percentage save 15% or more, according to Fidelity Investments. Some 29% of Gen X-ers, for example, are socking away 15% or more. (This data comes from Fidelity’s analysis of savings habits the 13 million 401(k) investors in the plans it administers.) But older Americans have higher incomes and less time to save. The urgency is particularly acute among boomers, who have beefed up savings late in the game.
Link to complete article:
http://time.com/money/collection-post/4031...
Posted By: Chinwe Okafor
Saturday, December 23rd 2017 at 7:20AM
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