Are Millennials saving enough for retirement? Answering that question posed by a headline in an interesting reuters.com story, Bobbi Rebell writes that “another Millennial myth may be biting the dust. Apparently, Millennials have better retirement saving habits than Baby Boomers.” Other excerpts from the piece:
“Millennials save 8 percent of their paycheck for retirement, according to a recent survey from T. Rowe Price. Baby boomers are just slightly ahead at 9 percent.
“Indeed, Millennials track expenses more carefully than boomers (75 percent vs. 64 percent). And 67 percent of Millennials stick to a budget. That’s better than the 55 percent of boomers. Meanwhile, 88 percent of Millennials say they are pretty good at living within their means.
“To be fair, the boomers are saving a higher percentage of their salary for retirement than Millennials, but twice as many Millennials have upped their retirement savings in the last 12 months, T. Rowe Price says.
“The retirement data says a lot about the mindset of Millennials. Many baby boomers started their careers with defined-benefit pension plans. That’s not even a phrase Millennials have heard before.
“Plenty of Millennials expect Social Security to go bankrupt before they retire. They know they are on their own for retirement. And while, on average, they are not saving as much as allowed by law, the data suggest that as their ability to do so improves, they will take full advantage of corporate matching plans in their jobs.”