A full 45% of millennials have a retirement savings account, such as a 401(k) or IRA, and 33% are actively contributing to it, according to the survey. Exactly half of Gen Xers have a retirement account and 36% are actively contributing — just 3% more than the succeeding generation.
Also asked, how much do Millennials need to save for retirement?
Those earning a median income will need to save 4% to 9% pretax. Those earning an income in the affluent category will need to save between 9% and 14% pretax. Those who are considered high net worth will need to save between 14% and 18% pretax.
One may also ask, how much money do most Millennials have in their savings? And the typical millennial has less than $5,000 in their savings account. A survey by Insider and Morning Consult found that while 70% of millennials have a savings account, 58% have a balance under $5,000.
will Millennials ever retire?
Millennials are determined to retire early. Rowe Price survey, 43 percent of millennials expect to retire before the age of 65, while a Bankrate survey found that millennials cited age 61 as the ideal age to bid adieu to their careers. 43 percent of millennials expect to retire before the age of 65.
How much do Millennials have saved?
Baby Boomers have saved $152,000 in total household retirement savings, Generation X has saved $66,000 and Millennials have saved $23,00, according to the study. Those amounts fall far short of recommendations from financial advisors that you should save at least 10% of your lifetime earnings for retirement.