Why Millennials Are the Best Savers (2024)

FAQs

Are millennials better savers? ›

Millennials may be saddled with student loans and missing out on the pensions earlier generations enjoyed, but they're actually saving more for retirement than boomers, according to a new study from Vanguard.

The youngest generation in the workforce has saved almost three times the amount Gen X households had saved in defined contribution plans at the same age, according to ICI data.

This generation, however, is also known for being adaptable. Indeed, they are considered the first digital generation, quickly acclimating to new technologies, including smartphones, social media, and streaming entertainment. They are the generation that has received the most formal education.

About 38% of early millennials, those born in the 1980s, will have “inadequate” retirement income at age 70, according to projections from a 2022 Urban Institute study.

The Silent Generation are frugal and conservative, valuing saving over spending. Baby boomers are willing to spend on leisure and luxury items without worrying about sustainability.

According to the study, the average millennial has 30% less wealth at the age of 35 than baby boomers did at the same age. Yet the top 10% of millennials have 20% more wealth than the top baby boomers at the same age.

Millennials value community, family, creativity, and innovation in their work. Millennials are most effective at switching tasks quickly and appear to be doing them simultaneously. Millennials are the most racially diverse generation and are more tolerant and understanding of different races.

Millennials embody a set of evolving values and aspirations that greatly influence their choices and behaviors. This generation highly values authority, achievement, and influence, demonstrating a strong desire for control, success, and recognition.

How many Americans have $100,000 in savings? About 26% of U.S. households had more than $100,000 in savings in retirement accounts as of 2022, according to USAFacts, a nonprofit organization that analyzes data from the Federal Reserve and other government agencies.

Is $100,000 in retirement at 30 good? ›

“By the time you're 40, you should have three times your annual salary saved. Based on the median income for Americans in this age bracket, $100K between 25-30 years old is pretty good; but you would need to increase your savings to reach your age 40 benchmark.”

“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.

As one of the most philanthropic generations, Baby Boomers have had a considerable impact on the charitable sector. Having lived through significant historical events, many Boomers feel a sense of responsibility to give back to society.

Wealthiest Generation: Baby Boomers

According to the Federal Reserve data, baby boomers – people born between the 1946 and 1964– win the top spot for the wealthiest generation in the U.S. In aggregate, their total net worth is $78.55 trillion.

Millennials are loyal despite economic realities

Yet they still planned to spend the most in the 2023 holiday season, they shop the most online, and they stick around - 60% of millennials say they've been with a brand for over 10 years according to a survey by Inmoment.

Gen Zers feel "financially vulnerable," per the report, with economic circ*mstances forcing many to live paycheck to paycheck. Less than one-third of the generation said they are in good financial condition. US inflation rates are double what they were 10 years ago, according to the Bureau of Labor Statistics.