Apple FCU Survey: 70 Percent of Millennials and 34 Percent of Baby Boomers in NoVa Not Saving Enough for Retirement
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"We surveyed members all over
Here are the top findings: Saving-More than 90 percent of Baby Boomers say they are saving for retirement, as compared to slightly more than 60 percent of Millennials. With retirement much more eminent for the Boomers, this is not surprising. An interesting finding is that both groups reported putting away between 5-10 percent of their annual income.
But not everyone is saving for the same things. Of the Boomers who say they are not saving for retirement, the majority are instead saving for travel, compared to Millennials who say they are saving for a house or other things like emergencies, student loans or other debt.
"What is concerning is that 34 percent of Boomers say they do not believe they are saving enough to reach their goals," says Callan. "Retirement does not need to be a guessing game. Determining how much to save and developing a plan is important; and it's not too late for Boomers." Sacrifices to Save-Sixty percent of Boomers say they have made sacrifices in order to put more money away for retirement, while only 48 percent of Millennials say they have sacrificed to save money. The top sacrifices for both groups are shopping sales, eating in, and vacationing inexpensively or at home. Type of Saving-As for the type of savings, these two groups are actually in sync. More than half of Boomers (55 percent) said they used their employer's retirement plan, while just under half (47 percent) of Millennials said they enrolled in such a plan. Of those who said their employer offered a 401K match, half of Boomers and Millennials say they contributed enough to their employer's 401K to earn a match. "This is free money," says Callan. "Everyone should be maxing out their employer match if it is offered. Otherwise they are leaving money on the table."
Of the Boomers who are saving, their favorite investment vehicles are mutual funds (72 percent), stocks (52 percent) and bonds (30 percent). These vehicles are favorites among Millennials as well. "Millennials can afford to be more aggressive as they have a longer time before retirement," explains Callan. "They should consider investing a larger percent of their portfolios into large cap mutual funds and stocks, which typically yield a bigger return, but should also be aware that they could lose value."
Something that is viewed differently through the lens of the two generations is
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