Gen X and Gen Y super savers are saving big for retirement, according to new research from
Super savers are highly motivated by wanting to feel financially secure (62%), having a good lifestyle in retirement (57%), being prepared for the unexpected (43%), and wanting to save enough for retirement (42%) and travel in retirement (42%). This year, less savers reported having the income to save was a driver of their habits (39% compared to 59%/1.)
In order to reach their lofty savings goals, super savers make sacrifices such as driving older vehicles (43%), owning a modest home (41%), not traveling as much as they'd prefer (41%), and doing DIY projects instead of hiring outside help (40%). Taking on DIY projects increased drastically, up from 30% in 2018.
Super savers aren't all work and no play. They still splurge on subscription services (46%), travel (46%), dining out (39%), entertainment (30%), and shopping (26%).
"Super savers are making smart financial choices, but they aren't sacrificing their quality of life," said
The concept of young Americans saving big might sound foreign, but the growing FIRE (Financial Independence Retire Early) movement has been a rallying cry for young people. Seeking financial freedom, some of these young savers can bank 70% of their take-home income into savings.
The role of family
By and large, super savers list their parents as their top influence on their savings habits (34%). Eight in 10 said their parents were or are savers, and a third (35%) said their parents created savings rules for them to follow when they were children.
Perhaps one of the reasons super savers turn to their parents is a lack of personal finance education in schools. Eighty-one percent said they learned little to nothing about personal finance in school, but 98% agreed that students should learn about it before graduating high school.
"What these super savers have figured out, and what we want more people to realize, is the value of saving more, earlier," added Patterson.
Confidence in saving
Though everyone surveyed fit the definition of a super saver, only 24% self-identified as a such. Of those who thought they were a super saver, 28% were men, compared to only 19% of women. Men were also much more likely to be confident in their financial future (59%) compared to women (49%) and be confident in financial decision making (52% vs. 40%.)
"We know that education drives confidence, and confidence drives action," added Patterson. "Even investing a small amount of time learning more about personal finance can have a huge boost to confidence."
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1/ There was a methodology change in 2019 to the