Millennials are saving twice as much as baby boomers — and they could be on track to retire richer than their parents
Millennials are really good at saving money — especially if they have kids.
In fact, US millennial parents are on track to be richer in retirement than the typical Gen-Xer or baby boomer with kids.
That’s according to a new NerdWallet study, which found employed millennial parents (aged 18 to 34) are contributing a median of 10% of their income to retirement savings.
Generation X (aged 35 to 54) is saving 8% of their income and working baby boomers (55 and older) are socking away just 5%.
The study is based on a survey of more than 2,000 American adults, including 1,112 parents and 874 non-parents. Despite the added expense of a child, 84% of parents surveyed said they are contributing to retirement savings, compared to 69% of non-parents.
Still, among all parents, millennials are saving a greater percentage of their income. According to the report, over one-third of millennials are saving at least 15% of their income.