What Millennials Are Doing Right—and Wrong—About Retirement
Millennials may be overly confident about their investing skills, but many are handling their 401(k)s with savvy, a new study (pdf) by Wells Fargo Institutional Retirement & Trust suggests.
More than a quarter of younger workers—28 percent—have at least 10 percent deducted from their paychecks, according to the study. It analyzed the behavior of 4 million employees in the plans the company administers, from 2011 to 2016. Among the older generations, 35 percent of Gen X-ers and 44 percent of boomers were at the 10 percent contribution mark.
Boomers get their own shout-out. If you assume they are the ones earning $100,000 or more, which they likely are, they are the "most improved" group over the study's five years among those who contribute at least 10 percent. There was a 15.3 percent increase among those making $100,000 or more hitting the 10 percent rate. At the same time, there is a lost opportunity for boomers. Just 7.7 percent of participants 50 and older make the additional $6,000 "catch-up contributions" allowed by the IRS.
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