Number of Millennials Investing in Their Retirement Savings Has Increased by More Than 70 Percent Since 2012
According to the report, all age groups whose employers offer company retirement accounts have shown an increase in retirement savings since 2012, with millennials making the most significant changes in how much of their income they stash away.
Specifically, the following patterns were found in millennials' retirement savings behavior:
- In 2012, 17 percent of millennials with company-offered retirement benefits contributed to their company-sponsored retirement savings. By 2015, that number rose to 29 percent.
- Retirement savings plans that offered company matching saw increased participation rates across all age groups. In 2015, 42 percent of millennials participated in retirement plans with company matching, whereas only 23 percent participated in retirement savings without matching.
- Retirement savings plans with company matching have participation rates that are 72% higher than plans without company matching.
- In 2015, millennials contributed 3 percent of their income toward retirement savings accounts, while Xers and Boomers contributed 4 percent of the income.
- Whether or not companies matched their retirement savings, millennials' investments stayed steady in the range of
\\$2,000 to \\$3,000 annually for each year between 2012 through 2015.
The report also found that, for all age groups, married people contributed significantly more to their retirement savings. In 2015, 50 percent of married individuals participated, while 32 percent of single individuals participated. Married individuals also saved more of their money -- 4 percent, as opposed to 3 percent for single people.
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1 As of
2 Millennials are considered to be employees born between 1980 and 1995.
Generation Xers are considered to be employees born between 1966 and 1979.
Baby Boomers are considered to be employees born between 1950 and 1965.
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