Young people are saving more for retirement than Boomers and Generation X — and this is why
Young people are saving more than previous generations, according to a study, flipping the historical trend that saw older savers put the most money aside towards retirement.
This was the stunning finding of a global survey of more than 25,000 investors across 32 countries, by asset manager Schroders.
The study revealed those aged between 18 and 37 – Generation Z and millennials, though the study groups them all as millennials – are saving nearly 16% of their annual income away for retirement, including employer contributions.
Meanwhile, those aged 38-70, incorporating Generation X and baby boomers, were putting aside around 14-15% of their earnings.
Younger investors were also the most likely to be convinced to increase their savings amounts (97%), compared to just 82% of those aged 51-70. This was despite the fact that young people presented equal or even slightly higher levels of impulsivity to older generations, when it came to the temptation for spending on a treat.
However, Gen Zers and millennials showed higher levels of anxiety when thinking about how to save, with 12% saying these worries led them to putting off thinking or doing anything about saving. This stood at between 7-10% for older generations.
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