Millennials Are Better Prepared For Retirement Than Boomers

J.D. Power study find surprising retirement savings results

Retirement Savings
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PITTSBURGH (NewsRadio 1020 KDKA) – In spite of all the avocado toast, it turns out Millennials are better prepared for retirement than their parents according to a study by J.D. Power.

The surprising findings came from J.D. Power’s annual Group Retirement Satisfaction Study that evaluates participant satisfaction with providers of group retirement plans like 401(k)s.

Millennials are the demographic group most likely to have set retirement goals and the highest savings relative to age.

And the Boomers? The study found they aren’t as prepared as they should be.

Mike Foy is J.D. Power’s senior director of wealth management practice. He told the KDKA Radio Afternoon News the Millennials’ secret is starting early.

“More [Millennials] are really getting out ahead of planning for their retirement,” Foy said. “And obviously they’ve got a whole lot more opportunity to grow those retirement assets.”

Nearly two-thirds of Millennials have $25,000 in total retirement savings and almost a third has more than $100,000 with an average of 30-35 years before retirement. 75 percent of Boomers have more than $100,000 with an average of three years before retirement.

That means a majority of Boomers will retire with less than four years of current income saved, less than half of the recommended 10 years.

“It’s all about time in the market and benefitting form that compound interest that accumulates over a long period of time,” Foy said. “And it becomes harder obviously has you get closer to retirement age to play catch up.”