In Contrast to Boomers, Millenials Are “Super Savers”
When Keith Farner was 14, he made $2,000 at a summer job. Instead
of buying the XBox he'd been wanting, his parents helped him open a Roth IRA.
The 30-year-old, who lives in Athens, Ga., now has more than $30,000 saved.
While Farner may have gotten an earlier start on retirement than most, a new
study from Merrill Edge shows that Gen Y, defined by the study as those 18-34,
is starting to save for retirement earlier than any other generation. Many are
investing by age 22, compared with Baby Boomers who started on average at age
35. Abe Mulvihill had two retirement accounts by the time he was 21, opened
during a summer internship with a mutual fund company that offered him accounts
with no fees. Now the 27-year-old also invests in a 401(k) through work and has
more than $10,000 saved total. "If you look at how money can grow and you
reinvest all your dividends and that compounds, it makes complete sense,"
Mulvihill says. The Merrill Edge study of mass-affluent Millennials — those
with $50,000 to $250,000 in assets — shows that on average the age group has
$55,000 saved for retirement, which Merrill Edge Director Alok Prasad calls
Source/more: USA TodayTags: baby boomers, Retirement