BEACON TRANSCRIPT – Although the younger generation is often criticized for not being responsible enough, it looks like young workers are more concerned about retirement.
Retirement is something many of us are concerned with, but we usually start being concerned when we approach the age of retirement and start making calculations to figure out how much money we’ll need and how much money we’ll actually have.
However, more and more young people become interested in retirement plans before the age of 34. According to data, workers between 25 and 34 are saving a lot faster than the other age groups.
A survey was conducted by Fidelity Investments. The survey included responses from 4,650 households with an annual income of at least $20,000. From these people, the millennials save approximately 7.5 percent of their salary for retirement. The percentage has increased by 5.8 percent since two years ago.
The reason why the younger workers registered such a growth in savings was because two years ago they were saving too little, whereas older workers were already saving much from their salary.
People between 35 and 50 save 8.2 percent of their income while people between 51 and 69 save approximately 9.7 percent. Although older workers are still saving more for retirement, it is clear that young people are becoming more concerned about this matter.
The survey conducted by Fidelity looked into how much people earn, spend and save. They were trying to see how prepared are workers for retirement. Since young workers are starting to save this much already, this could only mean that by the time they reach old age and retirement they will be saving a lot more from their income than how much the present old workers are saving now.
According to statistics, compared to the number from two years ago, the number of people who could afford to pay at least for essential expenses when they retire has increased by 7 percent, from 38 percent to 45 percent.
Although it might not seem like much, the figures are still promising and within a few years we might have young workers saving as much as old workers are saving now.
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