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IBD's Paul Katzeff: How millennials are building better 401(k) accts than older workers
http://www.investors.com/etfs-and-funds/retirement/how-millennials-are-building-better-401k-accounts-than-older-workers/ Millennials lag older workers in certain key measurements of 401(k) account usage. For one, only 59.4% of millennials have an account vs. 63.6% of Gen Xers and 66.1% of baby boomers. But millennials are leaders in what may be the single most important trait. As a group, they are on track to replace a higher portion of their pre-retirement income once they retire. Here's how they're doing it.
@Paul_Katzeff Two points about the data. You noted: "As a group, they are on track to replace a higher portion of their pre-retirement income once they retire." Are millennials replacing a higher average wage, percent wise, than the other generations mentioned? I'd need to know relative wages of these groups in order to consider "a higher portion". Lastly, at least for many of the boomers; who are now retired, there was not access to a 401k plan for a large period of their earning years. This would/should be reflected in order to define a baseline for earnings and the noted "replacement monies at a higher portion/rate. Many folks I know did not have access to 401k plan until the late 1980's or early 1990's and I am sure there must be many other much later dates. Also, many of these same folks had very decent pension programs in place and knowing social security would also be in place; felt no need for a 401k/403b.
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Two points about the data.
You noted: "As a group, they are on track to replace a higher portion of their pre-retirement income once they retire."
Are millennials replacing a higher average wage, percent wise, than the other generations mentioned? I'd need to know relative wages of these groups in order to consider "a higher portion".
Lastly, at least for many of the boomers; who are now retired, there was not access to a 401k plan for a large period of their earning years. This would/should be reflected in order to define a baseline for earnings and the noted "replacement monies at a higher portion/rate. Many folks I know did not have access to 401k plan until the late 1980's or early 1990's and I am sure there must be many other much later dates. Also, many of these same folks had very decent pension programs in place and knowing social security would also be in place; felt no need for a 401k/403b.
https://www.learnvest.com/knowledge-center/your-401k-when-it-was-invented-and-why/
Anyway...............
Catch