RETIREMENT PLANNING MILLENNIALS ARE STARTING SOONER
Millennials are at the perfect age to take a few simple steps that will eventually give them financial freedom in their retirement years. While that may seem far away, it’s simply good financial smarts to set aside money today for financial security in the decades to come.
Earlier in 2016, Transamerica conducted a 25-minute online survey of 4,161 full-time or part-time workers who were employed by for-profit companies with at least 10 workers. The results provided insight into the retirement issues facing working Americans of all ages.
What’s working?
Almost 72 % of millennial survey respondents said they’re saving for retirement in an employer-sponsored retirement plan or outside of work. The median amount they’re saving is 7 % of their annual salaries.
For example:
If you start saving at age 25:
- To retire at age 62: Save 15 % of pay
- To retire at age 65: Save 10 % of pay
- To retire at age 67: Save 7 % of pay
- To retire at age 70: Save 4 % of pay
If you start saving at age 35:
- To retire at age 62: Save 24 % of pay
- To retire at age 65: Save 15 % of pay
- To retire at age 67: Save 12 % of pay
- To retire at age 70: Save 6 % of pay