Saving for retirement is like eating our peas and carrots: We know we should do more of it, but few of us do.
However, it appears that some generations are better than others when it comes to putting away money for their golden years. In fact, one surprising generation can teach the rest of us a thing or two about building a solid financial future.
Recently, Empowering America surveyed more than 2,500 Americans to learn more about how they are saving and preparing for retirement. Following is a look at how four different generations are doing.
1. Baby boomers
Participants in this generation contributing to retirement plans: 83.9%
We give boomers a bit of a pass for their sagging savings rate, which is the lowest among the generations surveyed. After all, a decent percentage of boomers are already in retirement and therefore no longer saving for it.
Still, Empowering America characterizes the last-place finish of baby boomers as somewhat surprising, and it is likely that more than a few members of this generation regret not having saved more for their golden years.
If you are among them, check out the tips from Money Talks News founder Stacy Johnson in “I’m 55 and Have No Retirement Savings — What Should I Do?” While you might be a tad past that age, the advice is still great for anyone who is older and only has saved a little.
2. Generation X
Participants in this generation contributing to retirement plans: 85.7%
Members of Generation X are not ready to retire just yet, but they can see the promised land just over the horizon. They are doing a better job than boomers of saving, but younger workers still are outpacing them.
While it might be too late for a baby boomer with no savings to end up rich, workers who belong to Generation X still have time. So, if your goals are ambitious, check out “5 Ways You Can Save $500,000 in 15 Years.”
Participants in this generation contributing to retirement plans: 86%
This much-maligned generation is doing a surprisingly good job of saving for retirement. If you are a millennial, don’t worry about the steady stream of sneers you hear from baby boomers and members of Generation X. It appears that you are going to get the last laugh.
4. Generation Z
Participants in this generation contributing to retirement plans: 86.8%
In these trying times, here is a heartening statistic: The working members of the youngest generation surveyed are doing the best job of saving for retirement.
This is especially good news because the earlier you start saving, the more time your money has to compound — and the wealthier you are likely to get.
So, if you are a member of one of the older generations, don’t curse at the young whippersnappers around you or holler for them to “get off your lawn.” Treat them nicely, and maybe they will give you a loan — or at least teach you some valuable lessons about the right way to save.
Can’t find a friendly member of Generation Z to guide you? Sign up for the Money Talks News’ retirement course, The Only Retirement Guide You'll Ever Need.
Money Talks News founder Stacy Johnson is your guide for the course — a 14-week boot camp intended for those who are 45 or older. It can teach you everything from Social Security secrets to how to time your retirement.