• Fri, Aug 1 - 10:00 am ET

Millennials Are Awesome At Saving Money For Retirement … In Theory

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Lots of millennials aren’t saving for retirement, but it may not be because they’re irresponsible—and they are saving money nonetheless. | Source: ShutterStock

For every old white dude who says millennials are useless and the economic equivalent of a basic bitch, yet another reason to take a seat: Millennials are actually great at saving money.

Millennials notoriously had (and likely still have, to some degree) trouble finding jobs when they graduated college, but they made up for it by saving the little money they were able to make and acquire. Experts say that millennials, those of us between about 19 and 34 years old, aren’t stupid about saving.

“I would say the 2008 and 2009 and the Great Recession, really did have a key impact, both on me and my generation as far as how we choose to save for our future retirement…our parents played a role in that. Seeing what they went through, we don’t to NBC News.

He continued, “You start to see that your parent’s nest eggs are being impacted. As a young and impressionable individual going into the marketplace, you say ‘I really need to key in on how much I’m spending and how much I’m saving for the future.’”

Other motives for millennials saving money now as opposed to later on include the uncertainty (read: pretty certain death) of Social Security for our retirement, as well as fear of another great recession or depression. About 80 percent of millennials plan on self-funding their retirement through 401K and other employer plans, as well as IRA accounts.

Still, not all millennial saving habits are perfect: Many millennials want to save using cash and play it a little bit too safe, which means they may not have as big returns on their investments as prior generations had. Also, another issue millennials face is that they’re not necessarily putting enough money aside, and that’s in part because they have to allocate funds to credit card and student loan debt … because they can’t quite nab all those jobs yet.

But guys? Good start.

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  • leahdawn

    I got a new job, but am kind of pissed that I have to contribute to a pension plan that I can confidently say isn’t going to exist by the time I get to retirement. Would rather chuck money into an RRSP that is at least guaranteed to be mine when the time comes.