Millennials, here’s a bit of uplifting news.
A NerdWallet survey has found that millennial parents could be outsaving those of other generations when it comes to retirement.
Millennial parents, who range in age from 18-34, contribute a median of 10 percent of their annual income to retirement savings, according to the survey. This fits in with financial experts’ recommendations.
Meanwhile, Generation X parents (35-54) contribute a median of 8 percent and baby boomer parents (55+) contribute a median of 5 percent, the survey found.
An impressive 38 percent of millennial parents who are employed and contributing to their retirement savings report that they’re contributing more than 15 percent of their income. This makes them “supersavers” compared to Gen-Xer and baby boomer parents contributing that amount, at 24 percent and 23 percent respectively, NerdWallet reports.
The analysis by NerdWallet found that “if each generation maintained its surveyed savings rate between ages 26 and 67, the higher savings rate of millennial parents could set them up to retire with over $1 million more than baby boomer parents and over $400,000 more than Generation X parents.”
Millennial parents are most likely out of the generations to increase retirement contributions amid major life changes, including getting a high paying job, getting married, having a kid, having children reach school age and buying a house, the survey says.
And, millennial parents are more likely to make sacrifices to save, with 76 percent having done so, compared to 69 percent of Gen-Xers and 60 percent of baby boomers, according to the survey.
The top sacrifice for savings that millennials reported? Going out to eat.
“Everyone can use strategies millennial parents are using,” Arielle O’Shea, retirement and investing specialist at NerdWallet, told Business Insider. “Save more when you get a raise, when you pay off debt, or cut back on dining.”
The survey, conducted online by Harris Poll on behalf of NerdWallet, asked more than 2,000 U.S. adults, 1,112 of whom are parents and 874 of whom are non-parents, about their retirement savings habits.