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Why Millennials Aren't Saving For Retirement--And What We Can Do To Change That

Posted by Matti Miranda on November 04, 2014 at 10:38 AM

An interesting take on the relationship between retirement savings and millennials. Published on July 31, 2014 by Ben Schwartz and Sarag Ayres, for Center For American Progress

The median Millennial has saved exactly $0 for retirement—a startling statistic. While retirement may be in the distant future for the generation of American workers born since 1982, saving early is important because that money has the most time to realize the benefits of compounding interest.

The problem is not just that young people in general save less than older workers because they earn less—it is that young people today are actually saving less than their parents did at the same age. In 2010, people under the age of 40 had saved about 7 percent less than Americans in their 20s and 30s in 1983. And young people are saving at a lower rate than experts recommend: While financial planners recommend setting aside at least 10 percent of income for retirement, workers under the age of 34 are putting away just 5.5 percent, according to a recent survey.

Read the full story here: https://www.americanprogress.org/issues/economy/news/2014/07/31/94933/why-millennials-arent-saving-for-retirement-and-what-we-can-do-to-change-that/