1. Dedicating nearly half of one’s income to saving and investing. The Millennials surveyed said that they devote an average of 22% of their take-home pay to savings and 18% to investing. Boomers dedicate 12% and 11%, respectively.
2. Believing in the markets. 45% of Millennials have a greater interest in investing in stocks compared to five years ago, compared to 16% of Baby Boomers. Again, this is difficult for someone who watched their savings dissolve during the financial crisis to undertake. But as I mentioned in a previous post, a market dip is the best time to get in.
3. Taking advantage of a 401(k). 69% of Millennials agree that a 401(k) is a good way to save for retirement. If you have a 401(k), be sure to pay in enough to qualify for the company match and max it out if you can – no matter which generation you claim as your own.
When was the last time you read your 401(k) statements? Are you more confident about your retirement than your peers? Share your stories here.
Heather Pelant is Personal Investor Strategist for BlackRock. She is a regular contributor to The Blog and you can find more of her posts here.