The generation gap has received a lot of attention over the decades. One of the generation gaps that has been generating discussion more recently concerns saving and retirement readiness. But the results of recent analysis in this regard may surprise.
A recent T. Rowe Price study shows that there is indeed a gap between some generations’ readiness. But as The Street reports, that study does not show what one may automatically assume. Rather than Baby Boomers — the generation whose members are beginning to retire and who are otherwise poised to do so sooner than other generations — it’s the Millennials, born 1978-2000, who may be better positioned overall.
T. Rowe Price says that the Boomers they studied are saving more than Millennials, but only just; and that while Boomers are saving slightly more than Millennials, since the latter will be working longer than the Baby Boom generation, they are well-positioned to save. Not only that, the study found among Millennials earning power exceeding that of the average American worker, a strong interest in saving, and financial discipline.
There are a variety of reasons suggested to explain the younger generation’s financial savvy. Jonathan Guyton, Principal at Cornerstone Wealth Advisors, in a Wall Street Journal blog suggested that one of them may be not only learning good saving habits from older generations and retirees, but also good spending habits.
A recent T. Rowe Price study shows that there is indeed a gap between some generations’ readiness. But as The Street reports, that study does not show what one may automatically assume. Rather than Baby Boomers — the generation whose members are beginning to retire and who are otherwise poised to do so sooner than other generations — it’s the Millennials, born 1978-2000, who may be better positioned overall.
T. Rowe Price says that the Boomers they studied are saving more than Millennials, but only just; and that while Boomers are saving slightly more than Millennials, since the latter will be working longer than the Baby Boom generation, they are well-positioned to save. Not only that, the study found among Millennials earning power exceeding that of the average American worker, a strong interest in saving, and financial discipline.
There are a variety of reasons suggested to explain the younger generation’s financial savvy. Jonathan Guyton, Principal at Cornerstone Wealth Advisors, in a Wall Street Journal blog suggested that one of them may be not only learning good saving habits from older generations and retirees, but also good spending habits.
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