Millennials save 8.3% of salary in their 401(k) annually versus the national average of 6%, according to Guideline. But other studies have produced different results. According to Vanguard, the average rate is 5.9% for people 25 to 34.
Older millennials save more than younger ones. Those born between 1981 and 1988 save on average 10.9% of salary, vs. younger millennials, those born between 1989 and 1996, who save 7.7%.
Millennials still fall behind Gen X on savings. Guideline found Gen X saved 10.1% of their income annually, vs. millennials at 8.3%.
Millennials who work in tech and startups save the most at 10%, followed by those working in education (9.8%) and medical care providers (9.7%). The lowest? Real estate (6.3%) and administrative services (5.1%).
Massachusetts millennials have the highest savings rate at 9.7%, followed by Virginians at 9.6% and Californians at 9.2%. The states with lowest millennial savings averages? Oregon at 6.2%, Florida at 5.9% and Utah at 5.6%.
The rap on the millennial generation is they are an island: They don’t save and they don’t talk to advisors. Guideline 401(k), a 401(k) plan provider, did a study on 5,400 millennial plan participants and found something a lot different. Check out the gallery above for some of their most interesting findings.
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