Millennial Parents Outpace Gen X, Boomer Parents on Retirement Savings
By Arielle O'Shea
Millennial parents may be out-saving parents of every other generation in terms of retirement, according to a new NerdWallet survey.
Millennial parents saving for retirement report saving a median 10% of their annual income, in line with recommendations from financial experts.
This survey was conducted online within the United States by Harris Poll on behalf of NerdWallet from August 15-17, 2017, among 2,001 U.S. adults ages 18 and older, among whom 1,677 are saving for retirement and 1,112 are parents. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Julianne Rowe.
NerdWallet’s proprietary analysis of potential retirement savings accumulation is based on the median savings contributions reported in the survey by employed millennial, Generation X and baby boomer parents. The analysis assumes savers begin those contributions at age 26 — the average age of first-time mothers, according to the Centers for Disease Control and Prevention — and retire at age 67, earn an average annual return of 6% and receive increases in income of 2% per year. Retirement balances are not adjusted for inflation.