An exclusive survey by Talker Research for Newsweek has revealed a stark generational gap when it comes to savings.
Baby boomers, aged 61-79 years old, are holding nearly twice the savings of millennials, aged 28-43.
The survey of 1,000 U.S. adults asked people about the savings they hold across all of their accounts. Boomers reported having an average of $216,007 in savings across all accounts, while millennials reported just $110,556.
Despite some reports that millennials are getting richer, the savings gap provides evidence that when it comes to keeping money for a rainy day, millennials aren’t doing so well.
Notably, nearly 18 percent of millennials report having no savings at all, compared to just 15 percent of boomers. At the other end of the spectrum, 8 percent of boomers have over $1 million saved, while only 2 percent of Millennials have reached that level.
Richard Barrington, a financial analyst for Credit Sesame, told Newsweek: “This difference in savings is not surprising given that boomers have had roughly 35 more years to save and benefit from investment returns. Millennials, on the other hand, are still in the earlier stages of their careers and typically have not yet reached their peak earnings years, which usually occur between ages 45 and 54.”
While the initial data may look like there is an alarming gap between millennials and boomers, there has even been the suggestion that millennials are currently better off than boomers were at their age. Barrington said that millennials need not worry as they still have plenty of time to save.
“Given another 35 years of savings, investment growth, and increasing earnings as they approach their peak income years, millennials could catch up to where boomers are today, even when adjusting for future inflation,” he said. “Contrary to popular belief, millennials are not at an inherent disadvantage when it comes to saving. In fact, adjusted for inflation, the average wage today is higher than when boomers were the same age. However, savings rates have declined significantly over time.”
The Bigger Picture
While millennials are not necessarily worse off than boomers, the data does show a broader trend of declining saving habits in America. In 2024, the personal savings rate hit 3.6 percent, marking the lowest rate of savings in more than a year.
Barrington said that everyone should be thinking about saving more, rather than less, for a comfortable future as people live longer.
“The more pressing concern is whether either generation has saved enough to fund a comfortable retirement,” he explained. “At age 65, the average person can expect to live another 18 years, but some may need savings that last 20 or 30 years. In that context, even boomer savings may be stretched thin over time.”
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