Despite market volatility during the past four years, people in their 20s are actually investing more in equities in their 401(k) plans than previous generations did at the same age, according to research by Vanguard Center for Retirement Research.

"At least within 401(k) plans, we are not seeing a lost generation of retirement investors," said Jean Young, a senior research analyst at Vanguard Center for Retirement Research.

A recent Vanguard research paper, "Generations: Key drivers of investor behavior," one concern is whether this period of weak equity market returns has discouraged younger investors from taking stock market risk. The report theorized that a decade of weak returns would make younger investors wary of buying stocks.

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