They might not be saving as much specifically for their retirement as boomers are, but millennials have better financial habits.
That’s according to the Retirement Saving and Spending Study from T. Rowe Price, which found that millennials with 401(k)s have relatively good financial habits, in particular when compared with boomers with 401(k)s.
Millennials might not be socking away the 15 percent of their salary each year for retirement that the company recommends, but they recognize that retirement saving is important, and they’re interested in saving more.
And boomers aren’t saving that much, either; they put away an average of 9 percent of their pay (median 8 percent), compared with millennials, who are saving an average of 8 percent (median 6 percent).
They’re doing much better than their elders in other ways, too. When it comes to carefully tracking their expenses, 75 percent of millennials do so, compared with only 64 percent of boomers, and they also stick to a budget better (67 percent of millennials, compared with 55 percent of boomers).
Boomers might be saving slightly more for retirement than millennials, but 40 percent of millennials have increased their retirement savings within the last 12 months, compared with just 21 percent of boomers. That’s likely because millennials put 401(k) savings (below the company match level) and paying down debt on a par with one another, the study said.
More millennials also wish that their employers had started them off at a higher rate of savings than boomers, too. Among those who were auto-enrolled in their plans, 47 percent of millennials mourned that lost opportunity, compared with just 34 percent of auto-enrolled boomers.
Millennials also claim to be living within their means—88 percent of respondents said so—and 67 percent said they save by any means necessary, with 72 percent saying they’re better off financially than their parents were at their age.