EditorToday, there are more Millennials—the kids whom many claim are entitlement-driven and only think about the “now” instead of the future—saving for their retirements than prior comparable age groups.
In fact, 70% more than a comparable group in 2003, according to Vanguard.
Millennials are saving more in their 401(k) plans, despite popular perceptions of the age group as not being a bunch of savers.
That’s according to a new white paper from Vanguard, which also found that millennials are putting more money into equities despite their perception as equity-averse.
How are these kids doing it?
Well, they are not doing it. It is being done for them.
In 2013, millennials had a higher 401(k) participation rate than did participants in the comparable age group back in 2003. But that’s largely because of plans designed to feature automatic enrollment, the paper said.
Vanguard plans that have auto enrollment, it reported, saw 87 percent of millennials participating in 2013.
That’s a whopping 70 percent higher than the comparable age group back in 2003. “With the continued evolution and improvement of DC plans,” said the white paper, “millennial investors are the first generation with access to automatic plan features from the beginning of their working years.”
So, as long as companies offer a 401(k) plan, if they want employee participation—especially among younger employees—they would be best served by having plans that provide automatic enrollment.
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