Millennials Saving for Retirement, but Most Have Less Than $10K

Boomers aren't doing that much better.

Fifty-eight percent of Millennials are saving for retirement, and 38% know how much they will need, according to a survey by Ramsey Solutions. Of the 58% who are actively saving, they began doing so at age 23.

Sixty percent of Millennials have less than $10,000 saved toward that end; however, that’s roughly the same amount as Baby Boomers have. Managing debt and living a balanced lifestyle are setting Millennials back, according to Ramsey Solutions. Fifty percent said the cost of living is the main reason they are not saving more for retirement, followed by taking care of their children (27%), student loans (23%), credit card debt (22%) and their mortgage (21%).

“It’s encouraging to see that Millennials are setting themselves up to have a much more positive retirement outlook,” says Chris Hogan, spokesperson for Ramsey. “But while Millennials have a great chance of having a secure retirement, they still need to focus on eliminating debt, and maintain a balanced lifestyle so they are able to increase the amount they’re saving for retirement.”

The survey also found that 70% of Millennials wish they were investing more, and 80% plan to save more in the future. Forty percent of Millennials have decided at what age they will retire.

While more than 50% of Baby Boomers expect that Social Security will comprise the majority of their retirement income, only 28% of Millennials think so.

The report is part of a four-part series that Ramsey is releasing on the state of retirement in America, based on a survey of 1,000 adults. The full iteration of this installment can be downloaded here.