Many consumers are lacking retirement savings and those in younger generations, perhaps not surprisingly, are less likely to have started saving at all compared with old generations, according to a survey from GOBankingRates.
The survey included three age groups - Millennials (18 to 34), Generation X (35 to 54) and Baby Boomers (55 and older). They were asked how much money they have saved for retirement - ranging from less than $10,000 to $300,000 or more. Fifty-six percent of consumers surveyed have less than $10,000 saved for their retirement and one-third reported they don't have any savings.
Millennials are 40% more likely to not have retirement savings compared to Generation X and 50% more likely to lack savings compared to consumers age 55 and older, according to the survey. While many respondents reported having less than $10,000 in savings, 13% have $300,000 or more in retirement accounts.
Kristen Bonner, who led the research for GOBankingRates, said the fact that so many people have $300,000 or more in retirement savings shows how easily the amount of money in a retirement fund can grow with time for people who are dedicated to regular contributions.
An estimated 50% of Generation X is making an effort to save for their future, GOBankingRates reports. A little more than 48% of Generation X has saved more than $10,000, including 26.7% who have $100,000 or more ready for their retirement.
Among Millennials, 72% have saved less than $10,000 or nothing at all for retirement. However, older Millennials are twice as likely as younger Millennials to have savings, according to the research.