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NEW YORK >> Workers are saving more for retirement, and the youngest — not exactly known for squirreling money away — are boosting their savings rates faster than any other age group.
Millennials — those between the ages of 25 and 34 — are saving a median of 7.5 percent of their pay for retirement, including whatever match they get from their jobs, according to a survey by Fidelity Investments of 4,650 households with at least $20,000 of annual income. That’s up from 5.8 percent two years ago, when the last survey was conducted, and is the largest jump among age groups.
That’s still not enough, but at least the trend is improving. Financial advisers suggest socking away 15 percent of pay, and more if workers haven’t saved in their earlier years.
Younger workers had the most room for improvement. Older workers were already saving more of their paychecks. Workers age 35 to 50 are now socking away 8.2 percent of their income, up from 7.7 percent two years ago. The oldest workers, age 51 to 69, are saving 9.7 percent, up from 8.1 percent.
Older workers are the most prepared for retirement, and not just because they’ve had longer to save. They are more likely to have access to pensions, which have become rare in the workplace.