For decades, the three-legged stool was the metaphor for funding retirement: Social Security, pensions and savings/investments. Because of the recession and drop in pensions, the stool started to shake. That hasn’t escaped the notice of our adult children as they watch parents head into retirement.
The upside of those watchful eyes is that many millennials have begun saving for their own retirement. At an unprecedented age of 22, some 70 percent ofworking millennials are socking money away, according to a survey by the Transamerica Center for Retirement Studies. By contrast, the average boomer began saving at age 35 and average Gen Xer at 27. Thanks to this early start, millennials have amassed an average $32,000 in their 401(k) accounts, contributing about 8 percent of their salary.