August 04, 2017
One surprising bit of news on the planning front: When it comes to saving for retirement, millennials have Gen Xers and baby boomers beat. Some 82% of millennials eligible to participate in a workplace 401(k) plan are investing in it, versus 77% of Gen Xers and 75% of baby boomers, according to a recent study conducted by Bank of America Merrill Lynch. But it's not because younger workers are better at resisting temptations (like that most millennial of indulgences, avocado toast). It's simply because they're more likely to have been auto-enrolled in their employer's plan, and research shows the vast majority of those who are auto-enrolled stick with it. There's a good lesson here for everyone else: Put your savings on autopilot. And if you're 50 or older, take advantage of the annual catch-up contributions that the IRS allows and sock away up to an extra $6,000 in your 401(k) and $1,000 in your IRA.