Go Banking Rates: “Young People Saved More for Retirement Because of the Pandemic”
August 13, 2021, Go Banking Rates — In today’s article by Nicole Spector, she reports that according to a new survey from Voya Financial, 72% of Voya retirement plan participants made changes to their savings rate in the second quarter of 2021 upped their savings.
“These findings suggest that the economic woes of 2020 motivated people focus more on saving,” she writes. “Younger people are leading the way. Of those who altered their savings in April 2021, the vast majority of Gen Z (82%) and millennials (73%) boosted their savings rates. Though inspired by tremendous loss and economic upheaval, this more rigorous approach to retirement planning by saving is good news.”
Nicole turned to Marguerita Cheng, CFP® Pro, for insights.
“Even if they can only contribute modest amounts, participation in employer-sponsored retirement plans can help build wealth,” said Marguerita. “If they don’t have access to a plan because their employer doesn’t offer one, they can establish an IRA or Roth IRA.”