Why millennials are saving at a younger age than any other generation

first_imgBoomers may have spurred the mutual fund industry, but millennials are embracing it at a far younger age—plunking down their first dollars a decade earlier in life, new research shows.The average age that millennial households started investing in funds is 23, according to the Investment Company Institute. That compares with age 37 for older boomers and 32 for younger boomers. Gen X started at age 26.The latest results echo earlier research from Transamerica Center for Retirement Studies, which found that millennials began saving at a median age of 22, Gen X at 27, and boomers at 35. Yet it doesn’t tell the whole story.Mutual funds, as we know them today, date to 1928. But their numbers did not soar until the 1980s—well after the first boomers entered the workforce. Those boomers were promised pensions and felt less pressure to save. Meanwhile, to the extent they wanted to invest their own money for long-term growth it was a difficult proposition. Individual stocks were their primary option. continue reading » 53SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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