Generation X is more savvy than older investors when it comes to retirement.
Almost two-thirds -- 64% -- of adults aged 18 to 34 are already saving for retirement, according to a recent retirement and savings survey by Lincoln Financial Group, Ft. Wayne, Ind., and Money Magazine. A total of 44% of people in the age bracket are saving for retirement before they reach age 25, and 18% of Gen Xers are starting before they hit 20.
Jon Boscia, president and chief executive officer of Lincoln Financial Group, found the survey's results "extremely encouraging."
The research indicates that the younger generation is more likely to sacrifice immediate pleasures to reach long-term goals. And compared with the information their parents and grandparents gave, the results are even more amazing. One-third of current retirees did not start saving or investing until they were 40, and the average baby boomer did not start until 27.
The average American started saving for retirement at age 30, but most agree that they should have started a decade earlier, at age 22. A third of respondents said the ideal age to start saving for retirement is 20.
The study also looked at 401(k) plan participants, who put aside a larger portion of their savings (60%), although their total amount saved per month was the same as most Americans, about $300.
Overall, Americans are pretty satisfied with 401(k) plans, with more than 80% ranking their 401(k) as the best retirement investment.