3 practical tips from millennials, Gen Xers maxing their 401(k) plans

If you’re trying to contribute the max to your retirement plan, know this: You can still have your Netflix or Hulu subscription and go on vacation.

The Principal Financial Group studied 1,498 adults in October and November last year. Participants saved at least 90 percent of the maximum allowed under their retirement plan.

This year, you can defer up to $18,500 in your 401(k). In addition, you can save up to $5,500 annually in an IRA, plus $1,000 more if you’re over age 50.

The participants, who were employees in companies that use Principal’s retirement plan recordkeeping services, were born between 1965 and 1995 — a cohort that combines Gen X and millennials.

Big savers also tend to be big earners: Close to 80 percent of the participants had income exceeding $100,000.

“We spend a lot of time talking about what people aren’t doing right when saving for retirement,” said Jerry Patterson, senior vice president, retirement and income solutions at Principal Financial Group.

“We aren’t spending enough time celebrating what people are doing correctly,” he said.

These are the three habits of retirement “Super Savers,” according to Patterson, that you could emulate.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get The Latest Investing Tips
Straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.