Workers are saving more for retirement, led by Millennials

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BY STAN CHOE

Workers are saving more for retirement, and the youngest not exactly known for squirreling money away — are boosting their savings rates faster than any other age group.

Millennials between the ages of 25 and 34 are saving a median of 7.5 percent of their pay for retirement, including whatever match they get from their jobs, according to a survey by Fidelity Investments of 4,650 households with at least $20,000 of annual income. That’s up from 5.8 percent two years ago, when the last survey was conducted, and it is the largest jump among all age groups.

That’s still not enough, but at least the trend is getting better. Financial advisers suggest socking away 15 percent of pay, and more if workers haven’t saved in their earlier years.

Younger workers had the most room for improvement, because they were saving such a pittance. Older workers were already saving more of their paychecks. Workers aged 35 to 50 are now socking away 8.2 percent of their income, up from 7.7 percent two years ago. The oldest workers, aged 51 to 69, are saving 9.7 percent, up from 8.1 percent.

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