The Financial Generation Gap: Comparing Savings Trends Between Age Groups

You might assume that as a generation moves closer to retirement, its collective rate of saving increases. A recent survey from New York Life, however, revealed otherwise.

Priorities change with each phase of life, from getting through college to caring for a family to setting money aside for retirement.

And despite current economic headwinds, one generation in particular is doing pretty well when it comes to saving money.

Millennial domination

Every individual’s situation is unique, so it’s usually not a good idea to compare your nest egg to that of others. But it might be beneficial to take a broad look at the habits of similar age groups.

Starting with the oldest generation included in the recent report, here’s how much those groups saved, on average, during 2023:

• Baby Boomers (born between 1946 and 1964): $4,059.72
• Generation X (born between 1965 and 1980): $5,132.20
• Millennials (born between 1981 and 1996): $9,299.45
• Generation Z (born between 1997 and 2012): $6,440.67

Millennials seem to be crushing it, socking away nearly twice as much last year as the older Gen Xers, who also came in behind the youngest generation on the list.

Analyzing the facts

Despite the disparity between Gen X and the Millennial generation, the common wisdom remains valid. As people get older and presumably have an opportunity to earn more money, their rate of savings tends to increase.

What seems to be holding Gen X back, however, is that this generation has the highest amount of average credit card debt — $9,123 compared to Millennials, who came in second at $6,521.

But no matter your age, you can improve your savings status by finding a high-yield bank account, prioritizing debt with the highest interest rates, and eliminating unnecessary expenses from your budget.

Chris Agee July 6th, 2024

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