Saving Habits of Boomers vs. Millennials

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and 55places.com.
Details here.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting optout@55places.com. Message/data rates may apply. I also agree to 55places.com’s Privacy Policy and Terms of Use.

Who is better at managing savings? Boomers or Millennials?
Who is better at managing savings? Boomers? or Millenials?
Who is better at managing savings? Boomers or Millennials?

There’s no question that each generation has a unique set of circumstances and experiences that form their values and goals. Baby Boomers and Millennials are no different in this regard. But what is it exactly that makes the Millennials and the Boomers handle their finances so differently, especially in their saving habits?

The Saving Habits of Millennials

Millennials have grown up during hard financial times as they’ve watched their parents and grandparents struggle to pay the bills, leaving little money left over to put aside for college, let alone retirement. Therefore, Millennials have developed different saving habits than previous generations. Millennials realize the importance of saving for retirement, because unlike previous generations, the prospect of not having Social Security to rely on is very real to them. They have experienced first-hand the ramifications of bad spending habits and have witnessed the housing crisis at its worst, making them more inclined not to make the same mistakes. And it’s probably because of such experiences that Millennials are currently saving about 7.5 percent of their income and actually started their savings around the age of 22.

The Saving Habits of Boomers

There are two segments of Baby Boomers, the first wave and the second wave. Most of the second wave of Baby Boomers are currently working, but will be retiring soon. The first wave, those currently 60-plus, started saving for retirement around the age of 37 and have a median savings of $50,000, according to Time.com.

However, their younger counterparts, currently age 55-59, started their retirement savings around age 31 and have a median savings of $150,000, which means they might be able to retire earlier than first-wave Boomers who say they will work beyond their retirement age.

In contrast, Millennials started saving for retirement at a much younger age. And, because they are more proactive when it comes to effectively managing their spending habits, they might very well be the generation that can actually choose to retire at or before their official retirement age. Only time will tell.

Possible Reasons for This Surprising Revelation

You would think since Boomers have been around longer and are now starting to enter retirement, they would be the generation more inclined to have a budget and follow it; however, that’s proving not to be the case. But why?

Well, it could be that Millennials are ten times more likely to use technology such as apps and other online tools to monitor their spending habits and manage their finances.  Another reason could be that Millennials are also more likely to seek advice and professional assistance ahead of a major financial decision than Boomers, as quoted in a recent article by CNBC.

The Bottom Line

For most Millennials, retirement could be almost 30 years away, giving them plenty of time for their thinking and saving habits to change, especially once they start having families of their own. However, let’s hope that all generations continue to develop healthy saving habits so they can enjoy the retirement of their dreams.  

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and 55places.com.
Details here.

We're here to help! (800) 928-2055

Call us to speak with a customer service representative.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting optout@55places.com. Message/data rates may apply. I also agree to 55places.com’s Privacy Policy and Terms of Use.

Exterior view of an attached home at Windsor Lakes in The Woodlands, Texas.

Houston 55+ Communities With Attached Homes for Sale

Imagine having more time for hobbies, travel, and friends—and less time spent on yard work and home repairs! In Houston, there are plenty of vibrant communities to choose from, each offering unique character and amenities. Let’s take a look!

The grounds of Gatherings at Potomac Station in Leesburg, Virginia.

New Active Adult Communities Added to 55places.com

In this comprehensive roundup, we bring you the latest additions to 55places.com—a trusted resource for exploring active adult communities. Over the past 30 days, several new communities have joined the ranks, each offering different amenities and locations.

A golf cart outside the golf club at CountryPlace in Pearland, Texas.

Retire on the Links in Houston, TX: Golf Course Homes for Sale

Active adults who are lifelong golfers or newfound golf enthusiasts can easily enjoy the sport when their neighborhood contains a golf course. Homebuyers who desire a golf course lifestyle and want to remain near the heart of a big city can find a great fit at one of these exceptional Houston area communities.

About 55places

We’re changing the way people 55 and older are searching for their perfect next place. With a national network of hand-selected real estate experts, plus comprehensive information, unbiased content, and on-the-go insight about thousands of communities across the country, we’re a trusted resource paving the way from here to home. Whether you’re interested in a low-maintenance single-level residence, an active lifestyle or age-qualified community, an intimate enclave, or anything in between, we can help you make your next move the best one yet.

Scroll to Top