Young savers plan for future

04.17.09
By Nicholas Storie

As their parents near retirement, some having watched their lifetime savings be depleted as the credit crisis lingers, a growing number of younger adults in the workforce are planning more aggressively for the future.

MassMutual's retirement services division released data last week that showed retirement plan participants under the age of 30 are saving more despite current economic conditions.

"Clearly, younger participants are beginning to understand the importance of starting early to plan and save for retirement," says Alison Salka, director of behavioral research, MassMutual retirement services division.

According to the MassMutual report, the average savings rate for the younger plan participants increased from 3.9 percent in the last quarter of 2008 to 4.6 percent during the first quarter of 2009.

Young employed adults and those about to join the workforce are increasingly recognizing the importance of being financial savvy in the face of daunting economic conditions.

Recent research from student loan provider Sallie Mae revealed that undergraduate students believe personal financial education classes should be introduced in high school or freshman year of college to help instill sound financial management skills.

Given the increasing complexity of applying for a home loan or borrowing money to finance a new car purchase, some others advocate introducing financial education in grade school.

More Personal Finance Articles | News Home | Discuss in our Forum

Young adults taking steps to protect their financial future