By
Source: 401K Specialist
Despite facing financial retirement planning hurdles, Millennials are coming out on top with their retirement savings.
That’s the latest finding from Vanguard’s newest Retirement Readiness report, released today, which finds Millennials workers are set to replace 58% of their prior earnings during retirement, and eight percentage points over what was estimated for Baby Boomers.
Using its new forecasting tool, the Vanguard Retirement Readiness Model (VRMM), Vanguard divides its cohorts into three generations: early Millennials (ages 37-41); mid-Generation X (ages 49-53); and late Baby Boomers (ages 61-65). For each, Vanguard estimates generational readiness at four points from the national income distribution—the 25th, 50th, 70th, and 95th percentiles.