Millennials Gravitate to Age-Based Funds
Posted On August 21, 2012
Millennials are gradually awakening to the need to plan for retirement and the financial industry is gradually awakening to the importance of reaching out to Millennials. The generation and the industry may have found a meeting place in age-based and Roth funds, according to an analysis by Fidelity.
According to the study, about two thirds of Millennials are choosing funds organized around age-based asset allocation. Among all participants, only about 45% choose that option. About half chose target-date funds compared with 30% among investors at large.
Millennials also choose Roth savings options 50% more than other Generations. About 9% of Millennials choose them compared with about 6% of all investors. In fact, Millennial participation seems to have driven up Roth offerings in employer 401K plans from about 15% to 50% making them available.
http://www.boston.com/business/personal_finance/blog/2012/08/generation_y_adopting_age-base.html