Tom Anderson, in a recent article published on CNBC, discusses how more millennials are investing in 401(k) plans. While younger employees benefit the most from participating in 401(k) plans, historically, they have been the least likely to participate.
The Bank of America Merrill Lynch analysis reported that 64% more employees between ages 18 and 34 started contributing to 401(k) plans than in 2013.
This growth in participation, according to the article, can be attributed to:
- Improvements in the economy and job market
- Rise of auto-enrollment and new streamlined sign-up processes
- Greater financial education in the workforce
- High influence of Baby Boomer parents who had not saved as much for retirement
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