What millennials should know about saving for retirement

Learn about 401k and other retirement plans

SPRINGFIELD, Mass. (WWLP) – It’s difficult enough as it is making a habit to save money and then there’s the question of which way to save.

Today’s millennial generation grew up during somewhat of an economic roller coaster: from the dot com boom and bust, to September 11th; the housing bubble and crash and the credit crisis. They’ve seen highs and lows and felt the impacts on their parents’ savings. And now it’s impacting how they save.

Close to 40 percent of young Americans in their late teens to late 20s choose cash as their number one way to invest. They’d rather save what they have than take a short term risk for long term money.

“We don’t know what’s going to happen next. The economy is unstable and not knowing what to invest in, when to invest in it, when to pull out.

Young Americans are saving; it’s just not the optimal way for their retirement. Tim Suffish of St. Germain Investments told 22News millennials can afford to take on more risk because they have more time to recover.

“What they should invest in is a balanced portfolio of stocks and bonds, mostly stocks because they’re younger. That will help them outpace inflation over the next 40-50 years,” Suffish said.

Suffish added that millennials are benefitting from having much more access to and awareness of 401k and other retirement plans. It’s a conversation that begins as soon as they accept a job.

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