“Listen to your elders” doesn’t always ring true, at least not when you ask millennials about retirement planning<\/a>. <\/p>\n Right or wrong, good or bad, millennials, or those born between 1981 and 1996, have a very different approach to saving for retirement<\/a> than the generation before them. <\/p>\n From how they work to how they save, they’re eschewing Gen X and forging their own path. <\/p>\n That independence is partly a byproduct of the environment in which they came of age. It’s also shaped by the tools and technology available to them. But one thing is certain: both generations share the same worry: whether they’ll have enough money to retire <\/a>comfortably. <\/p>\n Among Gen Xers, 63% worry they’ll outlive their retirement savings. For millennials, it’s 56%, according to research from BlackRock. <\/p>\n That’s where the similarities end. Beyond that, millennials approach retirement differently than Gen Xers in these surprising ways. <\/p>\n 1. They started saving earlier It’s pretty much established by now that the sooner you start saving for retirement, the better off you’ll be when you decide to retire. And if you save in a tax-advantaged company-sponsored retirement savings plan like a 401(k)<\/a>, it’s even better. <\/p>\n For Gen X, that wasn’t a given; for millennials, it was. As a result, millennials began saving earlier than their older counterparts. Add automatic 401(k) enrollment <\/a>to the mix, and it’s easy to see why Gen X is playing catch-up in terms of retirement savings. <\/p>\n At 35 or 40, millennials are ahead of where Gen Xers were in terms of saving for retirement at the same age, says Bryan Bibbo<\/a>, President and CFO of JL Smith Holistic Wealth Management. <\/p>\n 2. They are less risk-averse <\/p>\n From cryptocurrency<\/a> to ETFs, a lot has changed in terms of how retirement savers can invest their money, and millennials aren’t afraid to test the waters. <\/p>\n After all, millennials became adults during a more than ten-year bull run in the stock markets and are inclined to believe everything keeps going up, which makes them more willing to take risks. <\/p>\n Gen X, on the other hand, lived through the Dotcom bust and the Great Recession of 2008 and 2009, and as a result, are much more skeptical and conservative when it comes to investing. <\/p>\n “Millennials are willing to take a lot more risk than Generation X,” says Stephanie Temporiti<\/a>, a wealth advisor at Hightower Wealth Advisors. <\/p>\n 3. They value advice Gen Xers are an independent group. After all, they were the latchkey kids and the ones sent out to play unsupervised until dark. They didn’t have helicopter parents managing their every move. As a result, they are more apt to go it alone instead of seeking the advice of financial advisers. <\/p>\n Millennials are different. “They tend to work with financial advisers<\/a> at a young age compared to Gen X, who held off on that,” says Bibbo. “Gen X is a little ashamed that they are not feeling on track. Millennials say I trust you, you’re the professional, get me on track.” <\/p>\n 4. They are more tech-savvy <\/p>\n Millennials are the first generation to grow up with mobile devices and, by default, are more tech savvy than Gen X. That has seeped into everything, including the way they invest and save for retirement<\/a>, whether it’s using robo advisors, investment apps, or online trading platforms. <\/p>\n They are also taking advantage of the wealth of financial information available over the internet to become more informed investors, something that wasn’t as accessible when Gen X was younger. <\/p>\n “Millennials don’t seem skeptical about financial tools versus some of the older Gen Xers,” says Bill Van Sant<\/a>, managing director at Girard, a Univest Wealth Division. <\/p>\n 5. They don’t want to wait to pursue happiness <\/p>\n<\/a> Credit: Getty Images <\/p>\n
<\/a> Credit: Getty Images <\/p>\n