Over half of US workers are only saving 10% or less of their salary, according to Transamerica data, while 44% are regarded as "Super Savers" when it comes to retirement planning. oXYGen Financial CEO and certified financial planner Ted Jenkin joins Wealth! to give insight into what it means to be a "Super Saver" and how Americans can learn to save even more of their money.
"It’s people that save 10% or more of their salaries. If they get a company match at work, it can be close to 15%. And interestingly, in the first quarter, Fidelity found here in 2024 that the average savings rate into 401(k)s was 14.2%, which is close to that 15% target," Jenkin tells Wealth! "What’s ironic about it across the generations is that Generation Z has the most amount of Super Savers right now. Generation X has the lowest amount of Super Savers."
He continues with: "The biggest thing is they’re just not susceptible to lifestyle inflation. They use something called the rule of thirds, which means every time you get a pay raise at work, about a third is going to go to taxes, a third goes to fun, and then a third [goes] to additional savings. In addition, a lot of these Super Savers now automatically enroll in their 401(k)…"
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