When it’s several decades away, you might categorize saving for retirement as a back-burner concern.
And when you’re younger, contributing to an individual retirement account might seem like an impossible stretch. Yet people who made the leap generally say they’re sorry they didn’t start earlier.
Millennials seem particularly drawn to Roth IRAs, which are showing an across-the-board uptick from all age groups.
Drawing on investor data, Fidelity found more than half of IRA contributions go into Roth IRAs, and especially from people age 23 to 38. “Millennials opened 41 percent of new Roth IRA accounts in 2018, and 74 percent of their contribution dollars are going into Roths,” said Maura Cassidy, vice president of retirement at Fidelity.
Ashley Sprowl, 40, started her Roth IRA when she was 34 and wishes she’d started sooner. “My dad said to start right away, but I didn’t get the importance of tax-free growth.”
Sarah Lindsay Miller, 29, maxes out her Roth IRA every year. “I would have funded mine in high school and college if I had known about it,” said Miller, an office manager in Estes Park, Colorado.