Despite a gloomy financial picture that includes student loan debt and soaring inflation, many younger people have still managed to make remarkable strides when it comes to growing their wealth. The latest evidence: Significantly more Gen Zers and millennials are investing outside of the workplace.
The percentage of households headed by a twentysomething investing in a Roth IRA almost tripled from 2016 to 2022—6.6% to 19.2%—according to data from the U.S. Federal Reserve analyzed by Boston College’s Center for Retirement Research. No similar growth was seen in households headed by older age groups or in terms 401(k) participation.
The growth in Roth IRA usage was concentrated among the top-third highest earners, according to CRR’s analysis, which the organization credits it to fintech platforms like Robinhood making it easier in recent years to access financial…
