Thursday, April 10, 2014
According to T. Rowe Price customer data, investors under the age of 34 have eight times as much money in Roth IRAs than traditional IRAs. This shift is even more dramatic than an IRS analysis released last year, which showed investors ages 15-35 had four times as much money in Roth IRAs than traditional IRAs.
This growing preference for Roths stems from the reality of younger workers’ lower paychecks, a broader cultural awareness of the strategy, and the millennials’ savings-oriented mentality based on distrust of the financial industry.
See Andrew Pavia, Big IRA Shift: Gen Y Picks Roths, OnWallStreet, Apr. 7, 2014.