Saving secrets from young super savers| North Loop Official Blog
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26 Nov 2020

Saving secrets from young super savers

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Research shows that millennials (born between 1981 to 1997) have an entirely different savings pattern in comparison to some of the older generations.

Only one out of five millennials save 15% or more of their income for retirement, and the average savings rate among younger generations in the United States is about 7% (as of 2018).

Supersavers vs Non-supersavers-

A recent survey undertaken discovered that a small percentage of millennials, labeled super savers, managed to save over 20% of their income for retirement (which is a lot compared to the other end of the spectrum of millennials).

On the other hand, a large chunk of the population, comprising of non-super savers, managed to save just under 6% of their income.

One of the pivotal ways to retire young, retire rich is to start saving/investing by 25 years of age (even earlier if possible).

Fifty-seven percent of super savers have claimed that they’ve retired or have planned to retire much earlier than their parents did, compared to 46 percent of non-super savers.

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How do supersavers cut costs and save money?

Supersavers have an entirely different spending habit as compared to the masses. They spend lesser than non-super savers in almost every category.

Supersavers make some of the following sacrifices-

  • driving older vehicles (48%)

  • owning a modest home (42%)

  • not traveling as much as preferred (39%)

  • Doing their own household chores than hiring help (39%)

  • doing DIY projects instead of hiring outside help (38%)


Living within or below one’s means does not translate to eliminating fun from one’s life. Small changes can make a big difference over time, and making smart financial choices don’t necessarily translate to sacrificing one’s quality of life.

Supersavers are very smart with their debts. Instead of accumulating debt and paying it off in the form of EMIs with high interest rates, supersavers suggest paying off the entire card balance the next month.

Supersavers are also very well versed with various investment instruments and keep looking for avenues to multiply their savings.

Investments are even more effective if done at the beginning of one’s career, thanks to the power of compounding over time.

How to plan for retirement?

The first thing an individual needs to think about while planning for retirement is the type of life desired.

Close to 70% of supersavers have started saving money for retirement in their mid-20s.

Tips to save money for retirement-

Aim to save a minimum of 15% of your income in your retirement savings account (with the help of your employer’s contribution).

Try to maximize retirement contribution from your employer’s end into your retirement savings account and match the same amount of contribution on your end.

Increase your retirement savings contribution as and when your income increases.

Save a small portion of your money for emergencies as well, cover between three to six months' worth of your essential expenses.

Invest a part of your retirement savings into tax-saving instruments such as Equity-Linked Savings Scheme (ELSS) or any diversified portfolio to ensure less exposure to risks and maximum returns.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.