More people 29 years old and younger have increased savings levels by 2.29 percent in the first quarter in MassMutual's Retirement Services Division, according to Plansponsor.com
Women also increased their future tax liability, or deferral rate, twice as much as men in the first quarter. This year, women's account balances now trail men's by 38.8 percent, down from to 40.5 percent at the end of 2010, according to the article.
"Deferral percentages are up, with the greatest increase coming from Gen Y, and participants are letting their money work for them by avoiding loans, withdrawals and other behaviors that can have a negative impact," said Elain Sarsynski, executive vice president of MassMutual's Retirement Services Division and chairman and chief executive of MassMutual International LLC. (Gen Y refers to those born in the mid-1970s to early 1990s.)
Participants are realizing the negative, long-term effect that borrowing against retirement savings can have, Plansponsor said.