Giving Compass' Take:

• In this story from Brookings, author William G. Gate discusses savings and wealth accumulation among millenials, which have been comparatively lower than previous generations.

• Are millennial shortcomings in saving and wealth accumulation due to economic forces or individual choices? How might philanthropists encourage saving and wealth accumulation among millennials?

• To learn about retirement saving experiments taking place in some states, click here.

The Millennial generation – those born between 1981 and 1996 and thus between ages 23 and 38 this year – is the largest living generation in the United States, recently overtaking the Baby Boomers. Millennials, who are about a quarter of the population, have been a constant source of controversy, with alternative narratives characterizing them as everything from noncontributory to revolutionary.

To date, Millennials have accumulated less wealth than most prior generations at the same point in life. The factors driving net worth for Millennials are also different than previous cohorts. For example, Millennials generally have higher student debt than prior generations but less consumer debt.

The Millennials have certain advantages over previous generations in terms of retirement saving; for instance, they are the most educated generation in history. Furthermore, because of the evolution of the pension system toward defined contribution (DC) plans, they may well work longer than any previous generation, giving them additional years to save.

However, Millennials also face numerous disadvantages. Their careers have gotten off to a rocky start because of the financial crisis and Great Recession. They will be employed in contingent workforce jobs ... They are marrying, buying homes, and having children later. Because of the shift to DC plans, Millennials will be required to manage and navigate their own retirement plans to a larger degree than previous generations, while also likely having longer lifespans. They will face increased burdens from any eventual resolution of the government’s long-term fiscal shortfalls in general, and the financial imbalances in Social Security and Medicare in particular. They face an economic future with projections of lower rates of return and economic growth than in the past. All these factors make accumulating sufficient funds for retirement more difficult for Millennials relative to previous generations.

Read the full article about wealth accumulation by William G. Gale at Brookings