A new survey shows the significant gap between how much millennials expect they need to retire ($1.7 million) and what they’ve roughly saved so far ($63,000)
Also $1.7m today is like $4m by the time millenials hit retiremwnt.
My company’s 401k person came in to sell their wares, and I did that inflation math in front of them. I think I made a lot of employees afraid for their future.
If you put your money in index funds, you can expect it to beat inflation by about 7-8% on average, especially over the course of a decades-long working career. It’s usually not worth it to ever look at the non-adjusted projected value.
Did they even match? No match is madness.
50% up to 6% (so 3%). But its vested over 5 years… which is a middle finger if you ask me.
Is that vesting for each contribution? For every company I’ve worked at, it’s 0% vested until X years, then 100% immediately vested for all contributions.
It’s 20% per year. It’s not… bad… but this 401k is going to be a joke when I retire.
My company is similar, but over 3 years. It’s a weird way for them to save a few thousand bucks per employee who quits (since you get the full amount by the 3 year mark).
Or gets laid off… if they fire them, they should have to pay 100%
63000 saved?? Yeah sure. Just checked my bank account and I got a whopping $27 in the savings account.
Im guessing they used avg and not median
Hey at least we have social security to look forward to, right guys? Haha…right? Why you looking at me like that?
Nearly three decades ago, I remember my grandpa being pissed about proposed changes to social security which were supposed prevent it from going bankrupt. When I asked what his solution was, he said that he paid into the system his whole life, and they owe him the full benefits he was promised. He got a lot more pissed when I asked if he was fine with me paying into the system my whole life and getting nothing, but he didn’t really have an answer. And somehow, I’m sure he thought he won that argument.
Ah, yes. The plans laid out by the ultra wealthy bear fruit. We blame and shame each othe while they pay no taxes! Mr. Burns would be proud.
Remember that just five years ago, Trumpcsigned a tax bill that gave the wealthiest amongst us a collective two trillion dollar tax cut that cost me the home interest and local tax deductions i depended upon. My crime was living in a “blue state”.
Many many years ago I realized that there would be no social security by the time I retired. Lo and behold Social Security will only pay 70% of its dues 3 years before I retire.
The good news is I’ve been saving for retirement since the age of 25. The bad news is there’s been a plethora of problems that have restricted my ability to save.
Thankfully, I I’m in a way better place than most people. Unfortunately I am still going to fall short.
Same…same. I’m a father of three, single income. I put away about $350 a month into a 401k for retirement. It’s not enough, but between housing, fixing things that break, health coverage, etc. it’s the best I can do.
My plan for retirement is suicide.
Remember don’t be selfish. Take a boardroom down with you.
I will admit the idea has crossed my mind. We will see where things are when I plan to retire.
You don’t say
Serious question: Has there ever been a non-violent solution a situation this dire?
Follow-up question: Would this problem be fixable if conservatives were removed from the equation?
…this is news?
I’m not saying my retirement plan is a fantasy, but it was last seen hanging out with Bigfoot and a mermaid.
This really comes down to who has and hasn’t saved. If you are a millennial that regularly saves into a retirement account you are probably looking good because the market has been good. But not a lot of millennials save for retirement which is the problem. Some of that is low wage, but some of that is bad spending habits.
Housing on the other hand is totally fucked for millennials regardless of what you are saving. If you got a starter home you are unable to sell and upgrade with decent rates. If you are first time buyer there is no inventory for starter homes because folks can’t afford to leave them even if they want to.
i love how common sense and self-responsibility get downvoted to oblivion on lemmy.
vast majority of millenials in my area have high wages… they just spend more than they make and whine about it. they refuse to become adults and save.
sure, if you live in bumfucksville and you are a cashier at a gas station with a HS diploma, yeah you can’t save. but if you’re a programmer who is 35 and living in debt, that’s your own damn fault, nobody else’s. where I live most millenails are the latter, and 75% of their conservations are whining about life is unfair because they can’t get the 5 million dollar home in the elite town they want.
I think the personal responsibility experiment of 401k’s is proving to be a failure. Yes, responsible people with sufficient incomes are somewhat at fault for not using the available retirement vehicles. But if individuals can’t be trusted to tend to their own future, we should probably be mandating retirement savings. And with that increasing minimum wage and considering UBI’s to make it reasonable for people save and have money in retirement.
But thanks for the sympathy for the downvote brigade. Merely suggesting personal responsibility seems to bring on the hate in lemm personal finance discussions. I have coworkers and friend’s with 6 figure incomes, top 75% of USA household incomes. They hardly use their 401k’s and use Roth IRAs when they have the means to be maxing those out.
I mean, I don’t disagree with you, but we both know people will reject that as government overreach and call it socialism. Esp in the USA culture, people are in love with their own ignorance above all else and will justify to you how their 10 year car loan is ‘worth it’ despite the objectively poor choice that it is.
My favorite irony is telling people I use savings and 401K matching and them telling me that I am ‘wasting money’ saving/investing because ‘you’ll just die of cancer in the future before you can spend it’. It’s just… pure bitterness and a willful lack of self-respect.
I love the comments in these discussions that are like “Fuck hedge funds, fuck investing, fuck the stock market, fuck 401ks. Bring back pensions.” And then I have to explain that pensions are investing in the stock market and actually own like 20% of common traded mid and large size company stock. Apparently folks want the benefit of being in the stock market without the personal responsibility to do it themselves, but in the process get to hide their guilt of personally investing in the market themselves. But that’s okay, and that’s why I think we probably should have mandatory minimum retirement savings and investment programs.
I’ve got a quarter of million in my retirement fund and it’s got another 30 years to go before I retire. I’m good, thanks. I also bought a place a few years ago.
But I didn’t spend my 20s partying and living in debt like many of my peers. I lived simply, paid off my student loans, and started saving. They made their choice, now they have to live with the consequences. each iphone you buy, each grubhub you order, each vacation you take… is money you are spending now that could be in your retirement account.
I’m sick of hearing about whiny idiots who refused to grow up and learn to save who are mad they have nothing in their bank accounts… because they did… they just choose to spend it all on vacations, booze, and grubhub. and i’ve been working steadily instead of fucking off every year or two to ‘travel the world and become worldly’. if you are quitting your job every 18 months to fuck off for six… it’s no wonder you’re not getting a good wage.
You are placing a lot of unwarranted faith in remaining healthy into retirement and your savings being enough for whatever situation we face them.
My dad decided to save up and wait until retirement to do some travel he wanted to do. A couple years later he has a major health issue and is unable to travel like he wanted to.
I don’t begrudge anyone enjoying themselves with the time they have while they are young and healthy.
So what should I assume? that’ i’m going to get cancer in 5 years and therefore spend everything i have now so i can start living paycheck to paycheck? on what? hookers and blow? travel? stupid shit that will give me a few moments/days of happiness now so i can live in poverty in my old age?
life is about choices. make your own. but don’t expect them to not have predictable consequences and get mad that those consequences happen. I made mine. and i do very much begrudge bitter people who made poor choices who blame others for making good ones that benefit them life-long.
all i see in these articles is wealthy folks whining because they have no self-respect and no self-control and want to blame other folks for it rather than taking charge of their lives. but hey, i’m a ‘privileged’ asshole who has had to deal with early parental death and my own serious medical issues that made me realize nobody is bailing me out of my own shit in life other than myself.
Sure, it’s all about choices. You’ve made your own. Hopefully you’re able to enjoy your retirement. But if those choices don’t work out, hopefully you’re not bitter and blaming others.
i have a lot to be bitter about to compared to my peers. and i chose to take that and do something positive with it and contribute to the world.
and yet they are the ones whining about life isn’t fair and mean to them. ironically these nitwits are also against ‘government handouts’… except when the handout is to THEM. then they are all for it.
You sound quite embittered. Try taking a vacation.
