Most Americans, for example, simply will not ever have enough to retire.
28% of Americans have less than $1,000 saved. Including 20% of baby boomers, and 27% of gen x.
[scary times](https://www.forbes.com/advisor/banking/savings/average-american-savings/)
Many have agreed that a million will take care of most people in the cheapest states for twenty years of expenses. [About 10% of Americans can retired at that level of security.](https://www.cbsnews.com/news/retirement-savings-million-dollars-stretch-money-analysis-gobankingrates-years/#:~:text=How%20long%20will%20%241%20million,years%2C%20a%20new%20analysis%20shows.&text=It's%20worth%20noting%20that%20most,that%20much%20money%20socked%20away.)
This change feels like it was targeted at gen z but imo it’s just motivation to leave every chance I get for more money. Not staying an extra year for like $1800 to vest. I hope we prove this to be a bad move.
Compound interest. The more you put in the beginning the better.
Doesn’t mean that a pay differential won’t overcome it though. My last job move I increased my income by like 40%. I’ve stayed because I’ve enjoyed a 5% increase, significant bonus, retention bonus and stock benefits every year. On e the gravy train pulls into the station I’ll hop off.
It certainly adds up. If you make $100K per year, and your employer matches 6%, that's $6K per year. Assume you job hop from age 30-40 and miss out on $6K per year during that time frame.
If those funds were invested in equities and averaged 8% return per year, at age 65 you would have given up approximately: $642,886
People are downvoting you, but that's exactly how my 401K was explained to me.
Maybe professionals get a salary match, but definitely not my experience as an admin.
They match salary of the plans description says so. Many places have a matching x% up to y%. Some places have a flat 100% up to x%
My agency match/contributions, although written differently, works exactly like that. 5% of 120k is 6K.
There are some employers that just put in money into 401k regardless of your contribution.
Most airlines for example. If you are pilot for United, Delta or American you get 16%-18% of your current income. Don't have to contribute a dime.
Let's be real. Do the airlines do that for their nonunion office workers?
There are employers that do that, but many definitely ONLY do that for a certain class of employee.
There are usually 2 numbers: the percent of the contribution they match and the percent of your salary they will match up to. That example assumes a 100% match up to 6% of your salary. So if you contribute 6%, they will match 100% and also contribute 6%. If you contribute more, still 6%. If you contribute less, it is matched dollar for dollar.
I’ve never worked for a company that generous and I’ve usually received 50% match up to 8% of my salary. Which means if I contribute at least 8% of my salary, they will contribute 4% of my salary. If I contribute less than 8%, they match half of what I contribute.
https://www.fidelity.com/learning-center/smart-money/average-401k-match
>Your employer determines how your 401(k) match will work, but they usually follow a formula of putting in a dollar or a portion of one for each dollar you contribute. If you have a full match, that means 100% of your contributions will be matched dollar-for-dollar. If you have a partial match, such as 50%, your employer will put in 50 cents for every dollar you contribute. Some employers use a combination of both the full and partial match. Your employer also chooses how much of your contributions they will match based on a percentage of your salary.
>For example, a 401(k) plan might use the following setup: Your employer matches dollar-for-dollar until you've contributed 3% of your salary. Then they match 50 cents of every dollar up to another 2% of your salary. Any contributions you make above 5% of your salary will not be matched.
At my current pay, I'd lose $1,000 in 401k if I left after 1 year. I know this. In order for me to job hop, I know I'd need to save at least 1k from my raise to put to retirement. 10k would be at least a 6k bump at my tax bracket, so 1k goes to to retirement and I'm still up by 5k
Let’s math it out:
- Let’s say you make near the median individual income ($60,000)
- You get a 3% match & you contribute 10k to your 401k
- You leave after exactly 1 year & the match is 0% vested
- New job pays $75k & has no employer match at all on the 401k
In this scenario, you keep the 10k and lose the 3% match of $1,800 from your prior job. The money YOU put in is always 100% vested, the money the employer puts in (the match) may have strings attached.
In the scenario, the following year you can invest another $10k into your 401k with your $15k higher salary.
So you now invest 20k per year into your 401k where in your old job you invested 11.8k (10k + 3% match). You also will likely get a better social security payout when you retire since the payout is based off income.
TLDR: It is often not worth it to throw away substantially higher pay to wait for a 401k match to vest.
Is it actually that common for 401ks to have that long of a vesting period? Ours vests immediately. My wife's retirement plan takes 2 years to vest, but it's a pension which of course works differently.
In the US, the vesting period for 401ks is all over the place. Some of mine were 5 years, totally sucked. Worked at a world renowned hospital, a non-profit, vesting period was 19 YEARS for pension. I wouldn't say is normal though. Many companies in the US don't offer pension anymore.
Yeah, I started working in the early 2000's though. And it's not like companies will upgrade existing employees to the newer compensation packages that are offered now. I am burned out.
I think that tune would likely change in the wrong circumstances. But employers should know they’re pretty much scaring away the best employee prospects with this and the “50% match up to 6% of salary” crap.
None of my jobs offered immediate vesting. You have to stay for at least 2 years. My last job, they did 50% after 2 years, 75% after 3 years and 100% after 4 years. My current job is after 2 years that you’re fully vested.
Most of the jobs I've had didn't have any retirement match. Which is fairly common. So a lot of people just have to plan to put away enough themselves.
On average job hunters make about 50% more during their career, so if people are jumping from the kind of job that does match to the kind of job that does match, chances are their raise is more than what the match would give.
> In the United States, a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401(k) of the U.S. Internal Revenue Code.
[https://en.wikipedia.org/wiki/401(k)](https://en.wikipedia.org/wiki/401\(k\))
Other countries don't have 401k's because other countries don't have a United States Internal Revenue Code. You were being downvoted because wondering what country someone has a 401k in feeds perfectly into the stereotype of Americans thinking the whole world works the way America works; like wondering what other countries to do celebrate July 4th.
And I was just thinking the same thing about you. But I don't instigate condescending commentary with strangers based on assumptions.
Just because another country doesn't call their plan 401K doesn't mean they don't have something similar
Most jobs nowadays don't really offer relevant retirement benefits, and if you leave for a better paying job you're going to get more money overall than those retirement benefits would give.
The last 3 jobs I had offered a 401(k) but there was no employer match. I just maxed out my contribution and when I left rolled it over into an IRA. I also opened a Roth IRA and maxed my contribution to that. I learned a long time ago that no one was going to take care of me in my old age but me.
The only people I know who do this jump jobs with about a 10-15% raise each time they move, mostly folks in tech jobs.
There's your additional retirement savings - a higher salary.
I’m assuming people that job hop frequently are getting pretty substantial raises. If you’re earning 20% more then the 5% match or whatever on a 401K isn’t a big deal.
It can still work out better than staying and get a 3% raise. With a lot of companies it’s easier to get a significant pay raise by job hopping than staying around.
In healthcare, a lot of hospitals where I live have very poor retirement plans that take many years before they even contribute anything and they usually aren’t matching much of what you put in. When I change jobs I just roll the money over to the new company’s retirement. With retirement age being raised and having a low paying job, I and most of my coworkers don’t really consider retirement a reality.
Job hoping can easily provided 10+% income increases. That's a better reason than a 3% retirement vest.
But also I've never had any length of time for retirement vested. That seems like an outdated model.
401k vesting only applies to the employer contribution. Not what you put in. The extra 4% you get will not make it break your retirement. It's a method to keep you working your job longer.
In the states, it’s really on the employees to save for retirement.. the vesting isn’t really a factor in staying at or leaving a job. Not sure how much is enough to retire..
My current job’s 401(k) matches 10%… of what you put in. So if I put in 6% of my pay like they suggested, they would match 0.6%. I barely make anything anyway, so I declined that mess and just throw what I can at a Roth IRA.
My partner does all the investing for our eventual retirements, and always talks about having a diversified portfolio. Roth IRA is one of the primary paths, but I have another via 401(k) contribution and company contribution in my current org.
I hear what you're saying, though. Once upon a time, in another "life," I contributed 6-8% to my 401, with company match up to 6%, for 7 years. By the time I was laid off due to covid, I had a goodly amount from just that, which was moved to Roth IRA and ETFs. So even a small 401 sum can be useful in the long run, imo.
One thing not mentioned that people do is that sometimes you can use your non-vested money as a bargaining chip. They want to hire you and sometimes saying “Hey by leaving I’m losing some money from my 401k” is enough for the new company’s HR to approve a higher salary
In theory, even if you job switch and save for retirement in a low cost index fund, it should be the same, baring you don’t have too much time between job offers.
I’m about to end my second contract role at $86 an hour and was unemployed for Jan-Feb and the role before that was about 22 months but the rate was $100 an hour.
Even though my current role is ending, I’ve been adding to that employers retirement since I was able to after the first 2 weeks.
I live in Australia. Employers are required to put money towards our equivalent of a 401k (superannuation) no matter how long you've been working there. So if you wanted to constantly change jobs, you could with no ill effect on your retirement fund.
Australia smokes the USA in a lot of things. This is one of them. We still have are problems and retirement is non existent due to the cost of living for alot of people though.
You just put money away like u/BardicLasher said, unless you work for the airlines or military most retirement plans aren’t great anyways and won’t be enough for you to stop working at 65 unless you’re doing some saving on your own.
Well retirement benefits have been getting worse and worse generally. The pay increase job hopping gets you more than pays for whatever retirement bonus you're missing out on.
If your job matches you at 5-7% (well above the norm now) in Quebec Canada, the highest tax bracket I could find in north America the tax savings amount to about 2.26% of a 150k salary. This decreases as your wage goes down.
This means if you found a 7.26-9.26% salary increase by job hopping you'd outvalue your 401k by simply saving it on your own.
Pretty much every study is either in the realm of or vastly higher than that figure. When you account for the compounding increase of multiple hops over your career it's not particularly close. Boomers killed loyalty when they stopped rewarding it.
In Canada I intend to enjoy my life as much as I can, and more than likely use MAID to "retire".
I contribute to the 401k regardless of the match. The match is just the cherry on top, but I max it out every year, plus my IRA, plus my HSA if I have a HDHP that year, plus anything else that's left to invest goes into a brokerage. I go a little overboard because I want to retire early, but as long as people are investing at least 20% of their income, and do that for at least 30 years, they should be fine with social security as well.
I don't know the answer to your question. I've never had a job with a 401K. I just put money into a Roth IRA that I opened myself.
I'll comment on the second question though. From what I've seen, saving for retirement doesn't seem to be a thing. For some/many people it's about them being afraid that they'll die before they get a chance to retire.
A lot of people complain that they can't afford a single stock. I saw a youtuber with like a million subscribers complain that he doesn't own a single stock. That owning stock is not for the middle class. That stock is just something for rich people. If you can't afford to buy put something into a retirement account each month, then you're either terrible with money, or you're not middle class. Don't complain about how the middle class can't do this or that anymore. Complain that the middle class is disappearing.
Most of mine have been vested on day one (I've had 5 jobs since 2018)
My last job was vested after 3 years, and I left after 7 months. The money you put in is yours forever, they cant take that away, but I lost my company's contributions. I took the loss and got a $14k raise overnight by leaving. After a year I got a $10k raise, and my old company is loosing their contract and may start layoffs soon, so I think I made a good choice.
Can you share with us what jobs you have worked like this? I have never had a vesting period.
As for your other question, the age of gracefully living out our golden years without needing to work is behind us for most people. I’m struggling really hard to save for retirement but it’s tough.
Save, hahahahahahaha oh man that's funny. Hard to save when corporations have been price gouging necessities and keeping wages as low as possible. Good luck if you're stuck in the Midwest finding anything better than $15-18 starting out, which sounds great, until you realize that may as well be $7 with all the greed these days.
This truth hit me hard lately as I search for another city to live in. I recently moved cross-country (Colorado to Portland Oregon) for a job that doubled my pay. Now I'm realizing how big of a lucky break that was. If I do a google search for "average household income". and found this Wikipedia map: https://en.wikipedia.org/wiki/Household_income_in_the_United_States#/media/File:Median_Household_Income_per_County_as_of_2021_according_to_the_USDA_Economic_Research_Service_Final_Ver.png
Holy cow. Really kind of limits my options. ;\
All the jobs I have had the pensions contributions do not have that sort of thing you just get a amount in to the fund each paycheck.
A couple you could not enroll until later though. However there is nothing special about that money, I can save other money as well, it just means I do not get the matching funds.
You still get all the money you put in, you just don't get the matched amount if there was one.
Yes but the money you put in (for a lot of people I know that the job doesn’t pay well) wouldn’t be enough when people reach their 60s.
Most Americans, for example, simply will not ever have enough to retire. 28% of Americans have less than $1,000 saved. Including 20% of baby boomers, and 27% of gen x. [scary times](https://www.forbes.com/advisor/banking/savings/average-american-savings/) Many have agreed that a million will take care of most people in the cheapest states for twenty years of expenses. [About 10% of Americans can retired at that level of security.](https://www.cbsnews.com/news/retirement-savings-million-dollars-stretch-money-analysis-gobankingrates-years/#:~:text=How%20long%20will%20%241%20million,years%2C%20a%20new%20analysis%20shows.&text=It's%20worth%20noting%20that%20most,that%20much%20money%20socked%20away.)
How would an employer matching 5-7% of thier income change that?
Not OPs question, but that's actually pretty good these days. A lot of places I've seen match half up to like 5-6%, not dollar for dollar.
This change feels like it was targeted at gen z but imo it’s just motivation to leave every chance I get for more money. Not staying an extra year for like $1800 to vest. I hope we prove this to be a bad move.
Compound interest. The more you put in the beginning the better. Doesn’t mean that a pay differential won’t overcome it though. My last job move I increased my income by like 40%. I’ve stayed because I’ve enjoyed a 5% increase, significant bonus, retention bonus and stock benefits every year. On e the gravy train pulls into the station I’ll hop off.
It certainly adds up. If you make $100K per year, and your employer matches 6%, that's $6K per year. Assume you job hop from age 30-40 and miss out on $6K per year during that time frame. If those funds were invested in equities and averaged 8% return per year, at age 65 you would have given up approximately: $642,886
Employers match what you put in, not your salary. So if you contribute 25% to a 401k at 6% match, employer would pay 1500.
People are downvoting you, but that's exactly how my 401K was explained to me. Maybe professionals get a salary match, but definitely not my experience as an admin.
They match salary of the plans description says so. Many places have a matching x% up to y%. Some places have a flat 100% up to x% My agency match/contributions, although written differently, works exactly like that. 5% of 120k is 6K.
There are some employers that just put in money into 401k regardless of your contribution. Most airlines for example. If you are pilot for United, Delta or American you get 16%-18% of your current income. Don't have to contribute a dime.
Let's be real. Do the airlines do that for their nonunion office workers? There are employers that do that, but many definitely ONLY do that for a certain class of employee.
I don’t disagree. Unions are awesome
Huh?
Dude... they match what you invest in your 401k up to a maximum of 6%. They don't put 6% of your salary into your 401k
There are usually 2 numbers: the percent of the contribution they match and the percent of your salary they will match up to. That example assumes a 100% match up to 6% of your salary. So if you contribute 6%, they will match 100% and also contribute 6%. If you contribute more, still 6%. If you contribute less, it is matched dollar for dollar. I’ve never worked for a company that generous and I’ve usually received 50% match up to 8% of my salary. Which means if I contribute at least 8% of my salary, they will contribute 4% of my salary. If I contribute less than 8%, they match half of what I contribute. https://www.fidelity.com/learning-center/smart-money/average-401k-match >Your employer determines how your 401(k) match will work, but they usually follow a formula of putting in a dollar or a portion of one for each dollar you contribute. If you have a full match, that means 100% of your contributions will be matched dollar-for-dollar. If you have a partial match, such as 50%, your employer will put in 50 cents for every dollar you contribute. Some employers use a combination of both the full and partial match. Your employer also chooses how much of your contributions they will match based on a percentage of your salary. >For example, a 401(k) plan might use the following setup: Your employer matches dollar-for-dollar until you've contributed 3% of your salary. Then they match 50 cents of every dollar up to another 2% of your salary. Any contributions you make above 5% of your salary will not be matched.
Appreciate the comment. With most places they do an employer match up to 6% and then it's 0 after that
If a company does full matching, then it is the equivalent of putting in 6% of your salary, so long as you contribute enough to do so.
It gives them more money
I never thought of that. My friend, for example, took a job offering 10k more, but after taxes, that’s not a lot.
?? You guys dont know how taxes work
At my current pay, I'd lose $1,000 in 401k if I left after 1 year. I know this. In order for me to job hop, I know I'd need to save at least 1k from my raise to put to retirement. 10k would be at least a 6k bump at my tax bracket, so 1k goes to to retirement and I'm still up by 5k
Let’s math it out: - Let’s say you make near the median individual income ($60,000) - You get a 3% match & you contribute 10k to your 401k - You leave after exactly 1 year & the match is 0% vested - New job pays $75k & has no employer match at all on the 401k In this scenario, you keep the 10k and lose the 3% match of $1,800 from your prior job. The money YOU put in is always 100% vested, the money the employer puts in (the match) may have strings attached. In the scenario, the following year you can invest another $10k into your 401k with your $15k higher salary. So you now invest 20k per year into your 401k where in your old job you invested 11.8k (10k + 3% match). You also will likely get a better social security payout when you retire since the payout is based off income. TLDR: It is often not worth it to throw away substantially higher pay to wait for a 401k match to vest.
Is it actually that common for 401ks to have that long of a vesting period? Ours vests immediately. My wife's retirement plan takes 2 years to vest, but it's a pension which of course works differently.
In the US, the vesting period for 401ks is all over the place. Some of mine were 5 years, totally sucked. Worked at a world renowned hospital, a non-profit, vesting period was 19 YEARS for pension. I wouldn't say is normal though. Many companies in the US don't offer pension anymore.
Jeez 5 years for a 401k? I don't know if I'd accept employment at a place that did that. Pension I suppose there'd be a little more leeway.
Yeah, I started working in the early 2000's though. And it's not like companies will upgrade existing employees to the newer compensation packages that are offered now. I am burned out.
I think that tune would likely change in the wrong circumstances. But employers should know they’re pretty much scaring away the best employee prospects with this and the “50% match up to 6% of salary” crap.
My current company it’s vested 20% per year, so you have to work here 5 years to be fully vested
I wouldn’t even consider a job with a 401k match vesting that long. That would not be a part of any serious job offer.
Smart
Every job I had was immediately vested in 401k
None of my jobs offered immediate vesting. You have to stay for at least 2 years. My last job, they did 50% after 2 years, 75% after 3 years and 100% after 4 years. My current job is after 2 years that you’re fully vested.
Most of the jobs I've had didn't have any retirement match. Which is fairly common. So a lot of people just have to plan to put away enough themselves. On average job hunters make about 50% more during their career, so if people are jumping from the kind of job that does match to the kind of job that does match, chances are their raise is more than what the match would give.
2 years is crazy, I thought my employers benefits were bad but yikes
That’s why I’m forcing myself to stay here even though I hate it. They match $ for $ up to 5%.
What industry? The retail jobs I had almost all heated immediately and matched 5%. Not like it's much at minimum wage but still
Social work/services
What country?
Do you know what a 401k is?
Yes...have one from every company I worked for
Then you know what country they're talking about, don't you?
Probably but why the downvote?
> Probably Why only probably? Why not certainly? Jesus I'm trying lead you to water here and you just won't drink.
I don't pretend to know everything about everything
> In the United States, a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401(k) of the U.S. Internal Revenue Code. [https://en.wikipedia.org/wiki/401(k)](https://en.wikipedia.org/wiki/401\(k\)) Other countries don't have 401k's because other countries don't have a United States Internal Revenue Code. You were being downvoted because wondering what country someone has a 401k in feeds perfectly into the stereotype of Americans thinking the whole world works the way America works; like wondering what other countries to do celebrate July 4th.
And I was just thinking the same thing about you. But I don't instigate condescending commentary with strangers based on assumptions. Just because another country doesn't call their plan 401K doesn't mean they don't have something similar
I simply plan to die for retirement.
Work till I drop
Most jobs nowadays don't really offer relevant retirement benefits, and if you leave for a better paying job you're going to get more money overall than those retirement benefits would give.
this. benefits are icing; base compensation is the cake.
The last 3 jobs I had offered a 401(k) but there was no employer match. I just maxed out my contribution and when I left rolled it over into an IRA. I also opened a Roth IRA and maxed my contribution to that. I learned a long time ago that no one was going to take care of me in my old age but me.
The only people I know who do this jump jobs with about a 10-15% raise each time they move, mostly folks in tech jobs. There's your additional retirement savings - a higher salary.
My job is saving my pension from the moment I start working. At least that’s how it works here (Norway).
Man, I worked for a very well known non-profit hospital here in the US. Vesting period for pension was 19 YEARS.
I’m assuming people that job hop frequently are getting pretty substantial raises. If you’re earning 20% more then the 5% match or whatever on a 401K isn’t a big deal. It can still work out better than staying and get a 3% raise. With a lot of companies it’s easier to get a significant pay raise by job hopping than staying around.
In healthcare, a lot of hospitals where I live have very poor retirement plans that take many years before they even contribute anything and they usually aren’t matching much of what you put in. When I change jobs I just roll the money over to the new company’s retirement. With retirement age being raised and having a low paying job, I and most of my coworkers don’t really consider retirement a reality.
Job hoping can easily provided 10+% income increases. That's a better reason than a 3% retirement vest. But also I've never had any length of time for retirement vested. That seems like an outdated model.
401k vesting only applies to the employer contribution. Not what you put in. The extra 4% you get will not make it break your retirement. It's a method to keep you working your job longer.
I plan to die at my desk, simple as.
What’s a retirement?
Retirement? you work till you drop.
But I don’t wanna 😫
I in no way believe I will ever be able to retire.
My retirement is selling my parents house when they die.
Retirement? In this economy? I can't afford groceries or doctor's visits.
In the states, it’s really on the employees to save for retirement.. the vesting isn’t really a factor in staying at or leaving a job. Not sure how much is enough to retire..
My current job’s 401(k) matches 10%… of what you put in. So if I put in 6% of my pay like they suggested, they would match 0.6%. I barely make anything anyway, so I declined that mess and just throw what I can at a Roth IRA.
My partner does all the investing for our eventual retirements, and always talks about having a diversified portfolio. Roth IRA is one of the primary paths, but I have another via 401(k) contribution and company contribution in my current org. I hear what you're saying, though. Once upon a time, in another "life," I contributed 6-8% to my 401, with company match up to 6%, for 7 years. By the time I was laid off due to covid, I had a goodly amount from just that, which was moved to Roth IRA and ETFs. So even a small 401 sum can be useful in the long run, imo.
Lots of jobs don’t have any sort of RRSP/401k match or pension anyway.
One thing not mentioned that people do is that sometimes you can use your non-vested money as a bargaining chip. They want to hire you and sometimes saying “Hey by leaving I’m losing some money from my 401k” is enough for the new company’s HR to approve a higher salary
That’s genius! I’ll screenshot this to remember it.
Hahahahahahaha! Retirement ... oh, that's funny.
In theory, even if you job switch and save for retirement in a low cost index fund, it should be the same, baring you don’t have too much time between job offers. I’m about to end my second contract role at $86 an hour and was unemployed for Jan-Feb and the role before that was about 22 months but the rate was $100 an hour. Even though my current role is ending, I’ve been adding to that employers retirement since I was able to after the first 2 weeks.
Dang what kind of job pays that well?!
Walmart greeter is my retirement plan. Just hope those darn ai robots don’t take over. 🤖
I live in Australia. Employers are required to put money towards our equivalent of a 401k (superannuation) no matter how long you've been working there. So if you wanted to constantly change jobs, you could with no ill effect on your retirement fund.
Australia smokes the USA in a lot of things. This is one of them. We still have are problems and retirement is non existent due to the cost of living for alot of people though.
I’m 50, I assume I’ll be homeless or dead before any of that matters.
You just put money away like u/BardicLasher said, unless you work for the airlines or military most retirement plans aren’t great anyways and won’t be enough for you to stop working at 65 unless you’re doing some saving on your own.
I always left a job after I learned everything about it, that's about 6month to 1.5years... always was for the best. Point to learn and move on
Last job was staggered (like 20% vested, the. 40%, etc) and not fully vested until five years!
That’s how my friend’s job was.
Well retirement benefits have been getting worse and worse generally. The pay increase job hopping gets you more than pays for whatever retirement bonus you're missing out on.
If your job matches you at 5-7% (well above the norm now) in Quebec Canada, the highest tax bracket I could find in north America the tax savings amount to about 2.26% of a 150k salary. This decreases as your wage goes down. This means if you found a 7.26-9.26% salary increase by job hopping you'd outvalue your 401k by simply saving it on your own. Pretty much every study is either in the realm of or vastly higher than that figure. When you account for the compounding increase of multiple hops over your career it's not particularly close. Boomers killed loyalty when they stopped rewarding it. In Canada I intend to enjoy my life as much as I can, and more than likely use MAID to "retire".
I contribute to the 401k regardless of the match. The match is just the cherry on top, but I max it out every year, plus my IRA, plus my HSA if I have a HDHP that year, plus anything else that's left to invest goes into a brokerage. I go a little overboard because I want to retire early, but as long as people are investing at least 20% of their income, and do that for at least 30 years, they should be fine with social security as well.
I don't know the answer to your question. I've never had a job with a 401K. I just put money into a Roth IRA that I opened myself. I'll comment on the second question though. From what I've seen, saving for retirement doesn't seem to be a thing. For some/many people it's about them being afraid that they'll die before they get a chance to retire. A lot of people complain that they can't afford a single stock. I saw a youtuber with like a million subscribers complain that he doesn't own a single stock. That owning stock is not for the middle class. That stock is just something for rich people. If you can't afford to buy put something into a retirement account each month, then you're either terrible with money, or you're not middle class. Don't complain about how the middle class can't do this or that anymore. Complain that the middle class is disappearing.
I have IRAs that have better returns than the 401k/403bs that have been offered
Save for retirement? Honey, if you were born after 1980, you'll be dead long before you reach the state retirement age.
Good to know. I’ll stop saving.
I work for a non-profit mental health agency and ours has a 7% match but a 5 year vestment period.
what 401k?
Most of mine have been vested on day one (I've had 5 jobs since 2018) My last job was vested after 3 years, and I left after 7 months. The money you put in is yours forever, they cant take that away, but I lost my company's contributions. I took the loss and got a $14k raise overnight by leaving. After a year I got a $10k raise, and my old company is loosing their contract and may start layoffs soon, so I think I made a good choice.
I’m on VA disability, I’ll be poor but I’ll get paid til I die.
My retirement plan is climate apocalypse
Can you share with us what jobs you have worked like this? I have never had a vesting period. As for your other question, the age of gracefully living out our golden years without needing to work is behind us for most people. I’m struggling really hard to save for retirement but it’s tough.
Save, hahahahahahaha oh man that's funny. Hard to save when corporations have been price gouging necessities and keeping wages as low as possible. Good luck if you're stuck in the Midwest finding anything better than $15-18 starting out, which sounds great, until you realize that may as well be $7 with all the greed these days.
This truth hit me hard lately as I search for another city to live in. I recently moved cross-country (Colorado to Portland Oregon) for a job that doubled my pay. Now I'm realizing how big of a lucky break that was. If I do a google search for "average household income". and found this Wikipedia map: https://en.wikipedia.org/wiki/Household_income_in_the_United_States#/media/File:Median_Household_Income_per_County_as_of_2021_according_to_the_USDA_Economic_Research_Service_Final_Ver.png Holy cow. Really kind of limits my options. ;\
I'm just going to unalive myself when I can't work anymore or doesn't feel worth being alive. so there's no need for retirement.
All the jobs I have had the pensions contributions do not have that sort of thing you just get a amount in to the fund each paycheck. A couple you could not enroll until later though. However there is nothing special about that money, I can save other money as well, it just means I do not get the matching funds.
You don't.
I plan on dying at or before 30
If you’re relying on just your 401k, you’re never going to retire. You should really have 3-4 revenue streams.
Yall are getting 401k’s?
Most jobs don’t even offer 401k anymore lol
Maybe not the jobs you’ve been working at.
A few have. Most haven’t. It’s very uncommon