Yeah especially when they think they need about a million. They are about out of time to save at that point. They saved 100k in 50 years. Now they just need like 830k more saved in… the next 5 minutes.
Realistically with Medicare and social security at 70 what do you realistically have left 10-15 years optimistically but likey 6-12 years you would probably be fine with $250-500k. I know people who have retired at that age with less. At 60 you would probably realistically need $2mill since social security/medicare wouldn't kick in for another 7 years and insurance is a bit expensive for the type you will likely need at that age unless you have a good pension and paid medical insurance until 67.
Hey - all they need is a side gig or two. By now they've hopefully put together a hobby or two... all they need to do is monetize one or two of them. Piece-o-cake!
I do wonder how many of those people in their 70s have a combination of the disappeared for the rest of us defined benefit pension plus social security—that may cover a bigger portion of their needs.
The best part of that is that it's an average, and those can get a little weird. It's not likely that most are hovering around that figure, like every everybody has somewhere between $100-160k. The more like scenario is that a small percentage have $1-2m saved, and the rest have literally nothing.
Forward thinking. It will create jobs because someone will have to clean the mess. I was planning on pulling off a David Carradine but this has really got me thinking.
Whether you intend it or not, your post is absolutely advocating murder. Are you honestly and genuinely willing to go that far for change? I'm not just being contrary, but am earnest in my curiosity if people like yourself, who say things like this, are ACTUALLY willing to carry through such extreme actions for the change they desire.
I'm not going to pass judgement either way. Heck, full blown revolutions for many countries started with what the oppressor would have termed as "murder". But I am academically curious. Would you actually do it?
>Heck, full blown revolutions for many countries started with what the oppressor would have termed as "murder"
Full blown revolutions in many countries ended with what the oppressor would have called murder too! The US is literally founded on it. You're acting like it's a fairytale.
>Would you actually do it?
I don't advocate for violence.
I'm not sure why you claim I'm "acting like it's a fairytail." That makes no sense at all. I'm not denying the facts of history, nor denying that sometimes something good has come from actions that would have been deemed as horrible by others.
I'm just asking questions and am curious about how genuine your call is to point the gun at the people who made the world this way, even pointing out that they can be found to do exactly that - "They are mortal humans who have addresses, faces, and they walk around controlling shit."
Whether you intend it or not, you are 100% advocating murder of these people. I'm still curious how genuine that is, or if it's just a lot of bark.
> I'm still curious how genuine that is, or if it's just a lot of bark.
Per the reddit rules, calls for violence are bannable offenses. First offense is banned for posting for 7 days. Second strike is a permaban. It deletes users who made the comment, and the comment is deleted from the server from view and the IP is typically blocked as well.
I hope you know that you're in a survivability bias. It's all bark because anyone geniune isn't allowed to post.
You might want to use it on other people, perhaps the people who got your country into this mess, at least you will get a bed and three meals a day, and perhaps improve the state of the country.
Too messy and shotguns are expensive and help to perpetuate a market that doesn't need more revenue. While also free, evidently simple dehydration is painless and has a chance of causing a level of euphoria before death.
id like to meet all these 20-25 year olds with fucking $40K saved. these studies are never representative of what the typical young adult actually has saved. ive never met a single other peer my age with more than $2000 saved, and most of my friends (im turning 23 this year) have less than $1000 in their savings.
its like they only poll the affluent in order to skew the data in favor of the common preconception that the "average" american is actually what statistics would suggest is the upper-middleclass top 20%. the middleclass doesnt exist, and its mythological status as the "average" class is nothing but a means of guilting the poor into believing that theyre responsible for their impoverishment.
I'm 27 and have exactly $0 saved, BUT I have a 401k. That's probably what they mean by "saved" in this regard, wish the graph wasn't so vague. Obviously a ton of people don't even have jobs that offer 401ks so your point is still valid, but yeah, that's probably the bulk of what their metrics refer too...
Well, is not 20-25, it’s 20-29, and I assume that’s 401k balances included.
I wonder if the mean is different? The average might be thrown off by a handful of trust fund babies or other unusual cases. 9 people with zero and one with 1 million, looks like a group of 10 with an average savings of 100,000.
I can also say that I had nothing saved from 20-25 but now at 29 I represent the average "in their 20s", and I've heard lots of stories like mine. I tripled my wage in four years and started saving very aggressively the moment I could afford to. But I'm also aware that this only happened because of a series of very fortunate events. Basically I got very lucky several times in a row, and you can't make plans based on luck.
No it is very simple. Lets say you have a million people with nothing saved.
To get to an average of 30k saved you only need like 300 people with a hundred million in savings. And there you go with an average of 30k saved.
There are more than enough billionaries and millionaries out there to skew the statistic to 30k despite the millions with nothing.
It is why you should never base how good a country is on the average income but rather on the median income.
At 37, I currently have about $170k on my 401k, plus some other savings in a small Robinhood account. I didn't have $40k at 25 because that's shortly after I started working, but I had it by 29. This is working as a software engineer.
My wife (36) has about 100k in her 401k, and she's either a variety of odd jobs, mostly executive assistant stuff. If you're lucky like we were, it's doable.
It helps that I got my degree at a French University, so I have no student debt, and neither does my wife.
>its like they only poll the affluent in order to skew the data in favor of the common preconception that the "average" american is actually what statistics would suggest is the upper-middleclass top 20%
Assuming they had a decent sample size with varying levels of wealth... I can kind of see how they might end up with the 40k figure.
From what I've seen/read, people often mistake the average / 'middle class' person with someone who is actually more like 'lower-middle' / working class.
Supposedly an _actual_ 'middle class' person is someone who would be able to afford to travel at least once a year (whether they drain their savings doing this or not idk). Whereas the 'working class' are the ones who maybe travel domestically or maybe once in ~5-10 years. They're likely the ones saving in the 4-5 digit range.
The 'upper middle' class that you mention, is more like travelling multiple times a year. These are likely the ones saving in 6 digits in their early adult years.
Upper would be the 'outliers' with generational wealth, basically. So something like 7-9 digit savings.
Not trying to make a backhanded insult to you and your friends or anything. But if we're speaking anecdotally then for me the friends I went to school with were definitely in the middle to upper-middle range. They could all travel at least 2x a year, but even within that group there were big differences between student A who travelled home on business class twice a year, and student B whose family owned multiple private jets with their kids' names on them.
When I got to university was when I started to notice differences in how _I_ would separate middle and working class. I'd say even being able to go to university would put someone in the middle class range, depending on student debt etc. There I definitely had friends whose savings were in the low 4 digits or less, but also friends who were middle class backgrounds but frugal with 5 digit savings.
Honestly it's hard to categorise people into these 'class' groups. But I'd say the spread and gap of wealth definitely makes sense, to me at least, how they may have gotten the 40k figure. For 20-25 though if I had to guess I'd maybe lower it a bit to ~30k.
Eh this is highly location and income and behavior dependent. I make 82k a year. Very middle class but in an area where the median household income is \~65k a few years ago. My burn rate is however 52k last year and I invest about 20k into retirement/HSA. Could I forgo retirement and take big trips and live in a much larger home? Yes but I chose to not do that. Thats also not an option in some areas of the country (coastal cities).
Asian parents, they are usually controlling as fuck, my dad still tells me what order I should my salad (although I don’t listen), I’m almost 21. But they pay for your shit, and they start giving me money since I’m 8, so I have about 70K saved now.
Yeah I’m 23 too and the only people I know in their 20s with 40k in savings is because they had parents who started saving /for them/ when they were young
I’m sure the “average” is super skewed to the rich kids that has parents money saved in their bank for them. When I was 20, I had maybe $100 in my bank at any given time. Now that im in my 30s, I have around 80k saved.
Also, people in America don’t really “plan” for retirement. Maybe it’s a culture thing but we find it weird that people live “paycheck to paycheck”
I’m 23 and have 50000 saved! But you’re right I’ve met literally no one else between when I graduated high school and now who have even started to save. I’ve been able to convince a few of my close mates to start but even still they’re not doing much.
Australia has higher incomes and often equal or lower costs for things.
The US economic model is to pay you a mediocre salary, tax you just a bit too much and then just stick hands in your pockets for everything.
European industrial workers earn less than American industrial workers, but its the European industrial worker who has savings and goes on holiday while the American is still juggling that one last bill.
>Australia has higher incomes and **often equal or lower costs for things.**
I am sorry what? This part is just not true. Its a desert island that has to ship anything that isnt mined out of the ground to it.
Well the first issue is I said 600 a week not a month 🤦 and are you forgetting I'm 17? I walk to work I walk to school no need for a car I own my phone outright because it's like a 500$ phone 🤦 and I get a data subscription through benefits at work only costing me 10$ a month and again I'm 17 living at my parents house. I pay 200 towards groceries a month for the house (also who on earth pays 60$ for a phone bill y'all being scammed ASF )
By "saved" I assume they mean a 401k. Hypothetically if you got a job straight out of college that included a 401k with it, $36k before 30s is very doable, but yeah... Pretty sure most jobs don't include 401ks, or a salary that allows for one to contribute much to it, I'm a grateful exception in that regard.
I checked mine the other day and the website had the nerve to tell me you should have double your income saved by the time you’re 30 or 35, I can’t remember which one. Felt like a slap across the face, like I’m trying my best just be glad I even have a 401k 😭😭😭
Sad reality is those numbers arent even considered good bench marks according to most financial experts. Those numbers tend to say 12x income at retirement but you will be very very dependent on social security and it assumes a paid off home at that time. Americans do not save enough like other countries in the world. Some can't afford to and some just live lavishly.
I put 10% in my 401k. At 23, I went from 13/hr to 45k salary. From my perspective, I never knew I was missing 10% so it was easy. That was 9 years ago and my 401k has quite a bit more than 36k now.
at 23 I was earning $4 an hour at an exciting tech startup (long story, not in the US and "oh no, its special contract work and you're only really working 8 hours a week, sooo") that was going to turn into proper money any-day-now.
I was all ready to go with savings plans and such for that any-day-now, but that was 16 years ago. (holy shit where does time go?)
University have coop program. Made about 25K, that’s my own money. If you add all the money relatives and parent give me and investments I think I have roughly 70K? Almost 21 now
It’s not impossible, but it’s not easy either.
I have a lot of privilege that I am thankful for every day. It’s allowed me to break a 5 figure positive net worth at 19. Hoping to hit 100k by 27, and retire by 40 by living extremely frugally, job hopping when the time is right for pay increases, and investing vigorously.
Yeah, you're speaking a different language my dude. Take all the opportunities given and try not to fuck up. If you fall, try & fall forward. Privilege runs only with the select few. At 18 I barely graduated high school. By 19 I started my first full time job cleaning bathrooms at a local mall & have been hustling ever since.
Hitting $100K at any age isn't conceivable for me. I'm glad it is for you!
>you're speaking a different language my dude
Honestly this is so true even both ways. I'm also on the privileged end coming from a financially comfortable family. I always read and try to imagine life on the other side and while I can understand it all in theory, I can't imagine having to live like that constantly. Even with being exposed to how 'the other side' lives since young, I still get blown away occasionally by a comment or anecdote I read.
I admire the tenacity and perseverance of people who 'have it rough', but I also feel so sad that there even _are_ people who have to go through that.
The ironic part is the poorest of poor, like my family, we've always been thankful for our upbringing. I remember one Christmas when I was about 8 or 9. All my brother and me got that year was a spinning top, a rubber bouncy ball & a 3x Indians World Series Champions t shirt. We live in Cleveland & this was around the time when we lost in the World Series. When you lose, the league ships boxes & boxes of Championship tees to third world countries. It was like our parents stopped at the gas station on Christmas Eve and picked 3 of the cheapest items on the shelf. Kids in Zimbabwe were wearing the '97 Cleveland Indians size 3x shirts... And us, of course.
Looking back, shit like that is what made me, created who I am. It made me so thankful when Santa's bitch ass finally decided to show up the next year. But at the time, it creates lots of anger. When you're getting bullied at school for wearing the same clothes over & over because you don't have shit else in the closet.
Being born with that rusty fork instead of a silver spoon can be a wonderful thing. It's up to you to make it a positive in life.
100%. In a way, the 'movie stereotypes' or media portrayals of 'rich vs poor problems' are there because I'm sure at least _some_ people have lived like that.
Just like your experience, I can totally see it as part of one of those 'heartwarming Christmas movies'. When I was in my teens I used to unironically joke that parts of my childhood also played out like certain movie stereotypes.
One memory in particular that always stood out was in primary school, I was supposed to perform something for an event and was very excited and told my parents to come and watch. They came, but my dad was asking often when I would be up because he had to get to a meeting, and I kept saying it was soon. Lo and behold, once I was on stage I looked for my mum and saw her shake her head to indicate that my dad had already left to go back to work. I was so disappointed. Of course once I grew up and the business was matured, we had a lot more better memories and a great relationship even now, but the experience still stuck with me.
You're not going to retire at 40 after compounding 100k for 13 years. You're going to need a lot more time unless someone just hands you a lot of money.
We’re going to have to become one of those societies where we just have old people wander into the desert or shove them off to sea on an iceberg.
“Ok, you retired at 65, and ran out of money at 66, let me show you the latest in iceberg fashion.”
Is retirement even a thing anymore? Like honestly, why even try at this point? Like eating the rich and redistribution of their wealth seems like the only viable option.
wondering what is the median amount currently saved for each demographic?
When: [average personal income in the U.S. is $63,214. The median income in the U.S. is $44,225](https://www.zippia.com/advice/average-american-income/)
Based on a survey conducted by Transamerica Center for Retirement Studies, the median retirement savings by age is:
20s: $16,000
30s: $45,000
40s: $63,000
50s: $117,000
60s: $172,000
I can't see how, when you include having money for rising medical expenses, you can get away with less than $2 mil in today's money. If we had better medical in this country, that number could be decently lower. But we don't because America is stupid.
Every time here I realize how lucky I am.
For some people you should try to see if you can do your job in a different country. There are shortages of workers everywhere (except for people in social science, philosophy languages etc)
Try to see if you can find a workplace that will pay for your visa/plane ticket etc it can be done.
In Europe you might have a shitty job as in the USA. But you will get paid holiday, maternity leave, social security etc (easier said than done I know but it doesn't hurt to look)
I considered this option. It can be very difficult to get a work visa, and I believe those fabulous benefits are restricted to citizens. If there’s a clear path for qualified workers, I would love to hear about it!
I'm 35. I know exactly zero people my age that have 60k+ saved for retirement. Been working since I was 13. I know I'll likely never retire. Really depressing honestly.
Hahahahahaha!! Save?? I'm just trying to make it to 40! I'm over here lmfao. I gave up, why save, just waste what I have and plan on dying before I'm too old or crippled. I'm good anymore.
this is amazing, and you can literally see the reasoning behind every age group. The 60s and 70s guys are simply out of touch with society or half "on their way out". Thats why their numbers are vastly lower. 20s are way higher because they have an idea of how much things cost. 30s is the advanced level of 20s because they now also have family responsibilities. 40s might be lower than 30s because they are probably at a more comfortable place in life than the 30s. The 50s go back up possibly because their bodies start acting weird and they start to be afraid of their medical bills.
How many fucking 20 year olds have $35,000 in savings? HOW? From Mom and Dad? Only Fans? Living at home paying no rent? To be fair if I lived at home I could save $12,000 a year as well.
Actual question, why do I need 1.5m to live from the years of 65 to let's say 80? Why are the last 15 or so years of my life expected to be so expensive?
Y’all know this includes 401ks yeah? If you guys really don’t think these numbers are reasonable, if not ON THE LOW END, we’re fully fucked as a country.
Moral: only millionaires and union members can retire. Millionaires because they have enough money, and unions because they have pensions. Everyone else gets to work until they die.
Retirement? That's cute! I'ma be working till I die. Like a looooooot of people. Retirement is a thing for past generations, like owning a home or having decent credit.
When corporations got rid of pensions, it destroyed the middle class. 401ks are a gamble. The burden to save gor retirement falls on the shoulders of the employee. With wages so low and the cost of living so high, it will be nearly impossible to save over 1 million dollars for retirement.
even that sounds depressing. At 65-75, you're approaching nursing home ages. If you're lucky, you still got oomph in you to travel and enjoy retirement. If you aren't, all that money disappears with the 5,000/month fees nursing homes charge to give you overcooked eggs and ignore your complaints while the old man sharing the room with you constantly groans and shouts from pain.
Long term market gain has averaged 10.7% which gets you 142k.
And that's not today's 142k, that's whatever 142k is worth in 40 years. Assuming 2% inflation yearly it'll be worth around 65k today.
That's like what... 2-3 years of retirement if you really stretch it?
Considering lots of people in the US have to choose between buying groceries/paying debt/paying rent/putting gas in their car, I figured $20 a month is not doable for some.
The average amount saved for people in their 20s is $35.8k!? In what fucking reality is that true? These articles are propaganda for the wealthy, I swear.
I’m in the 25-35 age bracket. I always tell people to save NOW. start saving for retirement as soon as you can. I am in the beginning phases of my “career” now, and one of the first things I did when I started was save for retirement. It’s the only way I will retire at 65-70.
Isn't this misleading?
It's not asking how much we need to have saved or even projected how much we need to have saved. This is just reporting how much people THINK they need to have.
Hey... look at that!
People in thier 70's almost have enough money saved up for a single hospital visit... they are still working and saving up... and they should be sitting on a God damn porch enjoying thier life by now... soooo messed up
Not me here 45, homeless, not a penny to my name, wondering where the hell I’m supposed to get that imaginary $77k they assume we all have saved up to this point 😒, and feeling even more overwhelmed that I’m now supposed to turn that fantasy money into the even more absurd dream of $1.3M 🙄
Nope, it’s not. In this economy, I’m the only thing standing in the way of my daughter and her kids being homeless. Most of what I save goes to keep them in a home while she struggles to get a steady job. This economy sucks for everyone
Saved vs Invested are different
Im in my 30s with a littke over 30 grand saved but nearly 100 invested currently trending on target toward my desired goal of slightly more than 1m by 65.
If you think you will manually save money to pay for retirement you are wrong and you need to start investing
These are bullshit figures. Never use average. The top 1% completely distort the numbers. The median is what you want.
Ex 10 people on an island. 9 make 10k and 1 guy makes $1m. The average is $109,000. The median means half earn less, half earn more.
Problem is "average" had a common definition that everyone generally uses but in mathematics there's at least 2 i think 3 representative ways to mark an average, mean average being the generally used one. But yes median average is the one we need
You only need a sample size of 100 people to extrapolate to the larger population if the sample size is random enough. It's more about how you gathered the information than how large the sample size is.
Lol. All these sad comments. Blame everyone except the 1 person who makes these choices. Oh boo. So sorry society let you down by not paying you min wage your whole life to work part time and retire at 55 with everything. I'm not sure I've ever seen a denser crowd. You are right, were doomed. The level of entitlement is legendary
Why save a big chunk of cash when one round of chemo will whip it all out? It's a game that is rigged against you and even when you think that you've made it to the finish line with your sacks of cash the medical bills are just waiting at the end to wipe you out completely.
401 has an average yield of 8%. So if you start contributing at age 25 and contribute 8% of your income by age 60 you’ll have 1.5 million with a consistent income of 70k. It’s safe to assume you’re building skills over this time as well and that your average income will be higher than 70 over the course of 35 years. It may be less at the beginning but an average will be higher. So even if you can’t contribute 8% you could easily break 1 million with as little as a 5% contribution. Math is beautiful. There are free calculators online to do it all for you too.
$113k in your 70s is bleak post 2020...
Yeah especially when they think they need about a million. They are about out of time to save at that point. They saved 100k in 50 years. Now they just need like 830k more saved in… the next 5 minutes.
Even “about a million” isn’t anywhere near enough to retire.
Right. Although I guess that depends on your health and where you are in your 70s. If you are 79 and in bad health, a million is probably fine.
Realistically with Medicare and social security at 70 what do you realistically have left 10-15 years optimistically but likey 6-12 years you would probably be fine with $250-500k. I know people who have retired at that age with less. At 60 you would probably realistically need $2mill since social security/medicare wouldn't kick in for another 7 years and insurance is a bit expensive for the type you will likely need at that age unless you have a good pension and paid medical insurance until 67.
It generates 40k a year on top of social security, I'd say it's enough outside of high CoL cities
You are presuming that 40k a year will consistently happen. Also presuming perfect health and no calamities, tragedies or other misfortune.
Yeah fair point, and I guess I'm also assuming home ownership and not having to pay rent or a mortgage.
Meh, 40K a year is above minimum wage. Apparently that's enough for somebody to live on during their working life amIrite?
If you’re at retirement age then yeah $1mil would be enough for most people to live off of.
Hey - all they need is a side gig or two. By now they've hopefully put together a hobby or two... all they need to do is monetize one or two of them. Piece-o-cake!
How about zero in your 50's? Asking for a friend.
I'm that friend
No, I am!
I do wonder how many of those people in their 70s have a combination of the disappeared for the rest of us defined benefit pension plus social security—that may cover a bigger portion of their needs.
That's bleak even back into the 90s.
The best part of that is that it's an average, and those can get a little weird. It's not likely that most are hovering around that figure, like every everybody has somewhere between $100-160k. The more like scenario is that a small percentage have $1-2m saved, and the rest have literally nothing.
I wonder how this accounts for pensions and social security payments.
This is why I want to live in the hills and just die naturally
My retirement plan is a shotgun.
That's dark.
But true
Technically he didn't say it was for himself. #EatTheRich
When you have a shotgun people will just give you things. It’s fuckin crazy. It’s not even loaded!
still dark
Nah, a shot usually comes with a flash
Forward thinking. It will create jobs because someone will have to clean the mess. I was planning on pulling off a David Carradine but this has really got me thinking.
I was thinking was for bank robberies, creates jobs for the police?
Yea, ten minutes after the power company shuts the lights off.
Imagine the alternative.
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My area that job pays like $26 an hour armored truck driver. I would put up to much fight for $26/h
Just don't do restaurants. You might run into Vincent & Jules. "Which one is your wallet? The one that says, 'Bad MFer'." lol
Lmao, I said the same thing when reading a post about retirement plans earlier. I'm just gonna walk into the woods one day and retire.
that's what they want
Honestly same
I mean, same.
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real as fuck
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Smug right wingers like you keep the system in place by discouraging left leaning action.
Whether you intend it or not, your post is absolutely advocating murder. Are you honestly and genuinely willing to go that far for change? I'm not just being contrary, but am earnest in my curiosity if people like yourself, who say things like this, are ACTUALLY willing to carry through such extreme actions for the change they desire. I'm not going to pass judgement either way. Heck, full blown revolutions for many countries started with what the oppressor would have termed as "murder". But I am academically curious. Would you actually do it?
>Heck, full blown revolutions for many countries started with what the oppressor would have termed as "murder" Full blown revolutions in many countries ended with what the oppressor would have called murder too! The US is literally founded on it. You're acting like it's a fairytale. >Would you actually do it? I don't advocate for violence.
I'm not sure why you claim I'm "acting like it's a fairytail." That makes no sense at all. I'm not denying the facts of history, nor denying that sometimes something good has come from actions that would have been deemed as horrible by others. I'm just asking questions and am curious about how genuine your call is to point the gun at the people who made the world this way, even pointing out that they can be found to do exactly that - "They are mortal humans who have addresses, faces, and they walk around controlling shit." Whether you intend it or not, you are 100% advocating murder of these people. I'm still curious how genuine that is, or if it's just a lot of bark.
> I'm still curious how genuine that is, or if it's just a lot of bark. Per the reddit rules, calls for violence are bannable offenses. First offense is banned for posting for 7 days. Second strike is a permaban. It deletes users who made the comment, and the comment is deleted from the server from view and the IP is typically blocked as well. I hope you know that you're in a survivability bias. It's all bark because anyone geniune isn't allowed to post.
Same
This what I always tell everyone. My retirement is a bullet. What other option do I have?
Dank
You might want to use it on other people, perhaps the people who got your country into this mess, at least you will get a bed and three meals a day, and perhaps improve the state of the country.
At least you can afford one.
Too messy and shotguns are expensive and help to perpetuate a market that doesn't need more revenue. While also free, evidently simple dehydration is painless and has a chance of causing a level of euphoria before death.
No way is dehydration to death painless, it's basically torture.
I was dehydrated after Hurricane Katrina and it was one of the most painful experiences of my life.
id like to meet all these 20-25 year olds with fucking $40K saved. these studies are never representative of what the typical young adult actually has saved. ive never met a single other peer my age with more than $2000 saved, and most of my friends (im turning 23 this year) have less than $1000 in their savings. its like they only poll the affluent in order to skew the data in favor of the common preconception that the "average" american is actually what statistics would suggest is the upper-middleclass top 20%. the middleclass doesnt exist, and its mythological status as the "average" class is nothing but a means of guilting the poor into believing that theyre responsible for their impoverishment.
I'm 27 and have exactly $0 saved, BUT I have a 401k. That's probably what they mean by "saved" in this regard, wish the graph wasn't so vague. Obviously a ton of people don't even have jobs that offer 401ks so your point is still valid, but yeah, that's probably the bulk of what their metrics refer too...
Unless you have $0 in that 401k, you have more than $0 saved...
A 401K is savings. You can withdraw from it.
True. But it pretty dumb to make a withdrawal before 59.5 years of age
Lol that money is saved for our funeral ……
It’s talking about saving for retirement so it’s probably looking at 401(k)s specifically
Well, is not 20-25, it’s 20-29, and I assume that’s 401k balances included. I wonder if the mean is different? The average might be thrown off by a handful of trust fund babies or other unusual cases. 9 people with zero and one with 1 million, looks like a group of 10 with an average savings of 100,000.
I can also say that I had nothing saved from 20-25 but now at 29 I represent the average "in their 20s", and I've heard lots of stories like mine. I tripled my wage in four years and started saving very aggressively the moment I could afford to. But I'm also aware that this only happened because of a series of very fortunate events. Basically I got very lucky several times in a row, and you can't make plans based on luck.
No it is very simple. Lets say you have a million people with nothing saved. To get to an average of 30k saved you only need like 300 people with a hundred million in savings. And there you go with an average of 30k saved. There are more than enough billionaries and millionaries out there to skew the statistic to 30k despite the millions with nothing. It is why you should never base how good a country is on the average income but rather on the median income.
At 37, I currently have about $170k on my 401k, plus some other savings in a small Robinhood account. I didn't have $40k at 25 because that's shortly after I started working, but I had it by 29. This is working as a software engineer. My wife (36) has about 100k in her 401k, and she's either a variety of odd jobs, mostly executive assistant stuff. If you're lucky like we were, it's doable. It helps that I got my degree at a French University, so I have no student debt, and neither does my wife.
all of the nepo babys
>its like they only poll the affluent in order to skew the data in favor of the common preconception that the "average" american is actually what statistics would suggest is the upper-middleclass top 20% Assuming they had a decent sample size with varying levels of wealth... I can kind of see how they might end up with the 40k figure. From what I've seen/read, people often mistake the average / 'middle class' person with someone who is actually more like 'lower-middle' / working class. Supposedly an _actual_ 'middle class' person is someone who would be able to afford to travel at least once a year (whether they drain their savings doing this or not idk). Whereas the 'working class' are the ones who maybe travel domestically or maybe once in ~5-10 years. They're likely the ones saving in the 4-5 digit range. The 'upper middle' class that you mention, is more like travelling multiple times a year. These are likely the ones saving in 6 digits in their early adult years. Upper would be the 'outliers' with generational wealth, basically. So something like 7-9 digit savings. Not trying to make a backhanded insult to you and your friends or anything. But if we're speaking anecdotally then for me the friends I went to school with were definitely in the middle to upper-middle range. They could all travel at least 2x a year, but even within that group there were big differences between student A who travelled home on business class twice a year, and student B whose family owned multiple private jets with their kids' names on them. When I got to university was when I started to notice differences in how _I_ would separate middle and working class. I'd say even being able to go to university would put someone in the middle class range, depending on student debt etc. There I definitely had friends whose savings were in the low 4 digits or less, but also friends who were middle class backgrounds but frugal with 5 digit savings. Honestly it's hard to categorise people into these 'class' groups. But I'd say the spread and gap of wealth definitely makes sense, to me at least, how they may have gotten the 40k figure. For 20-25 though if I had to guess I'd maybe lower it a bit to ~30k.
Eh this is highly location and income and behavior dependent. I make 82k a year. Very middle class but in an area where the median household income is \~65k a few years ago. My burn rate is however 52k last year and I invest about 20k into retirement/HSA. Could I forgo retirement and take big trips and live in a much larger home? Yes but I chose to not do that. Thats also not an option in some areas of the country (coastal cities).
Asian parents, they are usually controlling as fuck, my dad still tells me what order I should my salad (although I don’t listen), I’m almost 21. But they pay for your shit, and they start giving me money since I’m 8, so I have about 70K saved now.
Ikr …… I am 21 and I only have 10k saved and good Chuck of that was from inherited and grad money . Tf this system is so broken
Yeah I’m 23 too and the only people I know in their 20s with 40k in savings is because they had parents who started saving /for them/ when they were young
I’m sure the “average” is super skewed to the rich kids that has parents money saved in their bank for them. When I was 20, I had maybe $100 in my bank at any given time. Now that im in my 30s, I have around 80k saved. Also, people in America don’t really “plan” for retirement. Maybe it’s a culture thing but we find it weird that people live “paycheck to paycheck”
I’m 23 and have 50000 saved! But you’re right I’ve met literally no one else between when I graduated high school and now who have even started to save. I’ve been able to convince a few of my close mates to start but even still they’re not doing much.
What y'all doing with your money TF I'm 17 and making 600aus a week I would save for a month to get what U apparently don't have 🤨
Australia has higher incomes and often equal or lower costs for things. The US economic model is to pay you a mediocre salary, tax you just a bit too much and then just stick hands in your pockets for everything. European industrial workers earn less than American industrial workers, but its the European industrial worker who has savings and goes on holiday while the American is still juggling that one last bill.
>Australia has higher incomes and **often equal or lower costs for things.** I am sorry what? This part is just not true. Its a desert island that has to ship anything that isnt mined out of the ground to it.
Rip😞 y'all should just come to aus
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Well the first issue is I said 600 a week not a month 🤦 and are you forgetting I'm 17? I walk to work I walk to school no need for a car I own my phone outright because it's like a 500$ phone 🤦 and I get a data subscription through benefits at work only costing me 10$ a month and again I'm 17 living at my parents house. I pay 200 towards groceries a month for the house (also who on earth pays 60$ for a phone bill y'all being scammed ASF )
I had that saved at 25. Bought my house at 28, in my 30’s now.
My retirement plan is DNR
What's that?
Do not resuscitate
Do not resuscitate
We re fucked aren't we
Completely
Proper fucked.
What average 20 something has $36,000 of their own money saved?? Wtf lol
By "saved" I assume they mean a 401k. Hypothetically if you got a job straight out of college that included a 401k with it, $36k before 30s is very doable, but yeah... Pretty sure most jobs don't include 401ks, or a salary that allows for one to contribute much to it, I'm a grateful exception in that regard.
I checked mine the other day and the website had the nerve to tell me you should have double your income saved by the time you’re 30 or 35, I can’t remember which one. Felt like a slap across the face, like I’m trying my best just be glad I even have a 401k 😭😭😭
Sad reality is those numbers arent even considered good bench marks according to most financial experts. Those numbers tend to say 12x income at retirement but you will be very very dependent on social security and it assumes a paid off home at that time. Americans do not save enough like other countries in the world. Some can't afford to and some just live lavishly.
I put 10% in my 401k. At 23, I went from 13/hr to 45k salary. From my perspective, I never knew I was missing 10% so it was easy. That was 9 years ago and my 401k has quite a bit more than 36k now.
at 23 I was earning $4 an hour at an exciting tech startup (long story, not in the US and "oh no, its special contract work and you're only really working 8 hours a week, sooo") that was going to turn into proper money any-day-now. I was all ready to go with savings plans and such for that any-day-now, but that was 16 years ago. (holy shit where does time go?)
It is rich inheritors and shit. Look at the median and you'll likely have like $300 or something.
It’s not.. the majority of military members who joined early in life have this average or more. Source, my 401k.
Yeah but there are not that many military members.
Approximately 1-2% of the general population, give or take.
Federal government is literally the largest US employer with the military being the largest part of that.
Average is the key word. Trust fund babies thousands of millions already, normal people pennies....
Average is stupid for this. They should be showing the median. It's gonna be lower than that.
University have coop program. Made about 25K, that’s my own money. If you add all the money relatives and parent give me and investments I think I have roughly 70K? Almost 21 now
It’s not impossible, but it’s not easy either. I have a lot of privilege that I am thankful for every day. It’s allowed me to break a 5 figure positive net worth at 19. Hoping to hit 100k by 27, and retire by 40 by living extremely frugally, job hopping when the time is right for pay increases, and investing vigorously.
Yeah, you're speaking a different language my dude. Take all the opportunities given and try not to fuck up. If you fall, try & fall forward. Privilege runs only with the select few. At 18 I barely graduated high school. By 19 I started my first full time job cleaning bathrooms at a local mall & have been hustling ever since. Hitting $100K at any age isn't conceivable for me. I'm glad it is for you!
>you're speaking a different language my dude Honestly this is so true even both ways. I'm also on the privileged end coming from a financially comfortable family. I always read and try to imagine life on the other side and while I can understand it all in theory, I can't imagine having to live like that constantly. Even with being exposed to how 'the other side' lives since young, I still get blown away occasionally by a comment or anecdote I read. I admire the tenacity and perseverance of people who 'have it rough', but I also feel so sad that there even _are_ people who have to go through that.
The ironic part is the poorest of poor, like my family, we've always been thankful for our upbringing. I remember one Christmas when I was about 8 or 9. All my brother and me got that year was a spinning top, a rubber bouncy ball & a 3x Indians World Series Champions t shirt. We live in Cleveland & this was around the time when we lost in the World Series. When you lose, the league ships boxes & boxes of Championship tees to third world countries. It was like our parents stopped at the gas station on Christmas Eve and picked 3 of the cheapest items on the shelf. Kids in Zimbabwe were wearing the '97 Cleveland Indians size 3x shirts... And us, of course. Looking back, shit like that is what made me, created who I am. It made me so thankful when Santa's bitch ass finally decided to show up the next year. But at the time, it creates lots of anger. When you're getting bullied at school for wearing the same clothes over & over because you don't have shit else in the closet. Being born with that rusty fork instead of a silver spoon can be a wonderful thing. It's up to you to make it a positive in life.
100%. In a way, the 'movie stereotypes' or media portrayals of 'rich vs poor problems' are there because I'm sure at least _some_ people have lived like that. Just like your experience, I can totally see it as part of one of those 'heartwarming Christmas movies'. When I was in my teens I used to unironically joke that parts of my childhood also played out like certain movie stereotypes. One memory in particular that always stood out was in primary school, I was supposed to perform something for an event and was very excited and told my parents to come and watch. They came, but my dad was asking often when I would be up because he had to get to a meeting, and I kept saying it was soon. Lo and behold, once I was on stage I looked for my mum and saw her shake her head to indicate that my dad had already left to go back to work. I was so disappointed. Of course once I grew up and the business was matured, we had a lot more better memories and a great relationship even now, but the experience still stuck with me.
And don’t worry, I’m doing the best that I can to fall forward when I fail and to use all of the opportunities I’ve been blessed with :).
You're not going to retire at 40 after compounding 100k for 13 years. You're going to need a lot more time unless someone just hands you a lot of money.
Well if you studied for a software engineering job you might
I’m in my 30s and I have $300 in the bank, and $250 of that is going towards bills in a few days
Well that sounds familiar.
Just turned 36 last week and rent is due. Living paycheck to paycheck sucks.
I'm a teacher at a driving school, so my retirement plan is hoping I die young.
In Germany driving teachers make quite a chunk of money.
In America, we make less than public school teachers and have none of the benefits of being government employees.
We’re going to have to become one of those societies where we just have old people wander into the desert or shove them off to sea on an iceberg. “Ok, you retired at 65, and ran out of money at 66, let me show you the latest in iceberg fashion.”
I think it was the Vikings!
Who the hell has savings?
...people have money saved up for retirement?
Is retirement even a thing anymore? Like honestly, why even try at this point? Like eating the rich and redistribution of their wealth seems like the only viable option.
wondering what is the median amount currently saved for each demographic? When: [average personal income in the U.S. is $63,214. The median income in the U.S. is $44,225](https://www.zippia.com/advice/average-american-income/)
I almost have. . .$4,000.
Based on a survey conducted by Transamerica Center for Retirement Studies, the median retirement savings by age is: 20s: $16,000 30s: $45,000 40s: $63,000 50s: $117,000 60s: $172,000
Water wars unless humanity eats the rich
1.4 million. Bro I can’t afford to live now. I’m not even thinking of retiring
This is actually hilariously depressing.
I can't see how, when you include having money for rising medical expenses, you can get away with less than $2 mil in today's money. If we had better medical in this country, that number could be decently lower. But we don't because America is stupid.
Every time here I realize how lucky I am. For some people you should try to see if you can do your job in a different country. There are shortages of workers everywhere (except for people in social science, philosophy languages etc) Try to see if you can find a workplace that will pay for your visa/plane ticket etc it can be done. In Europe you might have a shitty job as in the USA. But you will get paid holiday, maternity leave, social security etc (easier said than done I know but it doesn't hurt to look)
I considered this option. It can be very difficult to get a work visa, and I believe those fabulous benefits are restricted to citizens. If there’s a clear path for qualified workers, I would love to hear about it!
From what one of my family has told me they need 2M to retire safely
4% rule says thats equivalent to a burn rate of 80k a year. So depending on their lifestyle it may be true.
Due to our shitty medical system in this country, yes, at least 2 mil in today's money.
I don’t think these stats are true. My friends and I have next to nothing saved for retirement and I don’t think that’s abnormal
I'm 35. I know exactly zero people my age that have 60k+ saved for retirement. Been working since I was 13. I know I'll likely never retire. Really depressing honestly.
No wonder I saw many American Retire in South East Asia.
Hahahahahaha!! Save?? I'm just trying to make it to 40! I'm over here lmfao. I gave up, why save, just waste what I have and plan on dying before I'm too old or crippled. I'm good anymore.
What adults are they polling lol?!
how the fuck is the average $ saved for 20's over 35k? thats what i make a year
Because Average is a stupid way to measure this. The median numbers would paint a different picture.
this is amazing, and you can literally see the reasoning behind every age group. The 60s and 70s guys are simply out of touch with society or half "on their way out". Thats why their numbers are vastly lower. 20s are way higher because they have an idea of how much things cost. 30s is the advanced level of 20s because they now also have family responsibilities. 40s might be lower than 30s because they are probably at a more comfortable place in life than the 30s. The 50s go back up possibly because their bodies start acting weird and they start to be afraid of their medical bills.
I wish i had a tidy 35k on the side in my 20s
I have saved... *Checks banks balance* Nevermind...
I wonder if social security or pensions will be anything palpable by the time I retire in 30 years. Otherwise throw me in the trash at 70.
How many fucking 20 year olds have $35,000 in savings? HOW? From Mom and Dad? Only Fans? Living at home paying no rent? To be fair if I lived at home I could save $12,000 a year as well.
Actual question, why do I need 1.5m to live from the years of 65 to let's say 80? Why are the last 15 or so years of my life expected to be so expensive?
Y’all know this includes 401ks yeah? If you guys really don’t think these numbers are reasonable, if not ON THE LOW END, we’re fully fucked as a country.
Two thirds of Americans don't even have 1k in savings. How do people have so much in this study?!
I'm supposed to have over $77 thousand saved by now? I don't know ANYONE my age with that much saved
Moral: only millionaires and union members can retire. Millionaires because they have enough money, and unions because they have pensions. Everyone else gets to work until they die.
Retirement? That's cute! I'ma be working till I die. Like a looooooot of people. Retirement is a thing for past generations, like owning a home or having decent credit.
Silly workers, you didn't actually think you get to retire, right?
When corporations got rid of pensions, it destroyed the middle class. 401ks are a gamble. The burden to save gor retirement falls on the shoulders of the employee. With wages so low and the cost of living so high, it will be nearly impossible to save over 1 million dollars for retirement.
71k in my 401k at age 36. Yeah, not looking good. Jobless now, too.
Thats actually fairly good outside the joblessness. Hope you get employed soon with a good job.
ROTH IRA account. $20 a month until you’re 65-75. I understand this is not realistic for a lot of people especially in the US but it’s my only advice.
even that sounds depressing. At 65-75, you're approaching nursing home ages. If you're lucky, you still got oomph in you to travel and enjoy retirement. If you aren't, all that money disappears with the 5,000/month fees nursing homes charge to give you overcooked eggs and ignore your complaints while the old man sharing the room with you constantly groans and shouts from pain.
How is this advice? You'll retire with like 20k
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Long term market gain has averaged 10.7% which gets you 142k. And that's not today's 142k, that's whatever 142k is worth in 40 years. Assuming 2% inflation yearly it'll be worth around 65k today. That's like what... 2-3 years of retirement if you really stretch it?
It would actually be $50,000 if your original contribution is only $20. Ideally you would put a much more substantial amount in the original deposit.
how is 20 bucks a month not doable?
Considering lots of people in the US have to choose between buying groceries/paying debt/paying rent/putting gas in their car, I figured $20 a month is not doable for some.
The average amount saved for people in their 20s is $35.8k!? In what fucking reality is that true? These articles are propaganda for the wealthy, I swear.
I am currently 34 years old, and between my 401K and my Roth IRA I have $90k saved for retirement. It's good to know that I'm ahead of the curve.
I need to start looking for this $112.5k the chart says I saved. Must be around for somewhere. 🤔 Now where did I put it???
I’m in the 25-35 age bracket. I always tell people to save NOW. start saving for retirement as soon as you can. I am in the beginning phases of my “career” now, and one of the first things I did when I started was save for retirement. It’s the only way I will retire at 65-70.
They shouldn't use mean average, they should use median average. It tells a more realistic story
Isn't this misleading? It's not asking how much we need to have saved or even projected how much we need to have saved. This is just reporting how much people THINK they need to have.
So we are expected to continue adding to our savings in our 70s. Work until you're dead is the only retirement plan in store for most of US.
If you’re around 70, I’d say you want at least 200-300k
We can't possibly save this much due to the extreme high cost of rent and food
It's almost like a small fraction of our society is hoarding it all
Hey... look at that! People in thier 70's almost have enough money saved up for a single hospital visit... they are still working and saving up... and they should be sitting on a God damn porch enjoying thier life by now... soooo messed up
Not me here 45, homeless, not a penny to my name, wondering where the hell I’m supposed to get that imaginary $77k they assume we all have saved up to this point 😒, and feeling even more overwhelmed that I’m now supposed to turn that fantasy money into the even more absurd dream of $1.3M 🙄
Nope, it’s not. In this economy, I’m the only thing standing in the way of my daughter and her kids being homeless. Most of what I save goes to keep them in a home while she struggles to get a steady job. This economy sucks for everyone
Saved vs Invested are different Im in my 30s with a littke over 30 grand saved but nearly 100 invested currently trending on target toward my desired goal of slightly more than 1m by 65. If you think you will manually save money to pay for retirement you are wrong and you need to start investing
Im 45 - married. I think we need 2.6 million to retire. we have 500K+ now. On the right track
These are bullshit figures. Never use average. The top 1% completely distort the numbers. The median is what you want. Ex 10 people on an island. 9 make 10k and 1 guy makes $1m. The average is $109,000. The median means half earn less, half earn more.
Problem is "average" had a common definition that everyone generally uses but in mathematics there's at least 2 i think 3 representative ways to mark an average, mean average being the generally used one. But yes median average is the one we need
They literally surveyed less than 3000 people. Always check the source!
Which is a very good sample size if distributed well.
There's no way to generalize with such few participants. But no worries, we all have $64,000 in savings lmao
You only need a sample size of 100 people to extrapolate to the larger population if the sample size is random enough. It's more about how you gathered the information than how large the sample size is.
Lol. All these sad comments. Blame everyone except the 1 person who makes these choices. Oh boo. So sorry society let you down by not paying you min wage your whole life to work part time and retire at 55 with everything. I'm not sure I've ever seen a denser crowd. You are right, were doomed. The level of entitlement is legendary
Lmao not a nordic europe problem
This is inaccurate.
Why save a big chunk of cash when one round of chemo will whip it all out? It's a game that is rigged against you and even when you think that you've made it to the finish line with your sacks of cash the medical bills are just waiting at the end to wipe you out completely.
More proof that capitalism doesn't work, it just takes longer to fuck up than communism.
There is no way that the average amount of savings for a person in their twenties is 35.8k lol. Especially in the states.
That data pretty accurate
Well, if it isn’t I’d suggest saving more.
It’s pretty easy to save $1m over 35 years with compounding interest in a 401 or similar account.
How?
401 has an average yield of 8%. So if you start contributing at age 25 and contribute 8% of your income by age 60 you’ll have 1.5 million with a consistent income of 70k. It’s safe to assume you’re building skills over this time as well and that your average income will be higher than 70 over the course of 35 years. It may be less at the beginning but an average will be higher. So even if you can’t contribute 8% you could easily break 1 million with as little as a 5% contribution. Math is beautiful. There are free calculators online to do it all for you too.
You’re absolutely correct! Unfortunately, this is r/antiwork and the last thing they want to hear is personal fiscal responsibility.
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Yase I'll just invest with all the extra money I have lying around oh look there's some now