Of all generational cohorts, older millennials are most likely to generate enough income to retire comfortably, according to the latest Vanguard Retirement Readiness report.
Specifically, millennials aged 37-41 have the greatest chance of landing a comfortable retirement.
Millennials fretting about their financial future can take comfort in knowing they are on track to retire in a better financial position than they probably think.
A lot of things were supposed to be better than we thought in the beginning
I’m so sick of this complacency with the idea of paying into social security your whole life to fund the boomer retirees just to have it taken from us as one final fuck you. The vocalized consensus among everyone needs to be its not getting taken from us, if anything it will be fixed and made more robust and any politician that acts to remove it from us will have their heads removed from their bodies.
Absolutely. I get the doom, but there’s no way I’m just rolling over on SS, ever.
So we post into social security assuming we won’t get it to support the boomers but then they shot down student loan forgiveness, cool.
Boomers believe social security would be gone by the time they retire. It’s been a common conspiracy thing for decades.
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It’s literally a Ponzi scheme that the government just declared it to not be one. It must either explode or have ever growing generations funding it.
Vanguard assesses retirement readiness assuming your post-employment income should match around 68% of your annual salary.
Millennials in the 70th percentile of earners are the only demographic on track to come anywhere close to that coveted ratio. Early millennials are expected to hit 66% of their annual salary at retirement, while Gen X lags at 53% and late baby boomers at 51%.
Yay, wealthier Millennials? Way to grind that 401K
That was my take away. If you earn a lot of money you can fund a good retirement.
The only other real argument I found was that millennials in general may be better off because they entered the workplace when these retirement plans activate automatically whereas boomers and gen x had to actively sign up for them.
Your retirement plan activated automatically?
I think what they meant was 401k enrollment is now included in new employee onboarding by default in most places now.
Ive still never had that, Im over 30 and the only retirement account I have I made myself outside of work.
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I work in Human Care like about 25% of millennials, I don’t know many people whos orgs offered retirement to them, a lot make their employees purchase insurance through the ACA, ive seen ‘How to apply for ACA’ in onboarding handbooks and handouts, but retirement is rarer.
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My employers 401k plan was automatic. Let it sit for 3 years and came on hard times around 2021. I actually lost ~15% of the money I put in. Cashed it out, opted out of automatic contributions and haven’t looked back. I don’t need some investment firm to lose my money for me, I’m already good at that on my own lol
Please revisit. That’s usually a bad idea. Yes, aggressive investments can lose money in short terms like one year or less - actually there was a long term piece of advice to not invest in stocks any money you need for the next five years. However prudent investments, like an SP500 index fund , have always increased in value in like ten year periods, and over some similar period have always beaten inflation
There’s a lot to learn about investments, but
- it’s your only realistic path to fund retirement
- the magic of compounding is your best friend
- 401k contributions and returns are tax deferred until retirement
- many 401ks have additional corporate contributions - free money
401k’s can be VERY useful to most of us over the long term, so you should reconsider whether it’s good for your situation too
If I had the funds to invest, I would probably have a Roth IRA or something simple but the hard times never let up. I work 60 hour weeks and still live paycheck to paycheck. I’ve only earned enough in the last couple of months for me to get health insurance again. I can’t afford to give even 3% of my paycheck away (the minimum for my company to begin matching) at the moment and that’s not likely to change in the next year or two.
I really do appreciate the concern and if I were in a different place, I’d reconsider. I was being a bit bitter and sarcastic in my comment but I’m in no.position to save any money
You sold when it was 15% down? And outside of retirement?
For the love of god, don’t touch your retirement savings. Consider reading this series:
I needed what little was in that account because my car shit the bed on me and the repairs were more than the car was worth. Had to take that and my stimulus check to buy another beater. I’m still paycheck to paycheck and couldn’t afford to start my savings back up if I wanted to
Let me guess, you are in USA? Only there you’d be so car-dependent.
I see. I’m sorry about your situation.
All good! I appreciate the advice, genuinely
You don’t trust the pieces of shit my taxdollars bailed out in 2009? Why don’t you trust those peices of fucking shit?
Staying out of the stock market will ensure you won’t have enough to retire on.
Here kid, have a bitcoin
Oof. By the time you learn you were wrong, it’ll be too late.
Actually it’s required if you’re over the age of 30. Below that age, you can delay it. Once you hit 50, the percentage input increases significantly. I work as a state employee so it’s different than in private sector.
I think that even corporations are just enrolling people though too.
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They should be investing in a Roth account instead of standard 401k if possible. Unless you’re sure that income taxes will be lower when you need to take out that money. Roth investing pays the tax up front, and the rest is yours to keep even after it appreciates in value over time.
A 401k lets you make money on the part that would have otherwise gone to taxes. Can you show an example with numbers where paying tax up front comes out ahead of paying tax at the end?
Nope I don’t have any examples. You should invest as you see fit, after doing your own research into the options.
It’s a gamble basically but I’m gambling that taxes will be higher than the little bit more I might make on gains from the extra pre-tax money.
And if you make enough to contribute to both a RothIRA and a 401k, you should do that and not pick one over the other.
Traditional IRAs and Roth 401ks are also things.
Wait, Millennials think they will get to retire? How cute.
If they’re lucky, humanity will still exist!
Ya, I don’t think so. As a 37 yo millennial, my retirement plan is to sell my parents house, live as long and comfortabley as I can off that, then eat a bullet. Actual retirement is not something I expect to be capable of.
Mine is to sell my home and move to Mexico once my children are out of school, work remotely for a US company, then retire at like 55.
Multiplying my retirement savings (and home equity) by 20 just by moving will go a long way.
You think Mexico will be liveable by then? I had considered something like that, but I think climate change is going to make those places unlivable within the next 20 yrs.
That’s most definitely on my mind. Really hoping so.
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I love Mexico though. I used to travel there for work a lot and I just fell in love with it. I agree it would not be for everyone, and don’t recommend it for everyone.
If you need to live at 5% of current costs, you’ll need go further down the oecd country list than Mexico.
I don’t need to. the USD currently exchanges with pesos at 18:1
Do you think they just have the same prices for everything, but in pesos? I have some bad news for you…
No. I have worked quite a lot in Mexico and am well aware of import prices, etc.
GenX here and I’ll never be able to afford retirement. I’m hoping Carousel is a thing by then.
“Taking matters into their own hands,” as in “considering options for suicide.”
What’s carousel?
Reference to Logan’s Run. Life ends at a certain age so resources are never over consumed.
Capricorn15. Today is LastDay. It is time to renew at Carousel.
Edit: Sauce https://www.youtube.com/watch?v=4M2vx_RCwSs
Oh, thanks very much.
That shit was kind of disturbing when I was a kid. That shit is kind of disturbing now!
“Be strong, and you will be renewed.”
There’s a drug that permanently destroys the part of your brain that creates empathy. I’m planning to become a cannibal.
That’s a weird way to say “millennial tend to have retirement plans”
The title made it sound like we’re finally eating the rich.
That was my plan. Are… are we not doing rhat anymore?
Probably a good idea to start now before robots get more deadly
And they misunderstand how social security works.
Not having children is my retirement. I will probably work till I’m old and gray so I just tuck what I can away, buy things that hold value, and live my life.
Same. I’ve simplified my life as well. Sold my home, car and other shit that was financially and mentally draining.
The opposite. On the off chance I retire I plan to parasite off my kids until they put me in a home.
Muhaha
Homes are expensive. Be nice to them so they don’t wheelbarrow you off a cliff.
It’s fine. Perfect end to the perfect life.
I mean I don’t disagree with the headline, but the article is just an ad.
The real headline here is that 2/3 of millennials think they’re getting Social Security, or that retirement is going to be an option for them. It’s optimistic, but not realistic.
I’m in this window and don’t feel that’s the case.
I am resigned to working until I die, leaving my retirement funds to my kid so maybe she’ll have a leg up, or at least be able to survive.
I don’t have kids but my ex wife and I were really bad with money so if ever I had a chance to retire I squandered it.
Hoping I have something to leave my nephew so he has a leg up when he crawls out of the bunker after the climate wars.
Gen X here and an older one at that.
I don’t think I’ll get SS and I will be of retirement age in the next 12 years.
My funeral will also be my retirement party.
Can you define this word “retire” for me?
Thats when you stop working but aren’t dead yet.
But wish you were because you’ve nothing left to give and your body is conking out on you. Life is a scam.
Late Gen X-er here, I don’t think I’m going to see any social security money.
I already know as a GenXer I’ll get none. I’m lucky to have a pension and retirement funds.
Lol retire
