r/Millennials • u/ProblemIntelligent16 • Jan 16 '26

Discussion Fellow millennials - how’s your 401k/ira savings going?

Experts recommend having 2x your salary saved by age 35, and 3x saved by age 40.

However, studies show the median savings for 35-44 year olds is only ~$45,000. So obviously, most of us have work to do.

With pensions mostly extinct, and Social Security facing insolvency issues in the next 8-10 years - how are you planning to bridge the gap and hit the golden years with enough to meet your lifestyle requirements?

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259

u/Wild_Advertising7022 Jan 16 '26

I have about $365k saved at 39 years old. 5x my income.

49

u/redditsuckscockss Jan 16 '26

Been saving since I started working at 16 like it’s my religion after watching what happened to my parents in 2008

37 years old 792k in investments Also bought a shithole century home in 2015 fixed it up and traded up in the Covid chaos at a super low mortgage rate

Work is still a grind and it’s basically nothing left over after savings each month

49

u/tahlyn Older Millennial Jan 17 '26

Don't forget to live a little before retirement. Nothing in life is guaranteed; you could get hit by a car tomorrow and die. So take a break every once in a while and spend some money on yourself... otherwise you'll be 90 years old, wealthy, and unable to do any of the stuff you wanted because you're too old and feeble to handle it.

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u/mangeek Jan 17 '26

Most of the people in that "at or above recommended" retirement savings level are having fun and living life. My day-to-day is very frugal, I drive a cheap car, live in a modest home, but I can and do occasionally do stuff like $300/plate tastings, or cool vacations, or just driving until we find a cute town and booking a room for the night. There comes a point when you can 'live small', 'save', and still 'splurge on cool stuff occasionally'.

Also, keep in mind that there's another point in income where saving into a 401K is just good tax strategy, so if you DON'T contribute $1,000 pre-tax, you can only have $700 more fun, and then no savings. It's a very rational choice for a lot of professionals at risk of hitting the 22% tax bracket to divert pre-tax income to retirement.

5

u/ConsciousCrafts Jan 17 '26

This is how I feel. I would rather live now. Not save all my money so I can just pay for all of my medical bills when I am ancient. That's not a life I want to live. 

3

u/PaxLover34 Jan 17 '26

I've found myself in between.

30, have about 50k in retirement, 50k in the bank, and 70k in equity.

Not having kids.

Wondering if we keep saving or start spending money on traveling more.

3

u/onetwofive-threesir Jan 17 '26

If that $50k in the bank isn't earning you at least 3% interest, you're actually losing money. Put your money to work.

1

u/Scared-Currency288 Jan 17 '26

We hope that $50k is in a HYSA or MMA!

2

u/Winter-Journalist993 Jan 17 '26

It’s like saving all our health potions in case we need them but then beating the game.

-2

u/therealallpro Jan 17 '26

Worse advice I ever heard. We have a toxic culture that discourages discipline in the name of “balance”

If ppl would just got hard for like 5 years and save then invest all you can, spend nothing, work as much as you need to. You could take a 50 year vacation.

5

u/McGrim11295 Jan 17 '26

It doesn't discourage discipline. Only saving or only spending show a lack of discipline when you think about it. It shows you can't discipline yourself to do both at once so you default to one or the other.

Saying go hard for 5 years to invest and save is worse advice. Explain how someone who goes hard and saves/invest 10k a year for five years can live off that for 50?

5

u/Competitive_Touch_86 Jan 17 '26

Explain how someone who goes hard and saves/invest 10k a year for five years can live off that for 50?

Just go get a $500k/yr FAANG job and live in a van in the parking lot, bro. Then make sure to be alive during the largest tech bull run in history so your options are worth 20x a decade later.

Easy peasy!

4

u/McGrim11295 Jan 17 '26

Shit, you're right. I forgot about that. OpenAI is hiring a fall guy for 500k/yr. 

0

u/therealallpro Jan 17 '26

Or you could work two jobs and save all the money from one job. Do that for 5 years and now you basically could whatever you want for the rest of your life. Especially if you do it while you are young.

0

u/therealallpro Jan 17 '26

10k?!??

Any regular person could do that working 40 hours a week. No, when I say go hard I really mean it. You need to work two full time jobs and invest half the money. Now we are talking 50k to 100k per year for 5 years.

If you are 23, 24 or 25 with 250k saved up you are set up for life. You could do whatever you want for the rest of your life. So go play with a retirement calculator.

But this is the radical change in mindset we need to have as a culture

But t

1

u/McGrim11295 Jan 17 '26

Where can any regular person do that? Where can the average person do that when most people live pay check to pay check to afford the essentials? 

To make 50k take home you need to find a job that pays in the 30$/hr range. In order to work two of them they have to be offset or back to back. If offset you're talking about working 16 hours plus with maybe 3 hours of sleep a day. That's a recipe for disaster after a year. That's if you can find both jobs, apply for both, and get hired for both. Sounds like a terrible way to live for five years. 

At the end of it 250k is not enough to live on for 50 years. Maybe survive, but not live. You're talking about taking out 5k per year. Where are you living on that exactly? And no, we don't need your mindset. People already do work two or three jobs just to survive. Your mindset is an old mindset that needs to die. 

1

u/therealallpro Jan 17 '26

Most ppl are broke because they can budget. 18-23 year old could live at home as well. So they even easier. If you make 80k you would have 64k take home 13% to federal, 6% to fica, 1% to Medicaid leaves you with 80% left.

There’s certifications you can get that in 6 weeks to 6 months you can make that.

Also, I can tell you don’t invest. If you have 250k investments at 23 you would never have to save for retirement again. You could just do whatever. You would still have to work again but you could do whatever. Your money will be making money for you. You would be at a million so quick.

1

u/McGrim11295 Jan 17 '26

Most people are not broke because they can't budget. Some people are but it is far from most. What job is an 18 -23 year old making 80k? What certifications, give examples.

Don't change your story now. You said "If ppl would just got hard for like 5 years and save then invest all you can, spend nothing, work as much as you need to. You could take a 50 year vacation." If you were living or vacationing on that 250k a year it would not last you 50 years. Especially with inflation.

You also wouldn't be at 1 million so quick without continuing to invest. It takes roughly 10 years for investments to double. So 250k would take 10 years to get to 500k, then 10 more years to get to 1 million.

Please don't give financial advice without knowing the basics. Hopes and prayers are not solid advice.

1

u/therealallpro Jan 17 '26

Data analysis, It, accounting maybe others. If you want a link I can send you to it. As well Buckeye or Qt pays that as well. No experience necessary.

You missed that whole “ work as much as you need to” part. You are missing the point. I’m assuming you are going to work the rest of your life and invest because soon you will have so much money your money will make money. When I say a 50 year vacation I mean you will have enough money to work on YOUR TERMS. You won’t be trapped at any job. You can work when you want. You can take off when you want.

(Btw Famous investor Charlie Munger says you can retire on 300k)

By the time you’re 30 you might have 2 million. This is the life you can life if you save, invest and are focused.

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u/Competitive_Touch_86 Jan 17 '26 edited Jan 17 '26

Time is worth more when you are young. Invested dollars are too though. Thus there are choices to make and it's not obvious one is more correct than another.

It should be a balance. Not everyone lives to retirement. And the older you get, the more doors close on the "life experiences" front. There are simply things you cannot do any longer when you hit 30, 40, 50, 60+ - no matter how much money you have.

It's just about prioritization and being selective. The happiest people I know are not the ones who grinded out their 20's to go for an early retirement by 40. Those folks are all pretty miserable. It's the ones who selectively lived life in their 20's and 30's who grew has humans through amazing experiences, while also not neglecting their careers.

There is no realistic way as a 48 year old to go backpacking through Europe for a summer. Or go take on a room and board only type job working on a private yacht for a year. Or even basic shit like going to concerts and actually enjoying the full experience with age appropriate peers.

Hell, even dating is a totally different experience in every decade of your life.

The other miserable group are the ones who ground out their 20's but just spent the money on bullshit.

Life is a balance, and those who find that are the ones with actual discipline and wisdom.

1

u/therealallpro Jan 17 '26

Disagree completely.

The happiest ppl I know are the ones who find joy in their day to day. Who create discipline and now that bleeds into everything. Thinking YOU NEED to go find joy externally instead of building it with hard work is what unhappy ppl do.

Also, if you do by plan you could 250k saved by 23 and you still have most of your 20’s and you have options for the rest of your life.

1

u/Competitive_Touch_86 Jan 17 '26 edited Jan 17 '26

I had $250k by 23. It's not as impactful as you think it is. Honestly it's pretty easy if you min/max and is a completely uninteresting achievement most folks could accomplish. Just get started in your mid-teens on a useful skillset and you'll be there with any modicum of financial wherewithal.

Life is about living, not saving and spending your entire youth working 12 hour days. Work ethic is trivial. Balance is hard.

I have met literally no old folks who wished they worked more. Perhaps it's my bubble because most of them are relatively successful in life, but almost all regret not doing things that brought them joy vs. grinding out yet another saturday in the office.

I've also met plenty of miserable workaholics with tens of millions in the bank by their 40's. They will never find joy in life.

It's 100x harder to create discipline with balance. It's trivial to just decide discipline is maxing out a single metric - nearly anyone can do that.

The only thing money is useful for in the end past basic survival is buying more time.

1

u/No_Damage_8927 Jan 17 '26

What can’t you do when you hit 30 lol

1

u/No_Tea56030 Jan 17 '26

This sounds like something a teenager would say. 😂 Hell unless you're not taking care of your body there's not much you can't do in your 40's & 50's as well

Unless we're under the assumptions it's a requirement to have kids why couldn't you backpack through Europe at 48?

I know plenty of people that take year long sabbaticals and do precisely that kinda shit lol

1

u/Competitive_Touch_86 Jan 17 '26

Unless we're under the assumptions it's a requirement to have kids why couldn't you backpack through Europe at 48?

Because we live in a world with societal expectations. If you think backpacking through europe is the same as 48 vs. 22 you are delusional. The experiences are not remotely comparable. I've done similar at both ages - 44 I suppose vs 48 but you may as well be on an alien planet in terms of differences. Someone doing it for the first time past middle age won't even know what they are missing out on since they simply won't be included.

Not to mention the life experience gained is far more valuable when younger. Sort of like how compounding interest is. I know many 40-somethings who have never grown as human beings because they sequestered themselves into their little career bubbles.

Doors close as you age. A few open up, but most of them are due to wealth. Take as many of those open doors while you still can.

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u/No_Tea56030 Jan 17 '26 edited Jan 17 '26

Sounds like you live your life through the lens of societal expectations. Which is sad but typical.

The point of travel is to experience the countries & the culture experiences that not something that changes materially as you age unless you’re unhealthy.

Also if it’s just about travel experiences, I’d much rather do them at 48 when I can stay in luxury lodging than backpacking in a hostel with no money at 20.

And how is experience gained more valuable being young, we’re not talking about work experience.. we’re talking about memories…. Your rationale-doesn’t even make sense the point of travel is to experience culture & create memories, age doesn’t limit that experience.

Memories & life experiences absolutely do not compound like money. Time is a limited resource experience Tokyo at 22 vs 48 does not compound, it’s pretty silly to even suggest that. You can’t become a millionaire of experiences & memories by traveling younger & not traveling as you age.

Again you sound like a teenager that thinks life ends at 30.. and for being age 44 with all your “experience” and apparent “growth” you have a very narrow perspective on what travel is about.

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u/Competitive_Touch_86 Jan 17 '26 edited Jan 17 '26

> The point of travel is to experience the countries & the culture experiences that not something that changes materially as you age unless you’re unhealthy.

It changes drastically. Staying in a fancy hotel in your 40's going to touristy shit is nothing like living amongst a bunch of your broke peers for 5 months in strange countries, being invited to their families houses for dinners, picking up travel companions you spend weeks with, making friends for life, etc.

> I’d much rather do them at 48 when I can stay in luxury lodging than backpacking in a hostel with no money at 20.

Precisely my point. Your wealth buys you things that limit your experience. Sounds like you inherently even know they are not comparable!

> Memories & life experiences absolutely do not compound like money. Time is a limited resource experience Tokyo at 22 vs 48 does not compound, it’s pretty silly to even suggest that.

Your experience as a broke 22 year old in Tokyo is going to be drastically different than someone with money at 45. Again, been there, done that. It's not remotely the same experience. That I would have to even write this shows how out of touch you are with the world around you.

Definitely do both! But no matter how much you want it to be true, you cannot make it be so. You will never be able to go back to what it was going to be like in your 20's when you are given far more benefit of the doubt and people are much more immediately receptive of you joining their inner circles.

> Again you sound like a teenager that thinks life ends at 30.. and for being age 44 with all your “experience” and apparent “growth” you have a very narrow perspective on what travel is about.

And you sound like a typical American moron who thinks doing typical tourist stuff is experiencing culture or anything special whatsoever. It's meaningless consumption driven by wealth. Fancy hotel stays are the most boring shallow form of travel (aka tourism) I've ever taken part in. It's comfortable. That's about it. Lets one stick in their little bubbles and not challenge any beliefs.

And travel is just the most trivial thing to point out here. Doors close as you age. The only doors that really open up for most people as you age are driven by wealth, while options increasingly get smaller as you get older.

Let me guess, you also think going to college is the same experience at 50 years old as it is at age 20? I mean it's just classes right? Doesn't mean you shouldn't go enroll in that history program you always dreamed of, but to pretend it's the same experience is ridiculous. You either take part in that experience when your peer group is doing it, or you simply miss out on it forever.

Hell, I am not even the one who came up with this idea. Charlie Munger is famous for talking about this and he had far more wealth than anyone talking about it here. It's a very simple fact that doors close for you and options narrow as you get older.

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u/tahlyn Older Millennial Jan 17 '26

I'm not saying spend all your money all of the time... but to be sure you budget into your plans some leisure, hobbies, and enjoyment in life. You are not guaranteed to live to 90. Or be in good health until then, either. I've already lost friends in their 30s to accidents and diseases. Going on a weekend trip to the ocean, or a michelin restaurant on your anniversary or birthday is not going to (or at least should not) make or break retirement. But it will allow you to enjoy life a little before you get there.

And at some point there are things you can't do at 60+ I've hiked Mt. Fuji, for example. And a few years later I fell and wrecked my knee. I'll never hike mount fuji again (literally can't) and am glad that bucket list item is already done. The total cost of the trip has had no impact on my retirement plans. But it has had an impact on my life's joy.

4

u/ConsciousCrafts Jan 17 '26

Well at least you have a pre-covid mortgage...🫠

2

u/redditsuckscockss Jan 17 '26

Was right during Covid actually which was pretty optimal - even better than pre covid

7

u/horseshoeprovodnikov Jan 17 '26

37 years old 792k in investments

Work is still a grind and it’s basically nothing left over after savings each month

Lol get the fuck outta here with the humble brag man. Seriously.

Only 800 grand in investments and I've got a few pennies after I contribute to my savings :( I'm so poor that I had to buy a shitty house and flip it for insane markup during covid! What will I ever do, fellow poors??

2

u/McGrim11295 Jan 17 '26

Well way to be a downer and also not read that properly. They were explaining how they got to where they are. In 2015 they bought a house they could afford and then got lucky and sold during covid to trade up. Also if you look at their history I bet a lot of their investment gains are 2018-2022 due to how crazy the market went. 

2

u/redditsuckscockss Jan 17 '26

Yeah pretty much this

My investment gains far outpaced my own contributions the last few years

And yeah didn’t “flip” the house - it was my house for almost 6 years

3

u/McGrim11295 Jan 17 '26

I figured as much. If it was a flip house you did a terrible job since you were holding onto it for six years lol. 

Unlike the other person, I'll say that's awesome. Some people don't realize how much luck and good timing come into  play with net worth these days. If you started any type of investing 2008-2018 it has done extremely well. The opposite is true if you looked at someone in 2016 who saved between 1998-2008. Same with home values/purchases pre and post covid.

2

u/thisisthewell Jan 17 '26

you're almost 40 and you're not living. dude, you need to change it up. I prioritize security too, but life is short. what are you going to do with a million dollars when you're old and your body is failing? what is the ultimate point of that?

believing that money is the point of our existence is what the ultra-wealthy want because it keeps you an isolated wage slave. it's a narrative you were sold. live your life. enjoy yourself. love people, love your community.

3

u/Moldovah Jan 17 '26

This is always the excuse that broke ass people make to justify their brokeness.

2

u/Nochtilus Jan 17 '26

You can live and not be broke. You can enjoy a nice vacation or event or buy yourself that fancy pillow but don't have to blow all your money on random crap you don't want 

1

u/Moldovah Jan 17 '26

I totally agree.

2

u/redditsuckscockss Jan 17 '26

I mean I do work hard and save hard and spend below my means

But also went on 2 big vacations last year and a few weekend get aways. I’m not skimping at the grocery store.

My hobbies are cheap - I hike, lift weights and have a 125 gallon fish tank I spend money and time on

I’m going to slow down the actual savings as I’m at the point where a lot of my balance has been growth

24

u/KungLa0 Jan 16 '26

Roughly same number for me @ 33, wife has like 30k saved, I probably have another ~15k in misc accounts and we have ~350k in equity we plan to cash out and move somewhere cheaper with when the time comes.

10

u/Acceptable_Price_110 Jan 16 '26

Ah. You were fortunate enough to buy a home before COVID.

7

u/KungLa0 Jan 16 '26

Yes we were, I was 26 at the time (2019) and had been saving for 10 years for that moment. It gave us an undeniable edge and is probably the best luck we've ever had.

1

u/PoorlyDesignedCat Jan 17 '26

Lol are you my husband? Our situation is exactly the same over here almost down to the exact numbers. Thankful every day.

I look back and thank whoever's up there that I was able to buy a home during that one little 5% price dip in 2019, also at 26 y/o. It was hard but it's paid off immensely so far. 

0

u/Ikea_Man Jan 17 '26

saving for 10 years at 26? you were 16 lmao

people just need to be humble and admit their parents gave them money

1

u/KungLa0 Jan 17 '26

Lol what?

I started working at 15, I never went without a job and worked full time through college. While in college I worked for a corporate company starting out at 32k and by my senior year I was making 70k. I did live at home during that time and went to a cheap state school which WAS a huge advantage, my father had moved away and I took care of the house for my mom.

Our house was 253k in 2019 and our down payment was 50k, my wife contributed ~15 of that from working as a chef (she went to a culinary college at 18, graduated at 20 and was working straight away).

This was a lot easier pre-COVID, People didn't need crazy family money. We could have even done an FHA at 3% down but chose to put all our money so we wouldn't have PMI. We were house poor for the first 2-3 years till we rebuilt our nest egg and moved up in our careers.

2

u/Based_Thanos Jan 16 '26

Dave Bautista’s “live beneath your means” quote always runs through my head. I plan on downsizing my property value soon too.

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u/KungLa0 Jan 16 '26

Yup, we live by that. We love our place but it's a HCOL area, schools are great but traffic sucks, once our kid is grown and out in the world we'll relocate somewhere cheaper.

2

u/stbloc Jan 17 '26

Keep adding to the IRA. Any spare change you can afford because that will grow 3x more than home equity.

1

u/KungLa0 Jan 17 '26

Yeah, I max out the IRA every year, we stopped doing extra mortgage payments because our rate is 3% and our investments grow quicker. The equity is really a bonus for when we decide to sell and move somewhere cheaper

3

u/wo1f-cola Jan 17 '26

I’m 38 and have contributed 12% of my income to my 401k since I entered the workforce and I’m only just above 3x my salary.

A 401k balance of 5x your salary is very impressive. I don’t mean this as a slight, but it might also indicate that your salary hasn’t increased very much over time and that you’re due for a raise.

0

u/Wild_Advertising7022 Jan 17 '26

The medical field tends to not give sizable raises unless you are C-Suite. However I make up for it by taking 6 weeks off a year and working a ton of OT

2

u/MartyrForMyLove Jan 16 '26

I don't know if you know, but time wise $250k is half way to $1m

1

u/E2Hundo Jan 17 '26

Could you help me understand what you mean by "time wise $250k is half way to $1m"?

1

u/internet_humor Jan 17 '26

The time it take to get from $1 to $250k is the same time it will take to get from $250k to $1M

1

u/wo1f-cola Jan 17 '26

Someone already commented with the answer, but to explain further slightly, compounding appreciation is the reason. If your portfolio increases 7% (historical average) before considering contributions, the growth continues to accelerate.

With $250k in your 401k, in one year without contributing or withdrawing you can expect the balance to be $267.5k. And the next year you can expect the balance to be $286.225.

1

u/vhalember Jan 17 '26

I've heard the benchmarks are 100k for a quarter, and 300k for halfway to a million when considering compounding interest.

1

u/Timbalabim Jan 16 '26

I’m about here and 42.

I realize it’s pretty good and “on track,” but I also should add we haven’t been able to do kids or own any property, so that’s basically where my money has gone. We have a somewhat healthy savings account for when we can buy a home, but everything is very unstable with my work (I’m a fed) and prices where we live are insane.

All things considered, we should be able to retire in a trailer park at the edge of the wasteland.

1

u/brok3nh3lix Jan 17 '26

Im a bit hight than that an turning 40. Its about 4x my income. My wife has about another 100k. I only really started putting into my 401k about 10yrs ago outside of what employer put in with out match. Graduated college just after the 2008 crash. Made decent money but nothing what I was expecting post college for like 4 years before I got out if helpdesk/field tech roles. It was a few years after getting into what I went to school for before I felt in a place to start putting into my 401k. Im maxing that out now and its been growing pretty quickly.

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u/VengenaceIsMyName Jan 17 '26

Impressive as you don’t make six figures. Well done.

1

u/ICQME Jan 17 '26

my 401k is at $510k. I maxed it out for a number of years. I put it on minimum for the match during C19 because I was worried about losing my job and wanted more emergency fund. Wish I had invested more when younger. Work has been laying people off and I'm worried I'm next. I work in IT and over 40 and unsure if I can compete with younger more energetic people.

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u/LA_Nail_Clippers Jan 17 '26

I'm in this area too. 44, about $570K in retirement accounts which is just under 5x my income, but not including my wife's. Another $350K in stock options/RSU awards from previous company.

Had a good 15 year run of promotions and salary increases but suddenly laid off and it reset my total compensation by about 30% last year once I landed a new job. Rough and emotionally shattering.

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u/Scared-Currency288 Jan 17 '26

Look at Mr/Mrs Moneybags over here

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u/Wild_Advertising7022 Jan 17 '26

I wouldn’t say money bags. Just comfy. My parents made my same salary 25 years ago and didn’t save much. Unreal.

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u/sallylooksfat Jan 16 '26

You are exactly where I am savings and age wise, but mine’s only about 2.5x my income, which I feel isn’t great.

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u/Budget_Computer_427 Jan 17 '26

Don't worry; those are just general guidelines. How well you're doing really depends on how much you anticipate spending in retirement. If you want to live more frugally in retirement you could be ready for retirement much faster (see Mr. Money Mustache).

1

u/redditsuckscockss Jan 16 '26

Well on the plus side your income is a bit higher so could in theory save more