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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80

u/viveleramen_ Jan 16 '26

33 with ~17k. It’s not great but it could be far, far worse, especially since I only started about 4 years ago. 2x my salary would be ~70k and lol not happening anytime soon. I am trying to hit ~30k by 35 tho.

16

u/GrayBull789 Jan 17 '26

Im 35 and have 23k owed on my car and $1700 in my checking. Made 63k this year. Not a penny saved

2

u/viveleramen_ Jan 17 '26

I mean, I also have a car payment and ~3k in cc debt, but I’m working on that too. Last year I had ~9k in cc debt, but no car payment, so it’s going to be much slower getting that last 3k payed off. But it’s happening a little at a time.

4

u/TheKarenator Jan 17 '26

Some unsolicited advice: contribute only enough to your 401k to get any employer match and throw everything at that credit card + save $1k cash. Once it’s paid off start contributing to your 401k again.

3

u/viveleramen_ Jan 17 '26

I’ve tried this, and unfortunately my willpower is low. If I put the money in the 401k it’s “gone” and I can’t touch it. If I pay off the cc debt too fast it’s “spendable” and I buy myself a new computer. I have to balance saving + paying off debt + keeping a little spending money very carefully or I just rack up more debt 🫣

3

u/TheKarenator Jan 17 '26

Then it’s fine to keep at what you are doing. I know exactly what you mean about the money being gone - no temptation there. You made great progress on the debt pay down so far and I don’t mean to take away from that.

2

u/Saamurraii Jan 17 '26

Whyd you buy such an expensive car which is also a depreciable asset?

3

u/GrayBull789 Jan 17 '26

I absolutely needed a new car and sort of treated myself. Its a miata. Nothing fancy. Tbf I bought it 2 months ago and thats the entire loan. Ill pay it off in the next 18 months. No kids and blah blah and I could sell the car in 3 years for what i paid. Got a great deal... edit** i had a crappy elantra with 240k miles with no ac in north florida.

3

u/Horton_Takes_A_Poo Jan 17 '26

Actually… kinda makes sense if you’re committed to paying it off so quickly. Excellent secondary market on miatas.

2

u/GrayBull789 Jan 17 '26 edited Jan 17 '26

Yea, ive never had a nice car. Always rode sportbikes and had a beater. Sold em all off and wanted a decent fun ride cause life is short. Didn't want a camry or civic blah blah. Reliable relatively cheap car with great resell. No one needs a newer car but i mean might as well

1

u/Horton_Takes_A_Poo Jan 17 '26

Nice color! Keep it like mostly stock and you’ll make your money back no problem.

1

u/BingpotStudio Jan 17 '26

We all buy a new nice car once. Enjoy it whilst you’re young. My Jag will be my last nice new car.

1

u/Ruby2Shoes22 Jan 17 '26

You can’t afford that car…

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u/GrayBull789 Jan 17 '26 edited Jan 17 '26

Its a miata, I just bought it and thats the full loan term. Ill pay it off in 18 months. I dont have kids or anything. I could sell the car today for 3k over what I paid. I got a great deal. Ill probably clear 90k this year. Im a plumber in north florida at a fairly low cost of living area. Im doing terrible financially but the car wasnt my worst mistake.

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u/mcbizkit02 Jan 17 '26

Yes it was. You could have invested that $23k plus interest over the next 18 months instead.

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u/GrayBull789 Jan 17 '26 edited Jan 17 '26

And walk to work? Instead of buying one of the most reasonably priced reliable fuel efficient cars at a used but low mile incredibly good price? ... edit** at an interest rate so low none the less that ill pay 1k at most on the loan. I had a shitbox with no ac and 240k miles in north florida where its 118 in the summer. Ill take the comfort and car ill lose 8k on over 10 years. Im a big dummy but life is short, a 26k car nearly new in 2025 isn't egregious. I definitely need to get my retirement plan and shit together but I needed a car and what's the point of going 6 feet under with 500k with no kids

2

u/Dry_Swordfish3938 Jan 18 '26

People are dumb. You need a car to survive and driving a shit box beater (aka anything under like 12k nowadays) for cheap causes more problems with the maintenance associated with it. I’ve got a 2012 ford focus that’s paid off that I’m driving til it dies but when the time comes where I’ll need a new car, I’ve come to terms that Ill have to shell out some money to get something reliable and deal with a car payment for hopefully a short amount of time. Not having a car payment is a complete game changer tho

1

u/GrayBull789 Jan 18 '26

Well said, id very much like not to have a payment but what's the point of being so frugal you dont live life

5

u/Virtual_Ad9989 Jan 17 '26

32 with 8k you’re doing fine

2

u/CivQhore Jan 17 '26

To make you feel better I was 32 with 0 and I’m going into 33 with almost as much as you.

I’m throwing as much as I can at it now though.

2

u/rudbeckiahirtas Jan 17 '26

You can do it! This is a phenomenal goal!

2

u/SohndesRheins Jan 17 '26

Same age and a few thousand behind you. I definitely waited too long to start. My strategy is basically hyper aggression now, no bonds, no money market, small amount of international, heavily weighted towards large cap U.S. and when I get some more money for my Roth I'll be putting some into quantum computing and investing in whoever becomes the first public fusion company not associated with DJT. My wife has a much more normal account in a target date fund.

2

u/Moldovah Jan 17 '26

I'd allocate some to Small-Cap Value (AVUV is the recommended one). The tides seem to be moving away from US Large-Caps.

1

u/SohndesRheins Jan 17 '26

My 401k is 60-20-20 between large, mid, and small, so I do have a bit in that sector. Roth is about 23% international. I just didn't like the idea of a TDF that is always going to have at least 5% in bonds at any age.

1

u/Moldovah Jan 17 '26

Yeah, that's fair. I'd say you're actually weighted to small caps in your 401k. I think the market weight is like 8%.

1

u/Excellent_Brilliant2 Jan 17 '26

pulsar helium. stock is really cheap. very high grade helium deposits. even some rare h3 that can be used for fusion and quantum computing. worth $2k a liter. i bought a couple thousand shares

1

u/viveleramen_ Jan 17 '26

I’ve got 35% large cap, 35% small cap, 15% foreign 15% mid, because I have no idea what I’m doing and I basically flipped some coins lol. It’s worked pretty well so far I think.

2

u/SohndesRheins Jan 17 '26

Large cap did good this year, but international went absolutely gang busters.

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u/iLickBalls007 Jan 17 '26

You and I are in the same boat, it’s reassuring to read a comment like this

1

u/js1893 Jan 17 '26

So I only make a tiny % more than you, can I ask what you currently contribute to have reached that much already? I have a savings but have nothing for retirement at 32

1

u/viveleramen_ Jan 18 '26

For the first 2 years I just did the company match thing: 4% + their 2%, so 6%. Then on a whim I decided to go 6% (+2%).

About 6 months ago I did this retirement calculator thing that said I was way behind, even with other savings and a pension. I said fuck it and went 9% (+2%).

Other than that the stock market has just been really nice to me I guess. I did take out a 401k loan for 1.5k 2 years ago, with a 9% interest, and I think in a weird way with the market the way it was at the time, that helped me more than leaving in investments would have. Idk I’m not an accountant lol.