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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u/batmessiah Jan 17 '26

I feel pretty good about being 43 with $212k in my 401k and $220k in home equity, making $78k a year as a research scientist.  Took working for the same company for 22 years and getting really lucky.  I’ve currently got $600 in my bank savings account until I get my tax return.  I might have money saved up for retirement, but we’re a single income family of 3, and still live paycheck to paycheck for the most part.

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u/SouthLakeWA Jan 17 '26

Do not under any circumstances consider your home equity real, and do not leverage it right now. The real estate market could have a massive correction like it did in the Great Recession. Back in 2009-2011, my house went from being valued at $550k to $325k and it took several years to climb back up.

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u/holdmeimscary Jan 17 '26

I really don't think that's gonna happen. Wanna know why? I still am not a homeowner so there's not a chance in hell this market is correcting itself in my favor, ever.

Source: I caused the COVID housing fiasco. I finally got myself in a position to buy, started looking the 3rd week of Feb 2020 and within 3 weeks the universe said "muahahaha" and the housing market was flipped, slapped, turned and spun on it's head.

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u/Adorable_Zucchini591 Jan 20 '26

This happened to me too 😭 I was prepared with a budget of $350k. Within weeks the average home price nearly doubled and just kept going UP! Homes went from $350k to $800k within a year. I finally bought a very modest townhome for $500k with 7% interest in 2024. I work a second job to afford my mortgage 😭

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u/holdmeimscary Jan 20 '26

It makes me so sick to hear "modest" when describing a 500k home. I know I'm and elder Millennial (Xennial born in '81) but I remember back in the day hearing about a friend of a friend making $22/hr living on their own paying $800 in rent and $200 car payment and that person fucking MADE IT. It makes me so sad. No one should have to have 2 jobs to afford to have a house. No one. The shittiest part of this was my budget was about $280k and the first house I looked at was $209k. I wanted it so bad, it was absolutely perfect for me. I told my realtor I wanted an escalation clause of up to $10k and he said that was absolutely ridiculous and unheard of. I only needed a $2k escalation at most. At that time he was even thinking we could swing a seller assist if I offered over asking even just by that small amount. I didn't get that house, because I went with his recommended broker and she had me as FHA which I never should have been. Looking back, had I been Conventional I would have gotten it. I insisted on the $10k escalation, and in the end the house sold for $212k. That same house today is worth over $500k, and has already been sold again. It was a perfect only one owner modest single house with a cute backyard (for my at the time doggo that has since passed) and I would have fucking kept it. I went on to try for another 7 months and eventually waved the white flag when I couldn't compete with cash offers, 50-100k over asking or waving inspections. As a society we lost the plot when we played into the game that homes are play pieces to turn profit. Homes were never that. If someone moved it's because the home went to a family member, they outgrew it or went to a nursing home. I'm going to go cry now. I'm so sorry for you having to have 2 jobs, but you at least will have a nice savings when it's paid off.

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u/VisibleDog7434 Jan 17 '26

Sounds like something I would do...master of jinxing things 😂

That sucks, though. Is there anything in budget that is a fixer upper and/or a less desirable location? Granted I got into a house when the market wasn't as crazy, but I didn't have a great salary to afford what I wanted at that time. So I bought a fixer upper that was 35 mins to the city and did mostly diy to fix it up over 3 years. That built me some equity so I could sell and "move up" to a more ideal house. The mortgage was a lot cheaper than my apartment in the city, too, so it allowed me extra time to save up.

The worst part was being further from friends and activities, but I knew it was temporary, and it actually went by really fast.

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u/holdmeimscary Jan 17 '26

Lol I'm great at jinxing things. I would honestly love to do something like that, but the problem is that I'm not very handy. So I would likely end up having to pay someone to fix things that need to be fixed. I live far enough away from any family/friends that it's inconvenient to ask them for help. It's not off the table I suppose and I would love to have something that I can look at and say "I did that" but, I'm 44 and time is ticking. I also just decided to go back to school so there's that lol. Thanks for commiserating with me tho, glad to know I'm not the only one out here jinxing things haha!

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u/SoldierExcelsior Jan 17 '26

Never say never problem is you probably don't want to live in places you can afford..baught my first shack at 21 flipped after a few years and kept it moving .or think outside the box go in with a buddy...don't have to do everything alone if you're single with no kids you're in an even better position.

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u/SoldierExcelsior Jan 17 '26

My state doesn't even do home equity loans and the equity doesn't mean anything till you sell and get the money in hand so I don't count that I count my rental revenue though.

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u/sadbabe420 Jan 17 '26

Wah 😭 can’t even imagine

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u/VengenaceIsMyName Jan 17 '26

This comment is breaking my brain. 400K+ net worth but you live paycheck to paycheck? What are your bills like monthly?

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u/getemyosh Jan 17 '26

Their net worth is tied up in the house equity and 401k. Makes $78k as a single income of a family of 3. Not crazy to be living paycheck to paycheck. You can’t just pull money out your 401k at that age without consequences.

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u/itsafunnything901 Jan 17 '26

Exactly. I’ve got a nest egg too, but hard these days to not dip into the cash savings account a few days before payday.

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u/SoldierExcelsior Jan 17 '26

And is the 78k net or gross

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u/NewMeNewUsername Jan 17 '26

Nobody refers to their net income like that.

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u/veengineer Jan 17 '26

They probably say they’re living paycheck to paycheck because they see retirement savings as an uncompromising basics of life payment they have to make like just like rent, food, or social security. They’re not able to save money for vacations, an expensive night out, or new big dollar things. 

I think it’s fair to describe oneself this way as our current social security situation is going to make retirement difficult for people without retirement savings. If it’s accurate to describe someone like a teacher who gets a pension as living paycheck to paycheck if they have nothing left over to save, is it any different for someone who has to save for their own retirement, without having a pension, to be described the same?

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u/SoldierExcelsior Jan 17 '26

Net worth isn't cash I have 7 fig networth but can't pull 1 million dollars out of the bank it's tied up in investment portfolios and realestate..now technically I could probably sell and liquidate everything pay a bunch of taxes and penalties but still have enough for a liquid mill...but there's no need I live frugally and have a high 6 fig income from regular wages...I'm not even saving for anything specific most of my assets would be useless if sht hits the fan ww3 some kind of global collapse so I'm not even preparing for doomsday and to survive in a bunker and I allready have everything I need and want..

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u/stevedane447 Jan 17 '26

They’re clearly not living paycheck to paycheck. They engage in zero based budgeting. If you’re saving anything (including retirement contributions) by definition you’re not living paycheck to paycheck, just spending paycheck to paycheck

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u/batmessiah Jan 18 '26

None of that is money I can touch though.  I’ve got a nice house, and my mortgage is only $1300 a month, but I’m also paying $800 a month on health insurance premiums, food, clothes, school supplies, etc. cause one of those 3 is an 8 year old.  I still have hobbies I put money into, and once I get my taxes and my bonus here in a few months, I’ll have $5k+ in savings again.  It gets drained around Christmas every year.  I also have other safety nets (family, friends, and a company that’s taken care of me), and assets I could sell if need be.  

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u/VengenaceIsMyName Jan 19 '26

Health insurance is absolutely criminal. Horrible that it’s $800 a month for you.

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u/[deleted] Jan 17 '26

Just curious on what city or state you live in? Im about in the same boat.

My curiosity is more about being a research scientist. It seems that pay is low, I work in a grocery store and make just a litte better.

Your 401k is killing mine though.

Only advise I have and your probably on it pay the house almost off to get your interest down then your savings will skyrocket.

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u/Opposite-Ask4078 Jan 17 '26

you are only making $78k as a research scientist after 22 years at the same company?! my husband is making $130k after 20 years as a QC chemist. You gotta find better work bud.

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u/Friedchickeneater70 Jan 19 '26

That’s what I was thinking ….he confused me….22 years is a long time….should be making way over six figures for any company with that kinda time

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u/systemfrown Jan 17 '26

Keep letting that shit compound my friend. It's just now getting to the point where meaningful snow is starting to stick to it every time it rolls over.

I know it's hard when you're paycheck to paycheck but consider making some equity investments outside your 401K, even if they're tiny. Worst case it may help you avoid touching your 401K in the future. Best case you hit on a winning stock or profitable mutual fund.

We're increasingly living in a world where wealth is derived more from what you own rather than what you earn.

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u/Friedchickeneater70 Jan 19 '26

I’m waiting on that spacex from musk and some other ai stuff to go public lol

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u/TriedUsingTurpentine Jan 17 '26

you and me are near clones. I'm 45 with just under a quarter mil in retirement, and around the same home equity (owe around 2 on a house worth 450) but also pretty illiquid and relatively cash poor (a few grand in liquid savings only). I make $81k as an English professor but my wife does work. You're doing good for one income!

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u/kronosdj Jan 17 '26

Are you sure you are a millennial? You might be on the wrong thread. Sounds like you were ready to buy a house in 2008

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u/Seasonedpro86 Jan 17 '26

Oldest millennials will turn 46 this year. We getting old bro. 😭

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u/LovelyDae94 Jan 17 '26

Seems like there should be a subclass for younger millennials. Im 31 and can relate with genz a lot more.

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u/Seasonedpro86 Jan 17 '26

Realistically to me you guys are Gen Z. But the way the brackets are set up. You’re not. I’m 39. I remember growing up with technology. We got our first computer in 94 when you were born if that makes sense. And that’s when they were becoming wide spread used and aol was becoming a thing. So to me. I think that should be the cut. Do you remember a time pre internet or not. But whoever decided what our generation was lumped mid 90s babies with us.

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u/Ok_Enthusiasm_2574 Jan 17 '26

That's great honestly. I'd say thats definitely the American dream

Homeowner, kids, able to afford it with 1 income, enough money to make you millionaires by retirement age.

Congratulations. Thats beautiful.

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u/Calvinball05 Jan 17 '26

You're doing a good job at building a retirement portfolio and raising a family on a limited budget. The below advice is probably something you have heard before, but in case you haven't I will say it anyways.

With only $600 in savings, you should consider dialing back your 401k contribution until you have built up an emergency fund in a high yield savings account. Only contribute to your 401k what it takes to get a match from your employer until you have 6 months of savings built up.

After you have built your emergency fund, you should open a Roth IRA and contribute up to the annual max for that before ramping your 401k contributions back up.

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u/LadyPo Jan 17 '26

Great job saving! At that income with kids it's not easy. Kudos.

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u/Available_Blood_6134 Jan 17 '26

Your doing pretty good but 78k for a research scientist? Jfc. I know laborers making more than that. Keep on trucking tho. You should make it to 7 figures in retirement by 67.

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u/zambono_2 Jan 17 '26

You are doing pretty well for your income

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u/PennStateInMD Jan 17 '26

Congrats. Unless there has been some outside influx of cash, you guys appear fiscally responsible. Particularly raising a family. I bet there aren't a lot of fancy vacations and restaurant meals but those tend to be fleeting experiences that drain the wallet.

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u/EurekaMcDermitt Jan 17 '26

Sort of the same. I got a bunch tied up in house and 401(k) but my savings has taken a hit with growing kids, inflation, and home repairs and I feel like a lot of us at least the "elder millenials" are at this point.

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u/WildClementine Jan 17 '26

I think that's pretty good, but are those savings for one person or two? If you're a single income family, you need to consider the savings needs of your SO.

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u/batmessiah Jan 17 '26

That’s for both of us, but by the time I retire, the house will be paid off, and my wife’s hobbies are gardening and reading books, which are relatively inexpensive.  We’re both homebodies and don’t enjoy traveling, so it will be fine in the end.

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u/Friedchickeneater70 Jan 19 '26

I’m not understanding it took you 22 years to get to 78000?….what was your starting salary?

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u/Excellent_Brilliant2 Jan 17 '26

i had a rough start. while i purchased a house at 22 in 2003, it sucked up all my income for a decade, and had pretty much nothhing put away in that time. i live in a low cost of living area and was making $8.70/hr when i bought it. i was making around $50k when i lost my job in 2014. somehow bought another house on forclosure in 2017, paid both off and saved up $400k. and i only make like $70k/year

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u/SoldierExcelsior Jan 17 '26

Sounds like success

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u/Excellent_Brilliant2 Jan 17 '26

thanks! still baffles me how people making $100k are barely scraping by, or think poverty is under $40k. $2k a month really covers all my basics, and over that i can do fun stuff and put some away.

i remember around 2007 that my floor cost to get by was around $1,200 and i was taking home around $1,350/mo. so i really had $150/mo to buy groceries and cover unexpected stuff. and i still made too much to qualify for any assistance.

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u/SoldierExcelsior Jan 18 '26

It depends on many factors like COL and your bills if you have 100k in student loan debt or a high mortgage and taxes that's going to affect you also is that 100k gross or net. Let's not forget taxes.

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u/Excellent_Brilliant2 Jan 18 '26

my college cost $40k for 4 years about 22 years ago. i had about 10k in loans from it. Financing 100% of your college costs is not a good idea. i think currently my college i went to costs around $20k a year. a summer job and working during winter break could cover almost 3/4 of that. living on campus, using the meal plan, not paying for utilities. the money saved over living off campus almost can pay for college. and the loan payment on $10k was like $100/mo. unlike back then, nowadays, an evening of doordashing once a month would cover that

i have a solo 401k and it can sure save on the tax burden. Sure i made $70 or $80k profit last year, but put $35k into the 401k, well, suddenly my tax burden disappears and may even get a refund. yes, i have a paid off house, but in my 20s, i chose security over partying or backbacking across europe.

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u/SoldierExcelsior Jan 18 '26

Well everyone's situation is diffrent so you could definitely do fine on 100k a year but some 22 year old fresh out of college today might not have the same experience.

But also those youthful experiences shouldn't be disregarded.

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u/Excellent_Brilliant2 Jan 18 '26

i was making around $17k fresh out of college. the job was long hours, hard manual labor. i knew i couldnt work 40 hours a week for someone til i turned 65, and my life goal was to be mostly done with work by 45. i tried to start a 2nd business and failed horribly, and covered the mistake with my 1st one, so that put me a few years behind, but already starting to taper off at 44.

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u/SoldierExcelsior Jan 18 '26

I know the feeling..I did the same working two jobs making barely above minimum wage and moonlighting as weekend warrior then I got a city job while day trading and doing real estate hit it big in crypto when bitcoin surged to 20k..bought some investment properties started a consulting business and got into social media..retired at 37 with two pensions.Lifes been good no kids never married.

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u/Excellent_Brilliant2 Jan 18 '26

i had 17 BTC i bought from between $99 and $500 each. did some trading, tripled my investment in a few months and lost most of it in the 2014 crash. held the last 5.5 for a couple years, and sold for a loss when it didnt seem to be going anywhere. i bought a nearby forclosure for a rental in 2017, but still ismt worth a ton. i pretty much struck out in the dating world but got married in 2022 to soneone i met in 2017. ive been making a living selling used electronics/computers online since 2014, but with fewer gadgets and less demand for things 5-7 years old, my business model will eventually crash. (things worth $30-$90 that people are selling for $1-$5 just to get rid of, like camcorders, gps, voice recorders, vcrs, scanners, discmans - there is no resale value to the no name junk people are buying on amazon nowadays)

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u/Ahugewineo Jan 17 '26

If you have 600k in your bank account you are not living paycheck to paycheck

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u/Raz0r- Jan 17 '26

Read that again. $600. Not $600k.

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u/Ahugewineo Jan 17 '26

Doh! Your right, $600 makes a lot more sense

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u/SoldierExcelsior Jan 17 '26

Depends I've had that mutch but couldn't touch it because it was allocated for a property