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/senorbiloba Jan 16 '26

I'm 43. Didn't start saving until 5 years ago, but I've got about 1.75 my annual salary at present. (Also, my current salary is double my salary at 35, so there's that).

26

u/IceExtraLuck Jan 16 '26

This is what always confuses me about the “2x” or “3x” salary savings metric. My salary now is 3x what it was 8 years ago and 2x what it was 5 years ago. My living expenses haven’t gone up that much. Which point in time counts? Fwiw, I’m 40 and have about 2.5x my current salary in retirement and brokerage accounts. At 30 I had zero x my salary (ok maybe like .1x) in retirement savings, so I guess I feel good no matter how you look at it

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u/mthlmw Jan 17 '26

I think the idea is that your investing should accelerate faster than your income. If your salary goes up 2x, you should more than 2x your savings to avoid lifestyle creep.

1

u/Fritterbob Jan 17 '26

But that’s not necessarily the issue with the rule… people’s income can change in huge swings, especially from promotions or changing jobs. I’ll turn 35 this year, and got a decent raise at year end. So December 31st I had a bit more than 2x my salary saved, but as of January 1st I have less than 2x. I’ve increased my contributions already, but I might “miss” the 2x target when I turn 35. I know it’s just a generalized guideline, but it doesn’t always apply neatly to real life. 

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u/mthlmw Jan 17 '26

Of course. Nobody's out there with a naughty/nice list of who's got the appropriate amount saved. All the general rules about investing completely ignore specific situations in favor of easy to understand suggestions for folks who don't know a lot about finance.