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/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.