this post was submitted on 02 Jun 2024
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[–] CaptainSpaceman 53 points 5 months ago (4 children)

A new survey shows the significant gap between how much millennials expect they need to retire ($1.7 million) and what they've roughly saved so far ($63,000)

Also $1.7m today is like $4m by the time millenials hit retiremwnt.

[–] tsonfeir 38 points 5 months ago (2 children)

My company’s 401k person came in to sell their wares, and I did that inflation math in front of them. I think I made a lot of employees afraid for their future.

[–] ampersandrew 9 points 5 months ago

If you put your money in index funds, you can expect it to beat inflation by about 7-8% on average, especially over the course of a decades-long working career. It's usually not worth it to ever look at the non-adjusted projected value.

[–] [email protected] 6 points 5 months ago (1 children)

Did they even match? No match is madness.

[–] tsonfeir 9 points 5 months ago (1 children)

50% up to 6% (so 3%). But its vested over 5 years… which is a middle finger if you ask me.

[–] [email protected] 4 points 5 months ago (1 children)

Is that vesting for each contribution? For every company I've worked at, it's 0% vested until X years, then 100% immediately vested for all contributions.

[–] tsonfeir 4 points 5 months ago (1 children)

It’s 20% per year. It’s not… bad… but this 401k is going to be a joke when I retire.

[–] errer 1 points 5 months ago (1 children)

My company is similar, but over 3 years. It’s a weird way for them to save a few thousand bucks per employee who quits (since you get the full amount by the 3 year mark).

[–] tsonfeir 4 points 5 months ago

Or gets laid off… if they fire them, they should have to pay 100%

[–] [email protected] 22 points 5 months ago

I thought I was doing well and that I had a chance, but saving multiple millions for retirement sounds impossible. If I want retirement, I’ll probably have to move to a low cost-of-living country.

[–] [email protected] 2 points 5 months ago (1 children)

So If I rob a bank 6 times, I could reach the average savings?

[–] CaptainSpaceman 2 points 5 months ago (1 children)

better off robbing poor people, less likely to get investigated

[–] [email protected] 1 points 5 months ago

I don't think they got enough to steal.

[–] Denalduh 2 points 5 months ago (1 children)

63000 saved?? Yeah sure. Just checked my bank account and I got a whopping $27 in the savings account.

[–] CaptainSpaceman 2 points 5 months ago

Im guessing they used avg and not median