Current Events > Report: 66% of Millennials have nothing saved for retirement

(+) Yeah! (+)

http://money.cnn.com/2018/03/07/retirement/millennial-retirement-savings/index.html

But a new report shows just how far off track they might be. About 66% of people between the ages of 21 and 32 have absolutely nothing saved for retirement, according to the National Institute on Retirement Security. The report is based on Census data collected in 2014.

damn
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Millennials plan on killing retirement
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Hard to save when a lot of them have five-figure student loan debts to pay off
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Were_Wyrm posted...

Millennials plan on killing retirement

lmfao /topic
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Were_Wyrm posted...

Millennials plan on killing retirement

Boomers are already in the process of fucking that up too.
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Universal income will exist in 40 years probably

Why waste that money saving?

Just have 1 kid/2 kids and the last spouse living moves in with them

Sorry to the degenerates who were to cool to have a kid
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Awesome I'm better than at least 66%

Also I heard if you had no debt you're better off than 90% of Americans. I'm killing it.
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Millennials are in tons of debt and don't have the jobs to pay that debt off. It's the same reason they aren't investing in stocks either.
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its almost like the cost of living has gone up, student debt is through the roof, and income isn't exactly following pace...of course people are finding it difficult to save for retirement.
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fenderbender321 posted...

MuffinzwOrned posted...

Hard to save when a lot of them have five-figure student loan debts to pay off

Hopefully this will teach people that college is often times an absolutely terrible investment.

college used to be this thing where no matter what your degree was in, having a degree was extremely valuable. that's not the case anymore.

trade schools should be considered legit options for more folks. we will always need electricians, plumbers, etc. at least, until the robot revolution.
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bizarre gap; proudclad posted a month or so ago that the other third were well on their way to retirement targets, and a sixth were way ahead of them

@FLUFFYGERM plz repost link i dont have time to look for it today

it's interesting seeing a widening economic gap even between our peers
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That's not really surprising. The oldest Millennials are like 35 right? So the youngest 2/3rds of those would be either in school or just getting out of school. So idk why anyone would expect them to have money saved. The oldest 1/3rd have been working and have some savings.

EDIT: Didn't even read the OP lol. So yeah, if they're only looking at 21-32 year olds, of course a good chunk of people between like 21 and 27 won't have anything saved. They haven't been working for long and have to deal with debt first.
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lilORANG posted...

That's not really surprising. The oldest Millennials are like 35 right? So the youngest 2/3rds of those would be either in school or just getting out of school. So idk why anyone would expect them to have money saved. The oldest 1/3rd have been working and have some savings.

i found this part of the article especially interesting

About one-third are saving for retirement. Most have less than $20,000 but some have much more. The average account balance is $67,891, according to the report.

66% have 0 but the average is almost $70k
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Giant_Aspirin posted...

lilORANG posted...

That's not really surprising. The oldest Millennials are like 35 right? So the youngest 2/3rds of those would be either in school or just getting out of school. So idk why anyone would expect them to have money saved. The oldest 1/3rd have been working and have some savings.

i found this part of the article especially interesting

About one-third are saving for retirement. Most have less than $20,000 but some have much more. The average account balance is $67,891, according to the report.

66% have 0 but the average is almost $70k

I feel like that might just be the average of the third that are saving. I could be wrong, though
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TheVipaGTS posted...

its almost like the cost of living has gone up, student debt is through the roof, and income isn't exactly following pace...of course people are finding it difficult to save for retirement.

Haha pretty much this.

lilORANG posted...

That's not really surprising. The oldest Millennials are like 35 right? So the youngest 2/3rds of those would be either in school or just getting out of school. So idk why anyone would expect them to have money saved. The oldest 1/3rd have been working and have some savings.

EDIT: Didn't even read the OP lol. So yeah, if they're only looking at 21-32 year olds, of course a good chunk of people between like 21 and 27 won't have anything saved. They haven't been working for long and have to deal with debt first.

shrug.

ever since i was a teenager i've been operating on the idea that i should be saving 10% of what i make for retirement. when i was in college, my roommate made some extra money on the side by selling .... things, and he even took 10% of that income and saved it.

when i got my current job, part of the day-1 paperwork was for the 401k plan. i immediately opted for 10%. even if i had student loan debt hanging over my head i would have gone for something. even saving 3%-5%, especially that early in your career, will make a significant impact by the time you hit retirement age.
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Relative to inflation, tuition and rent are at an all time high, and wages are at an all time low. This isn't surprising in the least.
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Giant_Aspirin posted...

lilORANG posted...

That's not really surprising. The oldest Millennials are like 35 right? So the youngest 2/3rds of those would be either in school or just getting out of school. So idk why anyone would expect them to have money saved. The oldest 1/3rd have been working and have some savings.

i found this part of the article especially interesting

About one-third are saving for retirement. Most have less than $20,000 but some have much more. The average account balance is $67,891, according to the report.

66% have 0 but the average is almost $70k

Interesting, it's like the majority of the wealth is held by the top few while the rest live in poverty
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UnholyMudcrab posted...

I feel like that might just be the average of the third that are saving. I could be wrong, though

you are correct

it still reflects a very jarring gap in accumulated wealth among our peers

MuffinzwOrned posted...

Interesting, it's like the majority of the wealth is held by the top few while the rest live in poverty

yes, however what is unexpected is this is happening even among people who have not been in the workforce for long.
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Darkman124 posted...

yes, however what is unexpected is this is happening even among people who have not been in the workforce for long.

I'd be curious to see an age breakdown

I mean it's not preposterous to assume this is a factor, I'd just like to see the breakdown.
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Yeah that's bad, the rule of thumb is to save at least 10% of your paycheck to your savings account so it can accumulate money through interest rates.

EDIT: Thanks darkman124 lol
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Prestoff posted...

Yeah that's bad, the rule of dumb is to save at least 10% of your paycheck to your savings account so it can accumulate money through interest rates.

snicker
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Rule of dumb is a phrase I should use more often
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MuffinzwOrned posted...

I'd be curious to see an age breakdown

I mean it's not preposterous to assume this is a factor, I'd just like to see the breakdown.

would be worthwhile. i expect most of those on the far end of the data set have been in the workforce at least 5-10 years.
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Darkman124 posted...

Prestoff posted...

Yeah that's bad, the rule of dumb is to save at least 10% of your paycheck to your savings account so it can accumulate money through interest rates.

snicker

Well that was embarrassing lol
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Prestoff posted...

Yeah that's bad, the rule of thumb is to save at least 10% of your paycheck to your savings account so it can accumulate money through interest rates.

10%? good

savings account? bad

that money should be invested properly.
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Prestoff posted...

Darkman124 posted...

Prestoff posted...

Yeah that's bad, the rule of dumb is to save at least 10% of your paycheck to your savings account so it can accumulate money through interest rates.

snicker

Well that was embarrassing lol

not trying to be an ass but i actually consider the original post accurate and found the unintentional error hilarious because it set me in agreement with it

savings account interest rates are pretty much garbage. i don't even bother with one and my emergency fund is $30k.

for a young person, once you have an emergency fund you want to pump as much as possible into your ROTH IRA and 401k. definitely at least 10%, but ideally much more.
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I think some of us plan on having our creditors fund out retirement and then screwing them over when we die or declare bankruptcy.
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inflation outpaces the interest banks give you. You're losing money if you're letting it sit in a savings account.
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Prestoff posted...

Yeah that's bad, the rule of thumb is to save at least 10% of your paycheck to your savings account so it can accumulate money through interest rates.

EDIT: Thanks darkman124 lol

So the solution to living paycheck to paycheck is to just not live paycheck to paycheck? Wow, what a fucking enlightening post! I suppose next you'll be saying when there's no bread to eat, just eat cake instead?
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CircleOfManias posted...

So the solution to living paycheck to paycheck is to just not live paycheck to paycheck? Wow, what a f***ing enlightening post!

more generally, it's to find a way to cut costs until you live below your means
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Darkman124 posted...

CircleOfManias posted...

So the solution to living paycheck to paycheck is to just not live paycheck to paycheck? Wow, what a f***ing enlightening post!

more generally, it's to find a way to cut costs until you live below your means

"the best way to stop being poor is to stop being poor"
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MuffinzwOrned posted...

Darkman124 posted...

CircleOfManias posted...

So the solution to living paycheck to paycheck is to just not live paycheck to paycheck? Wow, what a f***ing enlightening post!

more generally, it's to find a way to cut costs until you live below your means

"the best way to stop being poor is to stop being poor"

That's not what he said at all
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Darkman124 posted...

yes, however what is unexpected is this is happening even among people who have not been in the workforce for long.

WTF? Not in the work force for long? Somebody in their early thirties has been in the work force for more than a decade.
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MuffinzwOrned posted...

"the best way to stop being poor is to stop being poor"

given the degree to which financial institutions and systems are designed to punish the poor, pretty much yes. payday loans often become a necessity that ensures there's no way out of the poverty trap.

UnholyMudcrab posted...

That's not what he said at all

i welcome the criticism, because it really is quite hard to dig out once you're in a debt cycle, which is the case for the majority of our poor. it's why so few of them even use banking accounts--if they did, they'd have all their assets seized. that's why 'checks cashed' places exist.

and as you might guess...those places take a cut.
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MuffinzwOrned posted...

Hard to save when a lot of them have five-figure student loan debts to pay off

TheBiggerWiggle posted...

Were_Wyrm posted...

Millennials plan on killing retirement

Boomers are already in the process of fucking that up too.

UnholyMudcrab posted...

Millennials are in tons of debt and don't have the jobs to pay that debt off. It's the same reason they aren't investing in stocks either.

TheVipaGTS posted...

its almost like the cost of living has gone up, student debt is through the roof, and income isn't exactly following pace...of course people are finding it difficult to save for retirement.

These.
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Its like cost of living has skyrocketed, cost of education has exploded, and wages aren't coming close to keeping up!

SAY IT AIN'T SO! SAY THE WEALTH WILL TRICKLE DOWN!
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r4X0r posted...

WTF? Not in the work force for long? Somebody in their early thirties has been in the work force for more than a decade.

that's not very long for subject matters like 'retirement fund size.'
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Darkman124 posted...

r4X0r posted...

WTF? Not in the work force for long? Somebody in their early thirties has been in the work force for more than a decade.

that's not very long for subject matters like 'retirement fund size.'

Except that your first pay check should have money going towards retirement.
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Cj_WlLL_VVlN posted...

Darkman124 posted...

r4X0r posted...

WTF? Not in the work force for long? Somebody in their early thirties has been in the work force for more than a decade.

that's not very long for subject matters like 'retirement fund size.'

Except that your first pay check should have money going towards retirement.

What are student debts

Godnorgosh posted...

I know people my age with no student loans who still basically can't save anything due to cost of living combined with poverty wages.

how much of that do you think is "lifestyle inflation"? aka people thinking their expenses are "needs" when, really, they're "nice to haves".

im not saying that everyone who has trouble saving falls into that category, but just look at this

https://sc.cnbcfm.com/applications/cnbc.com/resources/files/2017/03/24/FS-500K-Student-Loan.png
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Giant_Aspirin posted...

Godnorgosh posted...

I know people my age with no student loans who still basically can't save anything due to cost of living combined with poverty wages.

how much of that do you think is "lifestyle inflation"? aka people thinking their expenses are "needs" when, really, they're "nice to haves".

im not saying that everyone who has trouble saving falls into that category, but just look at this

https://sc.cnbcfm.com/applications/cnbc.com/resources/files/2017/03/24/FS-500K-Student-Loan.png

You literally linked to a couple that makes $500K

Godnorgosh posted...

Giant_Aspirin posted...

how much of that do you think is "lifestyle inflation"? aka people thinking their expenses are "needs" when, really, they're "nice to haves".

I'm talking more like "I have a college degree, I make $11/hr, I bring my lunch to work every day, and I have nothing or close to nothing left after rent and utilities. Also, I don't have Internet or health insurance."

Shouldn't have gotten a useless liberal arts degree then.
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clearaflagrantj posted...

Cj_WlLL_VVlN posted...

Darkman124 posted...

r4X0r posted...

WTF? Not in the work force for long? Somebody in their early thirties has been in the work force for more than a decade.

that's not very long for subject matters like 'retirement fund size.'

Except that your first pay check should have money going towards retirement.

What are student debts

Loans that people take out in order to go school? They should be paid off and faster than the minimum. It doesn't mean you shouldn't save. Tighten the belt and have an emergency fund and retirement.

If you're going out and spending 150 on meals a week it's time to paper bag it. If you're dropping 100 at a bar every weekend it's time to start going less.

There are probably people that are absolutely incapable of saving anything but they're few and far between.
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Darkman124 posted...

r4X0r posted...

WTF? Not in the work force for long? Somebody in their early thirties has been in the work force for more than a decade.

that's not very long for subject matters like 'retirement fund size.'

Joking? Simply funding an IRA starting at age 22 would mean you have $70,000 by 32 and that's only five grand per year. You should be putting way more than that into savings. Millennials don't have retirement savings because millennials are more interested in $800 phones and going on vacation every six months than being financially responsible.
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Godnorgosh posted...

Giant_Aspirin posted...

how much of that do you think is "lifestyle inflation"? aka people thinking their expenses are "needs" when, really, they're "nice to haves".

I'm talking more like "I have a college degree, I make $11/hr, I bring my lunch to work every day, and I have nothing or close to nothing left after rent and utilities. Also, I don't have Internet or health insurance."

If you have a college degree and make $11/hr, you made some pretty shitty choices on the way to where you are now.
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