Average 401(k) Balance by Age (2022 Edition)
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Hi. I am trying to convince a family member to do the employer 401k. But his employer does not contribute. Can you still show that it is a good idea to participate?
$5,400 a month in retirement lol. Did he not pay off his house? You probably really only need a thousand if you got everything paid off.
Do I subtract same percentage if I have a pension? Does the 25 percent include a employer match? I’m trying to figure out as I have a gov employee pension I contribute 6 percent to, and then a 457b that I put 10 percent in atm.
Hey guys, love the content. Next time you toss up one of these longer episodes, can you chapters (or whatever YouTube calls them) for the different age groups. Cheers
40s start at 37:40
Do these numbers at Average Contribution Rate and then how much times you should have when you are 30, 40, 50… when you make a ton of money? Say someone makes $150k a year… they might need or have the ability to put in 2.6x 150k at age 40.
As a millennial, the challenge I always have with seeing numbers shown and generalized in topics like this is the underlying rat race assumptions still used that come from previous generations. You work the same job your whole adult life with moderate raises, save X percent, get to "retirement age", then relax and use your saved money to live the rest of your life.
This normalcy in previous generations led to financial experts taking average incomes, extrapolate X years saving X amount, assuming you will still be spending 80% income in retirement, etc. and then pushing that formula resulting in reinforcement for people forming their lives into a pre-defined box. Back in the day, that was totally fine since that's what most of society was. Companies did this themselves with pensions, and then that task ended up getting pushed to the employee (401k).
Personal finance is critically important for everyone to learn, but it's exactly that. Personal. My opinion is to learn the principals and habits you need to learn for your own situation and goals, and then run the numbers from there. Don't compare yourself to "others on the curve" or let someone put your life in a predefined box because in today's society there are a million variables that differentiate us.
I am a millennial fortunate to be making a 6 figure income, have no debt, have multiple investments and cash saved and will likely be FIRE by 40, but according to "the formula", i'm technically way "behind the curve" in my 401k because the places I've worked never had a 401k match or profit sharing so I decided to put my money elsewhere. Doesn't bother me one bit because I choose not to put myself in the box that previous generations put themselves in and urged me to follow. Society is different now. You do you, boo.
How do you get 60k+ limits. Need a breakdown on different contributions to get there
Just started a company with a SIMPLE IRA. Won’t be able to max it out but I’m excited to get it going
My employer offers no help with my their sponsored 401k, but they do have private stocks which you can only receive by working for the company they average about 18% growth YAY. So far this year it increased by 22%
The government keeps taking money out of the account bc they claim i am a HCE (highly compensated employee) who earns over 120k a year. So watch for that.
AND… You can leverage the Rule of 55, where you can quit your job and withdraw from your 401k penalty free if you don't want to wait.
I am 29 years old and I currently have a 401k worth $43k. At 27 I bumped up my contribution rate from 12% to 20%. I just bumped it up to 25%.
So I’m in the military and a few years back they switched to the blended retirement system as opposed to the high three system. On the high three, for anybody who doesn’t know, at 20 years you would retire with 50% base pay every month. It was optional to put money into the TSP, 401(k). With the blended retirement system TSP’s are mandatory with a total match of 5% BUT you only receive 40% base pay at 20.
I did not opt into the blended retirement.
I personally would rather know I had an extra few hundred dollars each month starting at age 41 for the rest of my life while also still putting upwards of 16 to 17% into my own TSP.
I have about $50K in my 401K and another $30K in my brokerage. Been saving for 5 years.
They seemed confused why people didn't get the full match, but it is somewhat obvious, it is that you need to contribute a certain percentage with most employers to get the full match. If you can't afford to contribute 8% and your employer matches up to 8% then it makes lots of sense that you wouldn't get the match.
26yr old 39k, 401k
When your right your right. I’m 52 and didn’t start saving like I should until about 45. It hurts how right you are about you will hate yourself for not taking care of your future self.
Lol who can afford to put 25% of your income on a 401k. I mean this is a sound plan and all but for an average person 25 is a lot.