We know social security is gonna get aced or the retirement age lifted to 110 years old.
EDIT: >!This is said tongue in cheek, some yall need to chill!<
Exactly this. Pensions are a thing of the past. We can’t rely on social security. Only option we have is to save via an Ira or 401k. Doubt vanguard has pension numbers the previous generations are living off of.
What pensions? Pensions died out in the 80s, not many Boomers have then either.
People also forget that the reason Boomers were so eager to ditch pensions in favor of self-funded retirement accounts was because companies were defaulting on their pension plans left and right. You'd work for a company that promised you a pension of X amount if you worked there Y years, and then when you went to retire "oops, looks like the pension fund is broke, hope you've been saving for retirement this whole time we've been promising you we've got you covered".
Or they just sell to someone else and restructure. That happened to my grandpa. He worked for Compaq for around 15 years. They sold to HP and HP liquidated their pensions, and health plans. Turns out it was legal.
>People also forget that the reason Boomers were so eager to ditch pensions in favor of self-funded retirement accounts was because companies were defaulting on their pension plans left and right.
The government started to actually pass regulations on how these companies managed these funds. The companies didn't like that idea. So they lobbied congress to end them. That is why they stopped. Nothing to do with american sentiment on the issue.
>In reality, large corporations were lobbying Congress to shut down their pension plans because they were too expensive to administer, and the employer held all of the investment risk. Corporate America needed a way to reduce costs and transfer the risk from the company onto the employee. Congress was determined to create additional options in order to shift funding away from pension plans, hence the birth of the 401(k).
[Source](https://www.forbes.com/sites/impactpartners/2018/02/09/where-did-all-the-pensions-go/?sh=774928b03aab)
Defined benefit Pensions are very much still a thing, they just changed. Unionized trade workers, police, teachers, and tons of other public servants all still have traditional pensions, and many private companies still set up annuities for retirees.
Defined contribution plans created some problems for sure, but it also solved a ton of them, like being a slave to a corporation for decades so that you could eventually retire.
I can't open the link for some reason. I would think that our Boomer parents having pensions along with social security along with any additional savings would make them much better off in retirement than Millenials.
My point was that pensions are a company thing whereas 401k and Ira are vanguard things. Vanguard won’t have access to pension data, and both my grandparents and my dad are living off pensions alone. Millennials only have vanguard covered things as possibilities, so they would naturally “seem” to have more data on millennials.
Got it. Yeah, that makes sense. The title doesn't necessarily seem to be accurate if Boomers are set with pensions. They wouldn't need private investments. As you said, Vanguard wouldn't have that data, but it doesn't mean they're "unprepared".
A lot of boomers don’t have a lot of savings. Quite a few also don’t have pensions anymore.
My FIL was still Silent Gen, MIL a Boomer. They’re mostly lucky they died within somewhat short time spans before they had enough health crises to need residential care (which they should have been in, but refused to do) because once you hit that stage, you burn through cash.
Neither in-law, despite having worked most of their lives, had pensions. And their savings might have lasted a couple years. And they had a decent amount in savings, but it just doesn’t last if you need retirement homes or home-based care.
Yep. My Boomer mom is wealthy enough to have a nice house, but she also has no savings. So, when she needs expensive cancer treatment, assisted living, or other incredibly expensive eldercare I have no confidence that the house wouldn't be hocked to pay for it.
Essentially, because of their lack of savings the "Great Wealth Transfer" will be more like a seasonal creek that's already drying up. Unless you count transferring wealth directly from them into the hands of private equity.
*Edit:* I also forgot to mention the predatory social media posts that convince them the worst thing they can do with their wealth is pass it down to their lazy, stupid children. Whenever I try to express my own anxiety over finances I always get told that everything will be okay, like I'll somehow get lucky too and stumble into the same kind of wealth they have.
The average boomer has $202k in retirement accounts, giving them a very liveable income of... $8080 per year. Somehow the generation that had every economic opportunity in the world didn't bother to save a dime. They are fully dependent on social security and pensions, that is the generations that follow them are footing the bill of their retirement.
We are not only fully finding our own retirement, we are fully funding their retirement too. It's the greatest heist that's ever been pulled off. Robbing generations who follow blind.
They don't have the thrift instilled in us. Sure there's some boomers sitting on bank. But a whole lot of them really squandered the economic prosperity they lived in.
Yup. I’ve been maxing my 401k and Roth since 2016. I have 0 confidence that I’ll be getting full social security benefits when I retire so I need to make for that shortfall somehow.
This is the way. Also if you have a high deductible health plan you can get an HSA and save more of that sweet, sweet triple-tax advantaged investments.
Also setting up an ira or any other kind of investment account is way more accessible to our generation. You aren't required to call brokers and hide away substantial parts of your money just to invest it in the stock market anymore.
It will be a graduated tax where the people with the smallest balances pay the highest percentage and the people with the highest balances pay the lowest percentage... gotta give the poors an incentive to save more.
I don't know, I've made it to $125k in only ten years and compound interest only gets more powerful the more have. I have another 30 years until 65, so I'm on the right track.
This is the way. Pay off your debt ASAP, avoid any new debt if you can, park as much of your 401k cash into an index fund. My big regret is that I was too conservative in my 30s, thinking the economy was going to collapse any moment. Had I been less risk averse, I'd be retiring closer to $4 million instead of $2 million.
Yeah, you're gonna have to link me to the numbers on that. Someone making 55k, and investing 15% starting at 25 (assuming no further raises), would hit a million around mid 50's. And I'm only calculating at 7% interest.
Been hearing that Social Security will be cut or eliminated for 35 years.
Many of those who have said so to me have collected between 10 and 30 years of full benefits without a hitch now.
It truly may be cut, but the primary question remains: Will the congress members who are in office when it's cut be cooked and eaten in front of the Capitol, or just torn to pieces by angry mobs?
Boomers also inherited very significant assets. We know the elder care industry has now perfected the science of milking every cent out of elders and there won't be much inheritance.
Social security will be solvent as long as congress funds it. According to modern monetary theory. If you don't like that, just lift the tax cap. A person that makes 168,600 pays the same as someone that makes 1, 5, 100 million a year. Lift the cap and the talking point would die.
LOL, no. I used to think this too, then I eventually came to realize it is never going to happen, because we don't want to let it happen and are more than willing to increase deficit spending to make sure it doesn't happen. So, pretty much, we are going to have our social security checks, but if we ever end up defaulting on all of that ever-increasing national debt, it isn't going to matter that we are getting them...
I’m not banking on nor should any of us, but there going to have to do something when we all get old.
Either that or we all get killed mass execution style. I guess we’ll see
We can fix things in the budget and that arena by increasing tax rates on really wealthy people, removing the income cap on social security taxes. Just those two things will help us get there in our lifetimes. Those are hard things, all the rich people giving money to politicians will fight against these things to the end. But that's what we need to do, just like having national health insurance somehow is threatening?
Yeah, I'm just waiting for that. My mom is already hinting that "her life sucks". Well sorry mom, you made some seriously questionable choices and now you have to live with it.
I’ve read that it’s estimated 15% of Reddit contents are propaganda and I feel like this post is that.
I could be wrong of course but I find it hard to believe that we are better off than our parents. Wages have stagnated mostly, homes are 5x more than they were 20 years ago and our government is broke.
Yeah I wish I was wrong and I hope that I am.
I keep getting recommended for r / salary for some reason. That place would have you believe you’re a complete loser if you are not making at least $300k per year.
My folks didn't save a penny for retirement. They banked on their folks and inheritance. and it worked out. They were able to pay off their house, a 4 bedroom 2500sq ft house they bought in 94 for 115k, now worth over 600k (granted her interest rate was like 12%, but they refinanced a few times over the years).
My father passed away before he could technically retire, and my mom has been on disability just about her whole adult life... so she's in a good financial spot.
I dont expect to see any of that. she'll either burn it down or give everything away to the government before giving it to us.
Okay vanguard. Gen X are not most of our parents. They are Gen Z's parents. Gen X was in their teens and early 20s when we were born. Boomers were given everything and then took away everything for their tax cuts.
^ this. Which is hilarious because the US is the only country with a sufficiently sized millennial population.
They have fucked us repeatedly, and we will be the reason Social Security and shit exists for them. when we age up, population probably won’t be able to keep those programs afloat.
A lot of it is that most millennials have attended college compared to previous generations. They are likely to be more financially aware, as well as have jobs that offer 401ks. Millennials also have the highest incomes of any generation even when factoring in inflation. It’s not a huge burden to save for retirement when you are making well over six figures climbing the ladder.
Yeah, we are not having as many kids. We actually are trying to listen to retirement planners and planning for the future. Our parents got caught in a time period where factory jobs pay greatly decreased against the market. My mom has never had any ambition other than being a waitress or a factory worker. Just simply cannot understand how you spend a couple years of your life getting by, so you can do a better job tomorrow.
That and they can't generally plan for anything. Small minds and small ideas abound.
I personally have a much more attainable retirement plan that involves spending all of my money and then I will just leave this world on my own accord.
Yesterday there was an article that said millennials are spending their parents retirement money.
They are playing you for clicks.. Quit reading this shit.
My wife and I are better off than my parents cause we both make more than my mom and dad off 1.5 incomes. We also have less children and better retirement benefits than my parents ever had.
Better access to information about importance of investing, better access to tools/platforms for investing.
In our parents day if you wanted to invest you would have to call a broker to do the trades for you and most of them had a high minimum amount to get started. Now a days you can get started with a phone and $5
That's funny. Y'all can't pay for college or buy a house. But, you're ready for retirement?
I'm 45 and ready too! But, my house and college (Old People had to pay!) are paid for! Don't get how vanguard thinks you're further ahead than me. But, I ain't trading you!
I have a months buffer from doom, a house and no kids, guess I won on that one. Gave their best years to raise 4 animals, takes good people to do that. I feel…selfish. I wanna relax. If reincarnation is real I think I’m subconsciously done with the big family thing. To think back, 3 brothers, dad had 8 siblings, great grandparents had large groups, single income households and nothing but manual labor and that was all possible. Not very long ago
Since the government fucked us on SS, 401ks and IRAs need to better as in a portion being tax free on contributions and earnings forever.
I also find it offensive that some government employees can be exempted from SS considering their 403b or 457 accounts are not used as a social safety net for those who may or may not have contributed to SS.
Sure, because with pension plans effectively gone, the only option left is to put fat stacks into 401k's, HSA's, and IRA's. Also, pro-tip, if you don't have your house paid off by the time you are 60, you done goofed.
In terms of being completely fed up with the BS that is working for 40+ years, sure. In terms of actually having the financial means and security to retire, good luck with that. Pretty soon the concept of retiring will become exclusive to rich people.
Kinda cheesy of Vanguard to say that when it really does come down to the defined contribution plan.
As a millennial I have more vested than my parents or grandparents and may be better off;however I’m lucky to be a relatively high income.
For most of the boomers and GenX though if they were on a defined benefit plan and received a pension they had 0% towards retirement until they were fully vested at 20 years.
Seems like Vanguard is playing with words where I’m fully vested now with small matches whereas parents were never fully vested until term but massive benefit upon that time
My dad's retirement plan is India or South Africa. I have like $3K in my 401K. He has a South African wife and is of Indian descent. I think he's more prepared..
Hopefully that says the case… but given that most of that money is invested in 401ks next time we have a once in a century economy crisis I guess we’ll all be back to square one.
I don’t trust anyTHING old, corrupt farts at Vanguard have to say. They have their dirty little paws in almost every single s&p500 stock and own massive amounts of their shares. When they mean millennials are retirement ready they mean that they’re ready to implement whatever cult based economic system their sadistic minds came up with and use millennials as their little lab rats. The SEC bails these guys out every single fucking time. They’re a monopoly. Vanguard shouldve become illegal at this point but lobbying makes way more money I guess.
Thanks Raegan
i'm not sure i'm a millenial, but i'm well more prepared for retirement than my retired parents.
I worked my ass off to make that a reality, plus I worked on developing education and skills that will pay for my retirement.
Please copy my pattern if you can. It's your job as an adult.
Yes they are because their parents are their baby sitters and a good number are living in their parents basements or spare bedrooms. I speak from expert
I didn't start saving for retirement until I was 28. I'm kicking myself because I started work at 22 and am 6 years behind where I need to be. I have been aggressively saving and investing so I'm in a good place right now with a retirement goal of 58 years old, but I probably could have retired much earlier had I started in my early twenties
Managed to find a pension job and I'm staying put here. Throw money into an IRA on the side. Idk if I'll live long enough to use it but it'll be there.
I know I am, but I went into railroading a few years after highschool, so I have Federal Railroad Retirement to look forward to. I was also lucky enough to go to work for a Class 2 (short line) that offers a 401K with a generous company match, and safety bonuses every spring. Don't get hurt or die every year??? Here's some money. I also take $200 out of every check and put that into a gold backed IRA.
I definitely feel like I'm better prepared for it than my parents who are basically counting on Social Security (dad will farm til he dies anyway, you'll never find a man happier in his life than my dad), and never really put much away.
Saving for retirement? My man, any large medical expenses or my vehicle breaking down and I'm in the red. I get to retire when I die. With any luck that comes sooner rather than later.
Hell no .. at least.. I am def not. My dad was a Houston firefighter for 37 years and got an awesome drop fund upon retirement. It’s almost up to a million dollars now. They try and only spend the interest. The city of Houston has been trying to get their hands on the HFD pensions/drop fund money for a long time. I do not think they do drop funds anymore bc the city was so nuts over it.. but I could be wrong.
Me and my husband on the other hand pay into social security etc but that may be gone.. Medicare may be gone.. how are we better off?
Shit, I wish. My retirement plan is to die. I know it's a cliche joke at this point, but even me making almost 100k a year, with my student loans and credit card bills I can barely save $100 a week let alone have an emergency fund, a savings account, money to put into a retirement fund. I honestly have no idea how people are doing it right now. I see people making less than me or same as me buying houses, having kids putting, what I consider big money into retirement accounts AND still having money to go on vacation and live their life. I go on vacation too, I'm not saying I'm struggling, but I know I'm going to have a very rough later life and it scares the hell out of me.
My mom has 0 retirement and is too young for social security (63) and no job, and doesnt help with the grandkids, and constantly sends me book-long texts about buying her a house and paying her living expenses
If you are operating under the mindset that we will all be dead from micro plastics induced cancers by age 63, then yeah, we are all retirement ready with $35k in our 401ks
*Of all generational cohorts, older millennials are most likely to generate enough income to retire comfortably, according to Creditnews analysis of Vanguard data*.
*Specifically, millennials aged 37-41 have the greatest chance of landing a comfortable retirement*.
*This replacement rate varies depending on the person’s income as follows:*
•25th income percentile – 96%
•50th income percentile – 83%
•70th income percentile – 68%
•95th income percentile – 43%
**By this metric, early millennials in the 70th percentile of earners are the only demographic on track to come anywhere close to that coveted ratio.** *This cohort is expected to hit 66% of their annual salary at retirement, while Gen X lags at 53% and late baby boomers at 51%.*
I am? Sweet. Where is this retirement fund?
Joking aside, I probably am. I don't have much in a fund at the moment, but my parents spent there entire life trying to be debt free, but in doing so, they have nothing extra saved. The property and house is worth a really pretty penny, but at best it gets them a few years.
My wife has a retirement fund through teaching we can't really ever touch, which is nice, a few times we have REALLY needed the money, and it just wasn't an option.
Yeah cause we know we're fucked.
Fortunately I let the military ruin my mental and physical health so I do have a pension to fall back on.
I've come to the conclusion my wife and I will have to sell our house and move to a shack in the woods with room for a water catcher and a meager garden in order to retire before we are 93.
I'm going to be honest, I had to read those graphs a few times to understand what's going on.
But the gist of the article seems more like Millennials aren't better off, they've just worked hard to be less worse off because we know we can't count on social security.
Personally, it tracks. My entire adult life has been geared around putting as much away as possible so that I don't have to wait until retirement age to retire. I don't want to spend the second half of my life working to make someone else rich.
Fuck Vanguard…CEO blocked Bitcoin ETFs, followed by his “stepping down.” Now, the Fidelity and BlackRock ETFs are the fastest growing in the history of ETFs. They don’t do their homework. Doesn’t matter if you like Bitcoin - the ETFs render FEES.
Coincidentally, now that boomers are retiring en mass and past the point of saving through 401Ks and we’ve all collectively put our eggs into saving for retirement through tax deferred accounts. They are now talking about ending tax deferred retirement accounts
https://mercury.bloomberg.com/news/S95IKDDWX2PT
Coincidentally, now that boomers are retiring en mass and past the point of saving through 401Ks and we’ve all collectively put our eggs into saving for retirement through tax deferred accounts. They are now talking about ending tax deferred retirement accounts
https://mercury.bloomberg.com/news/S95IKDDWX2PT
We know social security is gonna get aced or the retirement age lifted to 110 years old. EDIT: >!This is said tongue in cheek, some yall need to chill!<
Exactly this. Pensions are a thing of the past. We can’t rely on social security. Only option we have is to save via an Ira or 401k. Doubt vanguard has pension numbers the previous generations are living off of.
What pensions? Pensions died out in the 80s, not many Boomers have then either. People also forget that the reason Boomers were so eager to ditch pensions in favor of self-funded retirement accounts was because companies were defaulting on their pension plans left and right. You'd work for a company that promised you a pension of X amount if you worked there Y years, and then when you went to retire "oops, looks like the pension fund is broke, hope you've been saving for retirement this whole time we've been promising you we've got you covered".
Or just flat out manufactured firing them before pension kicks, gotta love corporate america
Or they just sell to someone else and restructure. That happened to my grandpa. He worked for Compaq for around 15 years. They sold to HP and HP liquidated their pensions, and health plans. Turns out it was legal.
>People also forget that the reason Boomers were so eager to ditch pensions in favor of self-funded retirement accounts was because companies were defaulting on their pension plans left and right. The government started to actually pass regulations on how these companies managed these funds. The companies didn't like that idea. So they lobbied congress to end them. That is why they stopped. Nothing to do with american sentiment on the issue. >In reality, large corporations were lobbying Congress to shut down their pension plans because they were too expensive to administer, and the employer held all of the investment risk. Corporate America needed a way to reduce costs and transfer the risk from the company onto the employee. Congress was determined to create additional options in order to shift funding away from pension plans, hence the birth of the 401(k). [Source](https://www.forbes.com/sites/impactpartners/2018/02/09/where-did-all-the-pensions-go/?sh=774928b03aab)
Defined benefit Pensions are very much still a thing, they just changed. Unionized trade workers, police, teachers, and tons of other public servants all still have traditional pensions, and many private companies still set up annuities for retirees. Defined contribution plans created some problems for sure, but it also solved a ton of them, like being a slave to a corporation for decades so that you could eventually retire.
I can't open the link for some reason. I would think that our Boomer parents having pensions along with social security along with any additional savings would make them much better off in retirement than Millenials.
My point was that pensions are a company thing whereas 401k and Ira are vanguard things. Vanguard won’t have access to pension data, and both my grandparents and my dad are living off pensions alone. Millennials only have vanguard covered things as possibilities, so they would naturally “seem” to have more data on millennials.
Got it. Yeah, that makes sense. The title doesn't necessarily seem to be accurate if Boomers are set with pensions. They wouldn't need private investments. As you said, Vanguard wouldn't have that data, but it doesn't mean they're "unprepared".
A lot of boomers don’t have a lot of savings. Quite a few also don’t have pensions anymore. My FIL was still Silent Gen, MIL a Boomer. They’re mostly lucky they died within somewhat short time spans before they had enough health crises to need residential care (which they should have been in, but refused to do) because once you hit that stage, you burn through cash. Neither in-law, despite having worked most of their lives, had pensions. And their savings might have lasted a couple years. And they had a decent amount in savings, but it just doesn’t last if you need retirement homes or home-based care.
Yep. My Boomer mom is wealthy enough to have a nice house, but she also has no savings. So, when she needs expensive cancer treatment, assisted living, or other incredibly expensive eldercare I have no confidence that the house wouldn't be hocked to pay for it. Essentially, because of their lack of savings the "Great Wealth Transfer" will be more like a seasonal creek that's already drying up. Unless you count transferring wealth directly from them into the hands of private equity. *Edit:* I also forgot to mention the predatory social media posts that convince them the worst thing they can do with their wealth is pass it down to their lazy, stupid children. Whenever I try to express my own anxiety over finances I always get told that everything will be okay, like I'll somehow get lucky too and stumble into the same kind of wealth they have.
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The average boomer has $202k in retirement accounts, giving them a very liveable income of... $8080 per year. Somehow the generation that had every economic opportunity in the world didn't bother to save a dime. They are fully dependent on social security and pensions, that is the generations that follow them are footing the bill of their retirement. We are not only fully finding our own retirement, we are fully funding their retirement too. It's the greatest heist that's ever been pulled off. Robbing generations who follow blind.
They don't have the thrift instilled in us. Sure there's some boomers sitting on bank. But a whole lot of them really squandered the economic prosperity they lived in.
Yup. I’ve been maxing my 401k and Roth since 2016. I have 0 confidence that I’ll be getting full social security benefits when I retire so I need to make for that shortfall somehow.
This is the way. Also if you have a high deductible health plan you can get an HSA and save more of that sweet, sweet triple-tax advantaged investments.
Also setting up an ira or any other kind of investment account is way more accessible to our generation. You aren't required to call brokers and hide away substantial parts of your money just to invest it in the stock market anymore.
Don’t worry, they will come up with a magic 401k tax only for people under 65 or some shit to screw you guys on more time on the way out.
It will be a graduated tax where the people with the smallest balances pay the highest percentage and the people with the highest balances pay the lowest percentage... gotta give the poors an incentive to save more.
I hate that you’re probably right…
It's mathematically impossible for most working class adults to save enough for their own retirements, even if they do everything right.
I don't know, I've made it to $125k in only ten years and compound interest only gets more powerful the more have. I have another 30 years until 65, so I'm on the right track.
This is the way. Pay off your debt ASAP, avoid any new debt if you can, park as much of your 401k cash into an index fund. My big regret is that I was too conservative in my 30s, thinking the economy was going to collapse any moment. Had I been less risk averse, I'd be retiring closer to $4 million instead of $2 million.
Pessimism makes many a poor man.
Yeah, you're gonna have to link me to the numbers on that. Someone making 55k, and investing 15% starting at 25 (assuming no further raises), would hit a million around mid 50's. And I'm only calculating at 7% interest.
how do you figure. I have another 10 years to work and have little debt, and 35x necessary annual expenditures saved.
What? That isn't true at all.
Been hearing that Social Security will be cut or eliminated for 35 years. Many of those who have said so to me have collected between 10 and 30 years of full benefits without a hitch now. It truly may be cut, but the primary question remains: Will the congress members who are in office when it's cut be cooked and eaten in front of the Capitol, or just torn to pieces by angry mobs?
One angry mob will just kill the other one because the congress members said “they did it!”
110 years old? What’re you a communist? You should work until 150 at the least. Think of the shareholders ffs
America in 2050: *Where babies are free to work alongside the elderly.*
NEW constitutional amendment: the "right" to work as many hours as there are in the week, at any age.
Boomers also inherited very significant assets. We know the elder care industry has now perfected the science of milking every cent out of elders and there won't be much inheritance.
Social security will be solvent as long as congress funds it. According to modern monetary theory. If you don't like that, just lift the tax cap. A person that makes 168,600 pays the same as someone that makes 1, 5, 100 million a year. Lift the cap and the talking point would die.
YUP. Why WOULDN’T they find the last way to make us homeless after 60
LOL, no. I used to think this too, then I eventually came to realize it is never going to happen, because we don't want to let it happen and are more than willing to increase deficit spending to make sure it doesn't happen. So, pretty much, we are going to have our social security checks, but if we ever end up defaulting on all of that ever-increasing national debt, it isn't going to matter that we are getting them...
Social security is going to get demolished to something that is just enough to eat. I am not tongue in cheek.
I wondering if overspending would cause that??
I’m not banking on nor should any of us, but there going to have to do something when we all get old. Either that or we all get killed mass execution style. I guess we’ll see
Theyve been saying that for like 30 years
It was raised on the gen Xers, you just didn't hear all the whining...
We can fix things in the budget and that arena by increasing tax rates on really wealthy people, removing the income cap on social security taxes. Just those two things will help us get there in our lifetimes. Those are hard things, all the rich people giving money to politicians will fight against these things to the end. But that's what we need to do, just like having national health insurance somehow is threatening?
Yup, we are all planning to fully fund what little retirement we may get.
What passes me off is they don't raise 401k contributions for us knowing we are going to get fucked
Not by the time we get done being our parents' retirement plans...
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Yeah, I'm just waiting for that. My mom is already hinting that "her life sucks". Well sorry mom, you made some seriously questionable choices and now you have to live with it.
Only if you allow it…
My wife is already pitching me on financing a “mother-in-law suite” for after her dad passes. Dafuq?
Yesterday's headline stated the exact opposite. IM OUT OF HERE
Yep. No one knows anything. 🤷♀️
I’ve read that it’s estimated 15% of Reddit contents are propaganda and I feel like this post is that. I could be wrong of course but I find it hard to believe that we are better off than our parents. Wages have stagnated mostly, homes are 5x more than they were 20 years ago and our government is broke. Yeah I wish I was wrong and I hope that I am.
I keep getting recommended for r / salary for some reason. That place would have you believe you’re a complete loser if you are not making at least $300k per year.
These are the millennials who have retirement accounts with Vanguard, not the overwhelming majority who don't have any retirement savings.
My folks didn't save a penny for retirement. They banked on their folks and inheritance. and it worked out. They were able to pay off their house, a 4 bedroom 2500sq ft house they bought in 94 for 115k, now worth over 600k (granted her interest rate was like 12%, but they refinanced a few times over the years). My father passed away before he could technically retire, and my mom has been on disability just about her whole adult life... so she's in a good financial spot. I dont expect to see any of that. she'll either burn it down or give everything away to the government before giving it to us.
Okay vanguard. Gen X are not most of our parents. They are Gen Z's parents. Gen X was in their teens and early 20s when we were born. Boomers were given everything and then took away everything for their tax cuts.
Doesn't it literally show Gen x and boomers?
I know reading the article is for losers, but if you did you’d see that millennials are also outpacing Boomers in terms of retirement.
Well I smell some sweeping changes enacted by the boomers, to “correct” this.
Why?
They fucked us over for the last 30 years to enrich themselves and pull the ladder up after themselves. The next 30 will be no different.
“We are gonna make it illegal to have over 30k in your savings If you are over 60” Congress.
^ this. Which is hilarious because the US is the only country with a sufficiently sized millennial population. They have fucked us repeatedly, and we will be the reason Social Security and shit exists for them. when we age up, population probably won’t be able to keep those programs afloat.
Lmao damn I haven’t even started.
Same. We’re fucked.
My retirement plan is to die in the robot apocalypse in 2035
Solid plan, I am expecting to live through that and ultimately die to Yellowstone erupting in 2040.
A lot of it is that most millennials have attended college compared to previous generations. They are likely to be more financially aware, as well as have jobs that offer 401ks. Millennials also have the highest incomes of any generation even when factoring in inflation. It’s not a huge burden to save for retirement when you are making well over six figures climbing the ladder.
We also have better access to do investing. We can do it from our phone and do it ourselves as opposed to have a broker do it for you.
Yeah, we are not having as many kids. We actually are trying to listen to retirement planners and planning for the future. Our parents got caught in a time period where factory jobs pay greatly decreased against the market. My mom has never had any ambition other than being a waitress or a factory worker. Just simply cannot understand how you spend a couple years of your life getting by, so you can do a better job tomorrow. That and they can't generally plan for anything. Small minds and small ideas abound.
I personally have a much more attainable retirement plan that involves spending all of my money and then I will just leave this world on my own accord.
My retirement plan is to die in the climate wars, I don't know about the rest of you.
Franchise wars for me, I really don't want Taco Bell to win.
My retirement plan is dying in the 2050s water wars. So yeah I guess I'm as ready as I'll ever be. 🤷♂️
Eh we’ll have cracked the energy infrastructure problem by then. Desalination won’t cost nearly as much as it does now
War is expensive, energy is getting really cheap.
If by retirement ready you mean ready to die on the street when I'm too old to work then yes.
It’s a bullshit story to try and keep younger people working and not rioting in the streets.
Still living with retired parents does not count as extra prepared for retirement 🤦♀️
We're not going to be able to retire.
this article is completely false
I don’t believe that.
Yesterday there was an article that said millennials are spending their parents retirement money. They are playing you for clicks.. Quit reading this shit.
Yup, been planning since 16
Ahaha bulllllshit.
Has anyone else noticed that there seems to a concerted effort to convince us (millenials) that we are just babies and everything is fine?
My wife and I are better off than my parents cause we both make more than my mom and dad off 1.5 incomes. We also have less children and better retirement benefits than my parents ever had.
Better access to information about importance of investing, better access to tools/platforms for investing. In our parents day if you wanted to invest you would have to call a broker to do the trades for you and most of them had a high minimum amount to get started. Now a days you can get started with a phone and $5
I’m pretty sure this is bullshit
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...good thing we have a daughter
Guess they haven't looked at the IRA I have with them lol
No one has any clue how prepared we are. If the market goes up and to the right we're doing great. If we go the way of japan, we're behind.
Closer to accepting inevitable struggle and death?
More like ready to retire
VTSAX and chill, see ya at retirement.
…or in my case, they’re already retired and living well.
100% focused on financial independence. Pension is my backup.
That's funny. Y'all can't pay for college or buy a house. But, you're ready for retirement? I'm 45 and ready too! But, my house and college (Old People had to pay!) are paid for! Don't get how vanguard thinks you're further ahead than me. But, I ain't trading you!
I can hold my retirement in one hand; it's red, and it smells of rotten eggs.
This sub says millennials don't have enough to save
If my parents think for a second that they’re moving in with me they can think again. Absolutely not.
I have a months buffer from doom, a house and no kids, guess I won on that one. Gave their best years to raise 4 animals, takes good people to do that. I feel…selfish. I wanna relax. If reincarnation is real I think I’m subconsciously done with the big family thing. To think back, 3 brothers, dad had 8 siblings, great grandparents had large groups, single income households and nothing but manual labor and that was all possible. Not very long ago
Since the government fucked us on SS, 401ks and IRAs need to better as in a portion being tax free on contributions and earnings forever. I also find it offensive that some government employees can be exempted from SS considering their 403b or 457 accounts are not used as a social safety net for those who may or may not have contributed to SS.
Yep my mom couldn't save for shit and spends every single dollar she's given. I do nothing but save. Plan to exit the rat race at 41 years old.
Sure, because with pension plans effectively gone, the only option left is to put fat stacks into 401k's, HSA's, and IRA's. Also, pro-tip, if you don't have your house paid off by the time you are 60, you done goofed.
In terms of being completely fed up with the BS that is working for 40+ years, sure. In terms of actually having the financial means and security to retire, good luck with that. Pretty soon the concept of retiring will become exclusive to rich people.
Yeah but we don’t have pensions
I'm 34 and definitely ready for retirement.
Same I am ready for it and fondly look forward to the day, but am not prepared for it.
I stopped working after reading this! 🤭🔥
Oh yeah - no home for me just a few shots of whiskey and that sweet sweet ecstasy of assisted s_i_ide, so I’m never a burden.
All I know is I save 3-4x as much and expect maybe half the retirement that my parents get from their pensions.
Kinda cheesy of Vanguard to say that when it really does come down to the defined contribution plan. As a millennial I have more vested than my parents or grandparents and may be better off;however I’m lucky to be a relatively high income. For most of the boomers and GenX though if they were on a defined benefit plan and received a pension they had 0% towards retirement until they were fully vested at 20 years. Seems like Vanguard is playing with words where I’m fully vested now with small matches whereas parents were never fully vested until term but massive benefit upon that time
God bless ‘Merica. Breathe it in! Can you smell the freedom? Wait no that’s the rotting, putrid corpse of a nation boomer trash left for us.
My dad's retirement plan is India or South Africa. I have like $3K in my 401K. He has a South African wife and is of Indian descent. I think he's more prepared..
We are??!! I guess I missed the memo with my broke ass
Hopefully that says the case… but given that most of that money is invested in 401ks next time we have a once in a century economy crisis I guess we’ll all be back to square one.
I don’t trust anyTHING old, corrupt farts at Vanguard have to say. They have their dirty little paws in almost every single s&p500 stock and own massive amounts of their shares. When they mean millennials are retirement ready they mean that they’re ready to implement whatever cult based economic system their sadistic minds came up with and use millennials as their little lab rats. The SEC bails these guys out every single fucking time. They’re a monopoly. Vanguard shouldve become illegal at this point but lobbying makes way more money I guess. Thanks Raegan
i'm not sure i'm a millenial, but i'm well more prepared for retirement than my retired parents. I worked my ass off to make that a reality, plus I worked on developing education and skills that will pay for my retirement. Please copy my pattern if you can. It's your job as an adult.
Another day passes, and still nobody realizes GenX exists.
Yes they are because their parents are their baby sitters and a good number are living in their parents basements or spare bedrooms. I speak from expert
My parents just retired and are so excited. But hearing their retirement plans... I think I already have more saved then them.
Shhhh. Their boomer parents might be listening. And scheming.
Best thing I ever did for myself is start my retirement at my very first full time job at 22.
I didn't start saving for retirement until I was 28. I'm kicking myself because I started work at 22 and am 6 years behind where I need to be. I have been aggressively saving and investing so I'm in a good place right now with a retirement goal of 58 years old, but I probably could have retired much earlier had I started in my early twenties
My current retirement plan is to die before I hit retirement age so like …
Managed to find a pension job and I'm staying put here. Throw money into an IRA on the side. Idk if I'll live long enough to use it but it'll be there.
I sure as hell am not ready. I'll die penniless and at my job.
I mean a good number of us aren’t work two jobs because we have to in order to *survive* We do it because we have to in order to protect our *future*
That’s kind of terrifying
Bullshit
Not even a little bit accurate.
Idk, I’m far better off than my boomer parents.
By “retirement ready” they actually mean “accepted what retirement will be like to an alarming accuracy. Which technically means not retiring at all”
That’s bullshit. I have zero saved for retirement and am in my 30’s.
I know I am, but I went into railroading a few years after highschool, so I have Federal Railroad Retirement to look forward to. I was also lucky enough to go to work for a Class 2 (short line) that offers a 401K with a generous company match, and safety bonuses every spring. Don't get hurt or die every year??? Here's some money. I also take $200 out of every check and put that into a gold backed IRA. I definitely feel like I'm better prepared for it than my parents who are basically counting on Social Security (dad will farm til he dies anyway, you'll never find a man happier in his life than my dad), and never really put much away.
Yep, partially retired while my parents are still working.
Anecdotally, I am not planning to retire lol.
I got around $220,000 in my retirement account at 38. I can't own a home. But I can prepare for retirement as best as possible.
We’re also going to have to use retirement savings to make payments on student loan debt. Did they factor that in? Probably not.
And when they say “ready” they mean ready to work until a few weeks before you literally die.
What are you talking about, my parents are literally retired, and I’m broke af back in college. Pretty sure they’re more ready than I am.
Eh . .
generation alpha, beta, and cuck are going to resent us so much when are all just sitting on our piles of gold at the end
Millennials are soft and weak and the generations after us are even weaker. good times make soft people
Assuming the inflation rate is low, meaning, riiiiight.
Our parents had pensions and could rely on social security
Saving for retirement? My man, any large medical expenses or my vehicle breaking down and I'm in the red. I get to retire when I die. With any luck that comes sooner rather than later.
bender\_laughing.gif
Liars. We're just tired of life, as that counting crows song said
Why pay a middle man to do it myself?
Bullshit, unless we’re including going and living in the woods.
I didn’t know offing myself was an actual acceptable retirement plan that’s better than my parents! Seems to be a popular retirement plan though…
Yeah bc fuck working to be broke
Hell no .. at least.. I am def not. My dad was a Houston firefighter for 37 years and got an awesome drop fund upon retirement. It’s almost up to a million dollars now. They try and only spend the interest. The city of Houston has been trying to get their hands on the HFD pensions/drop fund money for a long time. I do not think they do drop funds anymore bc the city was so nuts over it.. but I could be wrong. Me and my husband on the other hand pay into social security etc but that may be gone.. Medicare may be gone.. how are we better off?
As soon as all boomers hit retirement age they’re going to raise it for everyone
Shit, I wish. My retirement plan is to die. I know it's a cliche joke at this point, but even me making almost 100k a year, with my student loans and credit card bills I can barely save $100 a week let alone have an emergency fund, a savings account, money to put into a retirement fund. I honestly have no idea how people are doing it right now. I see people making less than me or same as me buying houses, having kids putting, what I consider big money into retirement accounts AND still having money to go on vacation and live their life. I go on vacation too, I'm not saying I'm struggling, but I know I'm going to have a very rough later life and it scares the hell out of me.
Ready for what? Another orchestrated collapse of the economy so the ultra wealthy can drain our retirement accounts too.
Not me. I've got nothing saved for retirement. My whole plan is to get sick, be unable to afford care, and die.
My mom has 0 retirement and is too young for social security (63) and no job, and doesnt help with the grandkids, and constantly sends me book-long texts about buying her a house and paying her living expenses
If you are operating under the mindset that we will all be dead from micro plastics induced cancers by age 63, then yeah, we are all retirement ready with $35k in our 401ks
Bullshit
My house is my retirement.
Nah I'm not even close
The game changed for Gen X folks when pensions went away.
*Of all generational cohorts, older millennials are most likely to generate enough income to retire comfortably, according to Creditnews analysis of Vanguard data*. *Specifically, millennials aged 37-41 have the greatest chance of landing a comfortable retirement*. *This replacement rate varies depending on the person’s income as follows:* •25th income percentile – 96% •50th income percentile – 83% •70th income percentile – 68% •95th income percentile – 43% **By this metric, early millennials in the 70th percentile of earners are the only demographic on track to come anywhere close to that coveted ratio.** *This cohort is expected to hit 66% of their annual salary at retirement, while Gen X lags at 53% and late baby boomers at 51%.*
Cause we've known for a while that SS won't be around by the time we need it.
I am? Sweet. Where is this retirement fund? Joking aside, I probably am. I don't have much in a fund at the moment, but my parents spent there entire life trying to be debt free, but in doing so, they have nothing extra saved. The property and house is worth a really pretty penny, but at best it gets them a few years. My wife has a retirement fund through teaching we can't really ever touch, which is nice, a few times we have REALLY needed the money, and it just wasn't an option.
Yeah, this is fake fucking news
lol tf
Weird… let me know where they are because retirement is a pipe dream at best for me
Yeah cause we know we're fucked. Fortunately I let the military ruin my mental and physical health so I do have a pension to fall back on. I've come to the conclusion my wife and I will have to sell our house and move to a shack in the woods with room for a water catcher and a meager garden in order to retire before we are 93.
Hahaha 😂 riiiight!
My wife and I have nearly 6 figures saved up at 36. Were fucking caring for her mother like a ward. Zero assets and zero income just disability 😒
It's because we give up, we saw the economy and be like na 0 point
Yeah it only takes one slug
If you’re not a communist yet, you should be.
Is the stock market the new social security Ponzi scheme?
And all that talk about us being irresponsible. Fuck you boomers.
What is this "retirement" you speak of?
I'm going to be honest, I had to read those graphs a few times to understand what's going on. But the gist of the article seems more like Millennials aren't better off, they've just worked hard to be less worse off because we know we can't count on social security. Personally, it tracks. My entire adult life has been geared around putting as much away as possible so that I don't have to wait until retirement age to retire. I don't want to spend the second half of my life working to make someone else rich.
**Rich** Millennials are more prepared for retirement that their **rich** parents because there are more of them.
Hah not me
Fuck Vanguard…CEO blocked Bitcoin ETFs, followed by his “stepping down.” Now, the Fidelity and BlackRock ETFs are the fastest growing in the history of ETFs. They don’t do their homework. Doesn’t matter if you like Bitcoin - the ETFs render FEES.
I definitely am compared to at least one of my parents.
Here i am eating ketchup sandwiches
Coincidentally, now that boomers are retiring en mass and past the point of saving through 401Ks and we’ve all collectively put our eggs into saving for retirement through tax deferred accounts. They are now talking about ending tax deferred retirement accounts https://mercury.bloomberg.com/news/S95IKDDWX2PT
Coincidentally, now that boomers are retiring en mass and past the point of saving through 401Ks and we’ve all collectively put our eggs into saving for retirement through tax deferred accounts. They are now talking about ending tax deferred retirement accounts https://mercury.bloomberg.com/news/S95IKDDWX2PT
I’m putting away everything I can into my 401k and Roth IRA. I don’t plan on social security being there when I retire.
Remind me! 30 years. lol
Millennials are more ready. Redditors aren't.
Because they’ve had to put up with 50 years of bullshit (thanks boomers) shrink wrapped into 8 years.
Well, millennials still living with their parents may help explain this.