Median boomer retirement account $144,000
- Thread starter SoapyCy
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Also keep in mind that every time you get divorced you lose half of it. Kind of a joke but not really.
I wonder how many people have accounts that they've forgotten about. If I didn't clean house a couple of years ago, I probably would have left a couple of them behind.
Yeah at that age you would assume no mortgage so really its monthly bills and taxes.
This is another aspect that hasn't been discussed yet...lots of people don't realize how much you need to save to even have a modest retirement.
My brother is 44, so he's got 20-25 years left. He probably makes $60k or so, and his wife probably as much as he does. I think he's put the bare minimum into his retirement, and definitely has not paid attention to how much he SHOULD put in. My dad mentioned to him that he should strive to get at least $1M in savings by the time he retires. My brother didn't believe him and basically told him it was impossible to save that much money.
The best way would be to die quickly.
More seriously --
Add to that Social Security and pension income.
Hope your kids will be "generous" with their time and money.
Hope you stay generally healthy and can continue working (at least part-time).
Have your house (and cars) paid off in a low property tax area.
Do not live fancy. Books are free.
Like I said, I doubt that $144k number is the full portrait.
I'm sure that's not a full picture but still I'm sure many of that generation are not in great shape. Not that I assume the ones down the line are much better.
Makes me feel ok where I'm at though.
Makes me feel ok where I'm at though.
this attitude is pervasive and limits people improving their lives. this is not a judgment or criticism of him, but if you never think you're going to be or have anything why start? i saw that attitude a lot when i worked for a non-profit. the people we helped weren't bad or stupid, they just didn't think spending money on dumb stuff was a bad idea because they knew they'd never have much. if you'll never have much why strive to start?
i started saving cash in middle school and started saving for retirement when i got my first job a decade ago. it was only $50/month at the time but now i'm maxing out my Roth IRA and putting 10% into my 401k plan. paying off student loans was the biggest single influence in me being able to save more money.
Boomer here, obviously.
Not comfortable talking about my situation in depth. I have a government pension after 30 years of employment with DOD - and yes, damn glad I do. Spent many years earning less than peers in private business in hopes I would get that pension at retirement. (Edit: and that gov't pension is not free - over 30 years almost $150k was deducted from my checks for that)
And even though I worked way more than 40 quarters for SS outside of my Gov't job, I will get around $250/per month from that because there are rules for 'double dippers.' (My father did the same and got his full SS check because those rules were not yet in effect - so even though we boomers may have it good, the WWII generation had it even better.)
I had part time jobs starting 1972 and started my gov't career in January 1981. I did not do an IRA that first year but did every year thereafter until I retired.
I also did the maximum over-age-50 allowed make-up savings/investments. And also invested in individual stocks/mutual funds outside of that.
I basically lived on 40% of my take home pay for the last 5-10 years I worked.
So I definitely have the $144k number beat. It's worth it to be 'comfortable' in retirement. Having a decent home in Iowa and a beachfront condo in Florida was my dream/goal and I made it happen. Yes, big scares in 2008 and again this year, but you have to just keep on investing and saving if you don't want to live in a van down by the river.
Not comfortable talking about my situation in depth. I have a government pension after 30 years of employment with DOD - and yes, damn glad I do. Spent many years earning less than peers in private business in hopes I would get that pension at retirement. (Edit: and that gov't pension is not free - over 30 years almost $150k was deducted from my checks for that)
And even though I worked way more than 40 quarters for SS outside of my Gov't job, I will get around $250/per month from that because there are rules for 'double dippers.' (My father did the same and got his full SS check because those rules were not yet in effect - so even though we boomers may have it good, the WWII generation had it even better.)
I had part time jobs starting 1972 and started my gov't career in January 1981. I did not do an IRA that first year but did every year thereafter until I retired.
I also did the maximum over-age-50 allowed make-up savings/investments. And also invested in individual stocks/mutual funds outside of that.
I basically lived on 40% of my take home pay for the last 5-10 years I worked.
So I definitely have the $144k number beat. It's worth it to be 'comfortable' in retirement. Having a decent home in Iowa and a beachfront condo in Florida was my dream/goal and I made it happen. Yes, big scares in 2008 and again this year, but you have to just keep on investing and saving if you don't want to live in a van down by the river.
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How did this study measure 401s? My 401 is a significant part of my "retirement accounts".
56 year old boomer here with small IRAs, and large 401 and large pension lump sum balances.
We've been 40-ish% equities for a few years now. We're back above where we were pre-March simply because of risk profile (and some luck) and where the market is working.
I take full credit for hiring a great money management firm.
My brother is defeatist, so his attitude doesn't surprise me. He owns a brand new truck ($35k +/-) a brand new motorcycle ($10k +/-) and travels the country every summer to go to dirt track races. Yet, within 30 seconds of ever speaking to him, he'll starting complaining about how he has no money and is being screwed by anyone and everyone. Life is about making choices and accepting what comes with them. It's ok to have nice toys, but you can't then complain that you have no money when you're dropping 25% of your income on said toys.
hmm, and I thought I was below normal. It appears I'm better off than I thought after I retired.
I don't know about you, but I'm constantly going back and forth between "Do I have enough?" vs "Am I being too conservative?" I'm mid-30s so I've probably got 30-40 working years left, barring medical/injury events. I get my 15% of gross saved every year between company match, 401k, and IRA contributions. I was luck that for the first 7 years of my career, I had an employer who matched my 6% with 10%, so I was putting away 16% of my pay starting in my early 20s.
That being said, I do wonder if it's too conservative, at times and if I should be doing more to enjoy life now. Like, not being so stingy when looking at new toys or trips for my wife and I, and our family.
So he collects depreciating assets and doesn't realize thats part of his problem. His attitude is very common unfortunately. People don't attain a million net worth by living this way, so in reality he's right...
Lucky for him, its not too late to start to turn it around.
Here as well. We started saving late so I was worried about saving enough. We're almost 40 with about 2x our salary in our 401. I also have a pension still, but I don't really want to rely on that at all. I assume it'll be cashed out at some point.
Right on the nose, brother. It's been sad to watch. As I've grown up (he's 8 years older than me) and developed my own values, I've seen his to be the exact opposite. My values are centered around hard work, empathy, growing through difficulty, etc. My brother's is all about getting screwed left and right, constantly having "no money," etc. Unfortunately for his son, he's getting raised with the same attitude.
Didn't make the team? Coach hates you.
Got called out on a third strike? Ump is screwing you.
Gave up 10 runs in the first inning while pitching? Your teammates screwed up and didn't back you.
Life's gonna suck for that kid, because the world is gonna slap him in the face and he's just gonna keep on thinking it's everybody else's fault except his own.
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