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To give you an idea of how your retirement savings stack up against your peers, check out the average 401(k) balances in Fidelity accounts, as of the second quarter of 2018, broken down by age. The data was provided to CNBC Make It by Fidelity, the nation's largest retirement-plan provider:
Age 20 to 29: $11,500
Age 30 to 39: $42,700
Age 40 to 49: $103,500
Age 50 to 59: $174,200
Age 60 to 69: $192,800
I think just looking at the mean is a little misleading. This article references the same Fidelity data and states that 168,000 Fidelity accounts have over $1,000,000 and that 1 in 6 retirees are millionaires. https://www.cnbc.com/2018/08/16/the-...-new-high.html
The fact of the matter is that many people, even those who have employer sponsored retirement plans, simply do not make enough to be able to save a lot.
I'm 32 and playing catch up. I'm saving $457/pp. into my 403b now. I have about $12,000 in there so far. I didn't make above $45,000 until I was 28, and made well under $40,000 for most of that time. If you're making at that level, there's not much left over with which to save after subsisting.
The fact of the matter is that many people, even those who have employer sponsored retirement plans, simply do not make enough to be able to save a lot.
I'm 32 and playing catch up. I'm saving $457/pp. into my 403b now. I have about $12,000 in there so far. I didn't make above $45,000 until I was 28, and made well under $40,000 for most of that time. If you're making at that level, there's not much left over with which to save after subsisting.
Assuming you work as a teacher, other government agency or non-profit, per your 403b?
I hate to say it, but this is also a lifestyle choice. I had two parents as teachers and purposely chose not to go that route, in part because I wanted to make more money. Terrible thing to think about as teachers help develop the future leaders of America, but that's the reality.
I live in the San Francisco Bay Area, which is the most expensive part of the country. We send our kids to a very good public school. In speaking with the teachers there, they are able to pursue their passion because they generally have a spouse bringing in good money (software developer, tech executive, etc.).
It just really doesn't concern me - there are too many data issues in terms of people having multiple accounts, couples versus single people, averages versus medians, some people have pensions who may have therefore saved less, etc. etc. I know how much I want to have saved and I'm on track - THAT'S what counts. I don't compare myself to imaginary average people who don't exist.
The fact of the matter is that many people, even those who have employer sponsored retirement plans, simply do not make enough to be able to save a lot.
Correct. The ONLY way for a middle class person to get ahead, is to live below your means -- especially with the big items - housing, cars, etc. You don't have much control over some areas - healthcare, insurance, daycare. So the items you can control -- you must! Otherwise you will work many more years than you really would want to.
The fact of the matter is that many people, even those who have employer sponsored retirement plans, simply do not make enough to be able to save a lot.
Correct. The ONLY way for a middle class person to get ahead, is to live below your means -- especially with the big items - housing, cars, etc. You don't have much control over some areas - healthcare, insurance, daycare. So the items you can control -- you must! Otherwise you will work many more years than you really would want to.
This. Two good incomes make a huge difference in what you can save.
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