How Much The Average American SAVED Last Year By Age
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- เผยแพร่เมื่อ 27 ก.ย. 2024
- How much do you think the average person saved last year?
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I'm Gen X and I'm envious of younger generations who have easy access to financial information and advice from people like Dave Ramsey and yourself. There were no videos about how much investing early can help later in life. Most financial advice came from credit card company's commercials who made debt seem like the way to get ahead. Fortunately, I've made enough good decisions as I got older and have decent retirement savings and no debt. If I work till I'm 65 I should be a millionaire but due to my late start I won't be retiring before 60. I really hope the younger generations continue to save more and make wiser financial decisions early in life rather than waiting until later.
Good on you for getting wise. My parents have told me similar things about the availability of this kind of information. Banks and credit card companies got rich but their customers did not.
Completely agree but would like to add (at least how I remember it) I was taught to get a job with a company with a good pension over investing. Investing was touched upon but not pushed like it is today due to pensions being taken away. Another thing is when I was getting ready for college we would told to just get a student loan to pay for it. I was never suggested that our parents pay or help pay for their childs college tuition. College was much cheaper then, but still very expensive to let all of that interest compound. Lastly, it seems like today GEN X is also asked to pay to care for their elderly parents. Something I don't remember being discussed or happening for my grandparents. So from my perspective it seems like GEN X has been asked to pay for more expenses over the years and with a lot of thier children moving back or still at home many of covering those expenses as well. I'm currently 53 and just became debt free 2 weeks ago. Although I have a mild retirement started, i'm looking forward to getting wall over the $1 million by my retirement age of 67. Unfotunately I don't see myself retiring early.
I love how easily accessible financial info is these days! What a change to the world! Even since just 10 years ago. I think the more we can make this type of info available, the better off people will all be with their finances!
@@ErinTalksMoney I'd agree, empowering the masses with education is essential, just from the standpoint of combatting all the ways capitalism feeds off the ill-informed, nevermind trying to help them get ahead.
I'm also Gen X. We're the generation that hoped they would have a pension, but probably didn't get one. My dad (Silent Generation) had a full pension, lifetime healthcare, social security and some investments. My son (Gen Z) doesn't expect those, so he's a big saver/investor. Fortunately, I've always enjoyed investing more than spending, so I'm OK.
My Gen Z son is a super saver. Roth, pension, savings. He is a worker and investor. He had the benefit of watching us get out of debt and pay off our mortgage. Our girls are young millennials and aren't savers like him.
Both are hard workers but live larger without investing much.
My husband and I are Gen X. We were late bloomers in getting our finances in order but still able to retire early.
It comes down to personal choices. Everyday we all make choices that impact our finances.
I feel like females are kind of expected to spend more and indulge more. I feel like so much of social media ads are gears towards women. Idk, just my opinion. I hope your daughters are saving enough to create a bright future 😊 maybe they can learn from their brother
I'm gen z (girl) and I'm also a super saver. My twin is more spendy but with my intervention she is slowly working harder at saving, but her job has no benefits and she has to spend more on beauty since she works in that industry. My millennial sister has no saving sense and I'm honestly super concerned... she typically makes double my salary, has 2 kids and 2 dogs and owns a home plus has a double income family. No retirement savings except for minimum 401k contributions. I'm not sure if its her generation or what
@@sourdoughsavant22 But she has lots of things to buy that she has to buy too!!!!
I saved around 10k last year and will try to hit 10k-11k every year :).
Nice!!
Sweet!
Congrats ❤and it is good for your peace of mind....for me, I wish my compassion father bring me home early, then iam not worry about saving too much!🌹
We saved about 28% (around $40000) of our income last year. I am 41 so I am trying to hit it hard since I only stated saving for retirement 10 years ago. I feel I need to do as much as I can to catch up.
Good luck on hitting your goals! What a great savings rate!
💪👏👌
I think the increase in available financial education online is helping a larger pecentage of the gen Z ramp up retirement saving close to 15%.
My first reaction was “She must be asking rich kids” or “Someone is lying” ! 😅 But, you’re right! There is so much more information out there now. There was nothing when I was that age. Gen X! No internet, no cell phones, and no one to lead you in the right direction. I was making $3.25 an hour back then, and had about as much chance of running into a stockbroker as I did running into a space alien! Another thing that probably contributes to the younger gens is most of them don’t want to work! 😂 They’re willing to do anything to get out of it, even save money!
I would 💯 percent agree with that!
That, and like 80% of them live with their parents and less than half of them own cars.
But still - I'm impressed! Way to focus on the long game, kid!
Started saving for retirement when I graduated college (without any debt, BTW) at 23. Retired at 52 six+ years ago. Retirement is awesome and no one can take the past 6+ years away from me.
What have you been doing with your free time?
@@Iffy50 I volunteer with the the Red Cross. I am a board member of another non profit that assist people in disasters. I travel all over the country exploring and enjoying nature. I am a foodie too so I enjoy exploring all sorts of restaurants while I travel. I also help others with computer issues and small business owners with bookkeeping and general business financial advice. I stay busy and for sure not bored like so many said I would be when I retired at 52.
Good for you!!! Would you mind sharing a range you were able to save before retirement?
Hopefully our kids will listen to some of us who already made mistakes, by not starting early enough. As a Gen X'er about to retire at 55. My wife and I really worked hard to save later in life. Due to the mistakes of our youth! The first big step we made early was to completely get rid of CC debt, after that it was easier to save!
Great information. Last year I was 36 with a single income, stay at home wife and two young boys (new born and 5 year old) and I saved $37,580.93 (mostly Roth and brokerage accounts) and bought a brand new house in Dec 2022. This year I pulled $50,898.53 out of my accounts for a down payment on 80 wooded acres (it was too good of a deal to pass up). This year I've saved $11,300 so far and summer is when I make my big commissions so that number should shoot up quickly. I've over saved for many years which allowed me to take advantage of the land. You never know when an opportunity will come up. keep the videos coming. Yeah der eh (just had to since I know you're from MI)
Sheeesh what does your husband do that makes THAT much money, allows you to be a stay at home wife, save that much, all on a single income?!
@@brandon8531 I'm the husband. Commercial Construction Sales. For my company last year the lowest paid guy was at $130k and the highest was $260k. The company I worked for before (2 years ago) i made $140k and now i'm much higher than that. It's also living within your means. We do not have any car payments or other debt. We live in WI.
Say ya to da UP, eh? Boy do I miss Michigan, but I will be heading back for a visit soon! Living below your means allows you to take advance of those great opportunities when they come! A great savings rate really opens doors - because as your example points out, it’s not really about the money itself but what that money allows you to do - for yourself and your family!
@@ErinTalksMoney I’ve argued it for years. The UP is part of WI and not MI lol. Beautiful country up there.
Don't you try to claim my upper peninsula - that belongs to Michigan!!! 😂😂
Consider that the average car payment per household is $750 which makes car manufactures extremely happy and doesn’t help retirement accounts.
Just crazy. Also 44% of people roll negative equity at $5,500 which is insane. Those who are driving fancy cars will be wondering how anyone can afford to retire at 65.
The car debt in this country is crazy to me!
Car payments help shareholders and auto workers retirement accounts.
I just started in 2018 company match 4%,2019 10%,2020 0%,2021 12%,2022 15%,2023 20%,im retiring early at 62 in 5yrs and I should have about $80k in retirement with only a mortgage/utilities and health insurance.
I'm retired, but I can't help saving. It's just wired into me now. I like bigger numbers. So I have that working for me.
I'm not retired but I'm a heavy saver/investor.
My teen is exceptionally frugal. I give this generation lots of praise because they know how to to save. Unlike me when I was in my teens horrible with finances.
Knowledge is power 🔋
I'm a boomer, retired early and had auto invested into a matching 401K for over 30 years to average 18% saved. Also paid off a couple rental homes so with pension, SS, and rental income haven't needed my IRA yet after 5 years in retirement. We really didn't have videos' like this, I have to admit, I didn't know what to figure into my savings goals which resulted in a decent ballance. In fact I'm still putting the max in my Roth in retirement, and able to give some to charities. If I were to do it over again it would be more into Roth and less into Traditional.
well, if you are able to max your roth in retirement, that means you aren't really retired since you need earned income to be able to contribute to a Roth.
@@hanwagu9967 Right, I retired from a career of software engineering and now with rental income live on a "tree farm" where I scrape together miscellaneous "income' selling trees. You are observant however...
@@HighCountryRambler someone has to sell xmas trees.🤣
Last year I hit 30%. The goal is always “more than last year”
I am (44) with savings ~$90,000. My investments ~$200,000 and, of course, 401k. Unemployed since 2021 so I am starting to consider jumping into the job market again. Thoughts?
I keep wondering if I’m doing something wrong - everyone else has new cars, boats, fancy TVs, nicer houses. We are well above the median household income for my area - but I drive old cars, wear cheap clothes, and my house was built in 1978. I have no idea how people are affording those lifestyles with less income.
Then I check my investment accounts and I feel a little better, lol. We saved about 25% last year. I hope this pays off :)
I can 100% relate!! Seriously - I look around and EVERYONE seems to have new everything, goes out all the time …and I just wonder, how can they afford that!?!? But I just stick my head down and do my own thing. We will be the ones who don’t have to worry about retirement or simply rely on social security 😊
Look at Warren Buffett, he's still driving a old beat up pontiac and lives in the old family home in Nebraska. I live in a rural area, most of the old geezers driving old rusted trucks and warn out jeans sitting in coffee shops have enough "walking around money" to go pay cash for a new truck. Those same flashy people your admiring, will be saying the same about you- when you have retired early, while they're still working off their debt.
@@coyster67 nothing at all! In fact, my house is huge for something this old - 2500 sq ft.
My house was built in the early 1980's. My car is a 2014 model I bought new and paid off early. I buy name brand clothes at Goodwill/thrift stores. I put 35% (25%regular, 10% Roth) in retirement, pay extra on my mortgage while others are driving $50K+ vehicles and live in bigger houses. It's all about choices.
@@bartdoo5757 When it comes to money it has more to do with factors not choices.... You have more money than your basic cost require which is a income and cost thing not a choice thing.
I took my SS at 66 and still worked until 72 so that I was able to save and invest my SS and pension. Thank you for making the videos. I look forward to each one.
36 years old and @ 40% savings plus 6% employer match. Made the mistake of being in the G fund for 10 years while active... so that was unfortunate... but finally woke up to taking the wheel on my retirement once I left the service and have almost 10x my funds in the last 6 years. Hoping to be on track for a "more than enough" retirement by 50... the goal is anything over 8 mil then I'll toss the towel in on the 9-5 and start something a bit less time constrained!
I think I heard the govt is no longer defaulting to the G fund but rather lifecycle funds!
My husband and i are in our early 40s. We managed to max out our ROTH contributions last year while contributing enough to our employer plans to get the full match. We we are continuing to try to increase retirement savings but like your video said, I'm kind of shooting for a random number. I need to get more specific in what we will need to retire.
You will probably need a hundred quadrillion dollars to retire. Unfortunately the government is going to destroy the value of our currency long before you retire.
Try one of those retirement calculators! Perhaps they can help you feel like you are on track or if your plan needs some tweaking 😊
I read somewhere that a growing number of younger generations are living with parents. Could this be a factor why they save more?
Gen Z here. I've maxed my roth out two years in a row going on three this year. Other than that, I've been paying off debt. Bought a truck for 36k in february. Didnt like making the payment so I've thrown a large amount of my savings at it and a large chunk of my paychecks and now only owe 12k. After that, 10k in student loans. Then I'll start saving for a house downpayment. I can't get a conventional mortgage for 2 years since my job is commission based so I'll have a pretty sizeable downpayment by then. The access to information makes everything I do possible! Otherwise, I'd probably have a few too many kids, fast cars, and knee deep credit card debt!
I think part of the reason Gen Z saves so much is that we've been told for most of our education that social security is never something we should count on- ive been told so many times that that system will likely break before I ever get to see the other side of those fees.
Paid off my house, maxed out my 401k ($20,500) and roth ira ($6000) last year :)
Nice!!
Sad to see those numbers, although great for the youngest group. IF taming inflation proves difficult the next few years (and it's starting to look that way), then that's going to both raise everyone's magic number, PLUS point folks toward investing in money making assets to hedge against inflation, like real estate (where you can raise the rent accordingly), or even yourself (as in your health and skills), to ensure you can earn the going rate as long as necessary. Now you know why Powell keeps stressing the importance of getting inflation down to 2%...less pressure on everyone.
My wife and I have been retired for 4 years (wife) and 5.5 years (me). We were smart and have healthy 401K accounts that we're waiting until age 72 before taking withdrawals. Our recent SS COLA brought us an additional $400 a month. We're saving that $4,800/yr into our already well funded emergency account.
Good job gen z. Gen x needs to step their game up. Gen x has median income of $97k (highest of any generation) and they are getting beat out by people making about a third of them (about $33k median income for gen z).
I think you are making conclusions in a vacuum without drilling down to the reasons for the numbers. Plus, I think it is entirely too early to be applauding Millennial and Gen Z 2022 savings balances and criticizing Gen X 2022 savings balances.
Well Gen z and millennials are often living in Gen X house... living with mom & dad. Might be why they are saving more at lower earning levels.
I am 44 and I saved about 4 times more than what you showed for my age group and I do have a daughter who is currently enrolled in college. Thank you for this video. They've always informative and make me think of ways to increase my savings.
I’m glad you are a super saver - what a great example for your daughters
I am the oldest Gen-Xer at 57. I am going 10% pre-tax 401k, max out Roth IRA. I paid off my mortgage last paying in a lump sum the remaining balance does that count as savings. I am not so certain with these surveys.
Oldest Gen-Xer at 57 here as well. I'm planning to work as long as I possibly can while continuing to invest. The way things are going, I'm not taking any chances.
Great video ❤ Very helpful and informative 😊
Thanks for the video Erin!
According to the calculator, I'm on track (barely), with money to spare (and that assumes I never recoup any value through selling anything, and that I die with a paid-off home)!
I saved 35% of my income. 25% was in my 401K, 10% in my Roth 401K.
well, your $90k'ish income is nearly double that of the median individual income in the US. That also doesn't account for your living situation or other financials that enable you to save 35% of income into your 401k. But good on ya.
@@hanwagu9967 I don't have a $90Kish income. About $70K.
@@hanwagu9967 where did you come up with “$90k’ish” from this post?
@@brandon8531 @Bart Doo I said $90k'ish because I was rounding up from mid-$80k based on what was written, the $20,500 401k limit for 2022 and FITWA. I was just being generous saying $90kish, but it would come out to mid-$80k depending on state income tax or not. I made an assumption maxing out the 401k limit because it doesn't make any sense to contribute 25% to regular 401k and 10% roth 401k. @Bart Doo says about $70k, so there you have it. That just makes the 25% trad 401k and 10% roth 401k inefficient.
@@hanwagu9967 sorry for my ignorance… but what makes it inefficient?
1. In the past big house good degree/ education and luxury cars along with decent job -- these were the symbols of Status.
2. Now currently these changed in to - Financial freedom fuelled by regular and never ending streams of Passive Income - - freedom and liberty from regular job - location and master of ur own time location and freedom liberty and independence - Master and Boss of your own self ..!!
3. How to gain/ achieve this - such Current Status can’t be obtained through regular degree and jobs no matter how great and marketable -- the only way is saving and smart Investment to own regular never ending ever increasing and going Positive Cash Producing Assets - much more than your financial needs ..!!
passive income has always been around, it is basically money grows off of trees and getting paid for doing nothing. The internet generations grew up thinking they just can make passive income through vlogging/blogging since the handful of folks who struck it big did. Lots of things have been subsidizing and enabling this delusional financial freedom and FIRE b.s., but it will come to roost sooner rather than later. There aren't enough billionaires to redistribute wealth and no matter how many illegal immigrants you allow in the US, that will not drive the tax base enough to support all this passive income and FIRE nonsense. A larger tax base which would have zero effective tax rates is not a tax base.
If I understand correctly, the numbers that Erin gave us are averages. I'm wondering what the medians (50th percentile) would be - I would suspect that they would skew lower.
It seems like the medians were given but she phrased them as averages.
@@edygomez1760 Well if she is saying average it should mean average not median. In finance people can't confuse basic terms without changing their meaning(s.)
Gen-Xer here with Boomer parents. I guess I'm an extreme outlier. I was able to save about $36,000 last year (or $3,000 per month). I've been saving to bridge the gap between the money that I will need from the day I "retire" until age 59 1/2. This year, I'm saving to pay for needed home renovations (replacing wood rot along the foundation) and then a replacement for my 15 year old vehicle.
Gen-X. I save 16% but also participate in stock purchase programs from work and buy gold as an asset to leverage loans in anticipated recessions when I retire.
I work with Gen-Z people and it blows me away how financially illiterate they are, but then Americans in general tend to be financially illiterate. They do complain quite a bit about their financial situation though.
Dumb question here: does investment money count towards savings amount? I only save enough to keep my emergency fund replenished & I keep 6 months of expenses in a separate savings account. My investment portion of my income was a little over 13% last year & so far the same this year. What about dividends from stocks? I've been rolling those back in. Looks like I'm not keeping up with the national average.....just not sure.
Not a dumb question at all! Generally speaking - when talking about busting - your savings rate would include short and long term savings. However, to be perfectly honest, these study authors did not give details on what these savings figures referred to - short, long or both
With interest rates in savings accounts exceeding 5%, savings should be skyrocketing if interest counts as savings.
They only count adding principal not the growth of the savings. That's still huge a part of the outcome though.
My wife and I both max out our 401K’s with our employer matches, we’re saving close to $70000 a year for retirement.
Would this be a good budget strategy: 20% of each paycheck going towards saving/investing? Of that percentage, 10% going into a high yield saving account and the other 10% going into the S&P 500 Index Fund.
Depends on your short term & long term goals. General rule of thumb recommendations would be more towards 15% in investments and 5% short term. But perhaps you have an upcoming expense in the short term or are more conservative and a 10/10 split feels better for you
Saving 20% is great! I’m not sure about your idea of splitting it 50/50 between a high yield savings account and an S&P index fund. It depends on what you’re saving for. Most advisors would say to put most or all of it into into the savings accounts until you’ve established an “emergency fund” which could be anywhere from 3-6 months of your living expenses. Then once you have that put all of it into a diversified investment account that includes an S&P index fund. If you keep putting half of it into a savings account after you’ve established your emergency fund you won’t get enough growth for long term savings. This is assuming this savings is for retirement. If you’re also saving for a short or medium term goal, like a down payment on a house, then a high yield savings account makes more sense. Also, besides high yield savings account, check out other options like T-bills. They’re just as secure, very flexible, and sometimes give higher rates.
@@ErinTalksMoney ahh that’s true! Quite subjective based on the point in life. Thank you!
@@robertthompson5908 I’m saving this! All very very good points, especially with continuing to put too much money in a savings account when the emergency fund has been saved. I want to learn more about T Bills so I’ll watch her video on it. Are there any downsides to T-Bills?
@@traywaters1575 I’m not really aware of any downsides to T-bills. Your savings account is insured by the FDIC up $250K which is why it’s considered safe. Even if the bank collapsed you’d still get your money back. T-bills are issued by the US treasury and the only way you would lose that is if the federal government defaulted on their loans which has never happened so that’s why they’re considered safe. ( I realize I’m saying that just weeks away from a debt ceiling deadline but that’s another story. If that situation goes badly and the government actually ends up in default we’ll probably all have a lot bigger problems than this conversation.) T-bills come in a variety of terms from 4 weeks to a year. Currently four week T-bills are yielding 6 per cent annualized.
Can you clarify what the definition of saving was in the study? Is it just putting money into actual savings accounts, or does it account for buying stocks and index funds or purchasing real estate?
Hopefully not real estate because that tend to be illiquid money....
How is saving defined? If I put $5,000 in the bank but finance a new car for $40,000 does the survey consider me to have saved 5 grand?
It's pretty clear that if you watched this video in the first place your a saver. lol I personally think i save about 40K/ year for my savings account give or take. And another 15% in 401k. But thats only bc i was able to pay off the house early.
I am looking for a calculator that takes the pension into account.
Is the savings you are mentioning what does include: 401k, personal savings???
Unfortunately the study authors didn’t make that clear - they implication seems to be short and long term savings, but it was not clear. I’m sorry
it includes all savings. This is New York Life we are talking about. They aren't conducting these surveys from some altruistic reason, like financial education. Insurance companies and their insurance salesmen are the worst offenders in hiding behind the broad term financial advisor to sell people expensive annuities and insurance products. You better believe that they are interested in targeting every penny of savings people have, not just retirement savings.
Terrible title!!!! Savings and investing are NOT the same!!! You can save for retirement by investing or you can save for a car...clearly not the same thing
Which institution is providing an 8% rate of return. If shes advertising for someone please let me know........😅
No criticism of you, but median figures would be more helpful. One person saving a million dollars skews the figures quite a bit.
Retire at 62????? That's AWFUL!!!
Erin, you're a woman, and something tells me you are saving more than almost any of your subscribers. Even the men....
😂 I do enjoy saving - but let me tell you, I have an audience of very impressive savers here!
I wonder how they got this data, if there was a large enough sample size.
Gen z also benifitting from higher starting salary as compared to all previous generations.
Isn’t this a catch 22? Sure starting salaries are higher, but isn’t everything more expensive now, ie, housing, etc? I’m not a gen z’er, but I do have this argument with my parents often about wages vs prices then and now. 🤷♂️
Gen z benefiting from all the free government cash handouts combined with moving back in with parent(s) combined with auto enrollment into defined contribution retirement plans combined with parent(s) paying some portion of their bills even if they aren't among the 54% moving back in with the parent(s).
@@brandon8531 it's not higher for Gen Zers, it's higher for their Gen X parents who are paying their bills.
@@hanwagu9967 true. For example in IT companies gen x or early millenials had to work so many years to get high tc , but gen z are getting that kind of tc just after having 4-5 years of experience. Also when you save in your 20s or 30s your money multiplies rapidly as compared to late savers or mid savers.
is this savings like (i keep 5k in savings for emergencies) or is this about total money saved going into a retirement account?
Hello Eric. I al watching you from your country of origin. I much make great savings but wife buy much furniture. How makes retire soon? Many likes!
Haha 😂 - there’s so much to unpack here
24 years old with $21,000. I want 30,000k SAVED. Once that is done, I will pump a fraction of my income into blue-chip stocks and VOO for the next 20 years. I want to retire by 45. I see people in their 40's-60's grinding away paycheck to paycheck. That is a nightmare of mine.
Baby boomer, 49% last year for me. Good to hear Gen Z is saving so well
Most gen Z are still living at home so they can save more.
My kids are genz - when she says oldest one is only 11, I believe she is mistaken. I think she’s referencing gen alpha…
Heh my monthly savings are higher than all these age-groups yearly savings.. Btw I am 45 :D
Nice! 👏
It could be... because they spend more 😂
Wow! I'm absolutely floored by how little Gen X is savings... less than $4k?!?!?! I know $4k is a lot for some people, but these folks will never be able to retire if that keeps up!
Admittedly, we don't invest to a %, we do so more to a dollar amount. Our annual goal is $100k. Last year we feel short by -20%, but we took several vacations so the memories made up the remaining 😀 We're doing great this year, -50% towards our goal and fell very confident we'll get there in '23!
shouldn't be that surprising, since Gen X is currently the squeee/sandwich generation, paying bills and taking care of their parent(s) and adult children at the expense their own financial security.
Good job lady 😊
Women save less then men on average, because they spend more money.
Of course the youngest generation has the best savings rate, they have the least amount of responsibilities...
At 22 I saved around 1500$-2000$ a month I make 70k a year but with OT I can make 80k-90k
It's fascinating to see how different generations approach saving money. Gen Z deserves praise for their impressive savings rate, especially considering their lower wages. Starting to save for retirement at such a young age sets them up for long-term financial success. Millennials, on the other hand, have the highest average dollar amount saved, but it's essential to consider their financial responsibilities, such as mortgages and student loan debt. Gen X faces unique challenges with significant debt burdens, which can impact their savings rate. Baby Boomers, who are often already retired, may report lower savings amounts due to being in the decumulation phase. It's important to note the gender disparity in savings, with women reporting lower savings than men on average. How do you feel about your own savings goals and progress? Are you aiming to increase your savings this year?
It's far too early to be giving too much praise to Gen Z or millennials. We will see some seismic shifts in the next 5-10 years as gen X approaches retirement age and all the financial support they've been giving to their Gen Z and Millennial children dry up and those two generations will have to actually start paying the bills and churning the economy.
Congrats to those who started to save early for retirement
I think the gender differences for savings rate has to do with women being more marketed to and are typical the buyers while men are more minimalistic. A single guy is ok with a folding chair and a tv on the ground then a woman is.
I can see that 😊
Averages, don’t mean anything, this video is pointless
Many gen xers are also paying the bills for their kids that are 30years old because they don't want to grow up.
I'm Generation X, 1965. Thank goodness I don't have a 30 year old kid still living at home. 😢😂
If gen Xers are enabling their adult children, then it's on the gen Xers.
What about the Silent Generation? I guess many are still working and saving for retirement: Grassley, Feinstein, Sanders, McConnell, Cardin, Risch, Durbin, King, Napolitano, Norton, Rogers, Pascrell, Waters, Hoyer, Clyburn, Pelosi, Davis, Carter, Eshoo, Wilson, DeLauro, Foxx, Granger, Matsui, Schakowski, Cleaver, POTUS.
I could only go by the info in the study 😊 but you are right, many from the silent gen are likely be still working
Pelosi has more insight than anyone when it comes to investing 🙄😂
It's way too early to be applauding Gen Z or even Millennials for their 2022 savings balances. 54% of Gen Z moved back in with parents, you know those slacker low savings balance Gen Xer parents. 25% of Millennials have been living with their parents, you know those slacker low savings balance Gen Xer parents, and increasing numbers moved back with those slacker low savings balance Gen Xers in 2022 alone. By and large, Gen Z is really the generation where we saw forced retirement savings, I mean automatic enrollment into a defined contribution retirement plan. That mirrors polls/surveys/studies saying the 54% Gen Z and 26% Millennials report parents helped pay their bills. Gen Z also believes they can retire early, fueled by them being internet generation watching a handful of youtubers who retired at 35 and enabled by their bill paying Gen Xer parents. Millennials had the same retire early delusions, among other delusions, but the last study showed Millennials started to face some reality and retirement age goal has been pushed...shocking...not. Low savings, slacker Gen Xers savings are low because they are the sandwich generation, burdned by taking care of the parents that raised them as latchkey kids, while jeopardizing their own retirement to enable their entitled everything handed to them Millennial and Gen Z kids. Gen Xers came of age during the boom of consumerism, all them get rich quick infommercials, credit card boom, then parented during the height of internet boom and keepin' up with the jonses, i mean kardashians. nearly half boomers have a pension, so the savings balances are more likely skewed for them because of that.
both millennials and gen z have been backstopped by their parents, who are going into retirement with little to no retirement savings. I think the z and millennial delusions about early retirement are just that, because the US is going to be hitting a wall over the course of the next 10-20 years as Xers move into retirement (or try to), and the cost burden to support them is going to skyrocket. That bill is going to be on z and millennials, who are more focused on personal identity than anything else.
Not trying to put down any of the Gen z , because they are doing a great job, but the amount they can save will probably go down as they get older. Statistics show that most Gen z still live at home, they can still be in parents insurance, probably don't pay that much for food.
So when they want to start families or they have to pay their own insurance amongst other things they were probably not paying for they may not be able to save the same and therefore , they aren't actually going to be able to follow the same savings plan.
Like I said, it is great what they are doing, I'm just saying expenses will climb and they may not be making that much more.
Where in the world are you getting this data from? Because from what I see, 40 year olds have at least $40,000 to save. This crap is so damn confusing and Miss meeting
Thank u for finding this info. I commented a couple months ago abt saving percentages and you commented back. I like the fact that we have whole dollar amounts we can refer to as far as the amount per year we need to save.
I’m glad you found it helpful, I remember your previous comment Debbie 😊
Just came here to make my self feel better about only saved 25k for this year at 22 years old I thought I was behind
I am Gen X and had to retire early due to health issues. I have a small pension, my house is paid off and I have no debt. I had invested heavily, especially in the last 5 years is the deferred comp plan at work. In my first year of retirement, despite losses from the deferred comp account my balances increased by $29k, I also loaned out $9k that is unlikely to return. This year I decided to get a part time job but unfortunately I have not earned much through the temp agency that I signed up with. It really is important to live within your means and save for the future. If I hadn't, my health issues would have devastated us. Good Luck to everyone.
Give GOP governors their way and there will be eleven year olds in the workforce.
it's hard because as Gen Z everything is far more expensive.
Yeah I disagree
Spend your money while it has value 😊
Gen z here I made over 19,000 dollars but I blew it all lol
Love this type of information. I don’t think the average rate of return at 8% is always going to happen. Assuming 5% might be more realistic.
S&P500 made over 10% annualized when looking over the past 30-40 years. 8% returns is perfectly valid assumption
As a “Elder Millennial” born in 1982, my first goal was paying off land and home, which was Paid Off in 2020.
Since then, we buckled down on 401K, we got the cart ahead of the horse, I wish I’d put “something in” along the way, at least to get match,” but now we are at 15% with 6% Match.
We are also saving a $500 per 2 week pay period into Savings Account, which we want to start a Roth IRA, and continue investing into it until retirement.
Finally, at retirement, we’ll sale the Home and Land for a smaller footprint, and move to a Lake House with much less land, for our final years.
I guess there’s gonna be a very lucky Hospice RN, because we couldn’t have children.
I’m now 42, my wife is 37,…
I guess the only chance now is adoption.
Gen z is the worst generation
yay, gen Z for the win
Ok so, I'm confused. When the question of how much is saved per year is presented, what exactly is meant? Is it the total amount across your savings, checking, money market, IRA, pension (if available) and 401k or 403b contributions or is it a combination of accounts or is this something else? Perhaps im missing something?
Yes, us Boomers (aka old farts) are already retired, but that doesn't mean we have forgotten how to save. After all, that's what got us here in the first place. If we did it right, between social security, pension, and investments, we can live the life we want but still keep building that nest egg to deal with any big issues (e.g. long terrm care) and still leave something to our kids. Saving is important at any age!
operative word in your comment is "pension". nearly half boomers have a pension. That ain't true for subsequent generational cohorts.
@hanwagu9967 My company froze our pensions in 2008 when they switched to the "defined contribution " model where they made contributions to our 401(k) accounts. So, my pension isn't much, but every little bit helps. I actually prefer the "defined contribution" because that means I control the investments instead of some faceless fund manager. Many companies have gone to this model.
@@rab52764 yup, having some pension is better than no pension.
We saved about 13% of our income in 2022. We're also paying a little extra on our mortgage. We're looking forward to when the mortgage is paid off.
Thanks for all your videos Erin! Really makes my Friday mornings more enjoyable!
Thanks Nathan!! I hope you have a wonderful weekend!
@@ErinTalksMoney Thanks! Hope you have a wonderful weekend too!
For some reason you look like Tom Holland the spiderman and this is a video I needed that popped up on suggestion- I'm subscribing.
Thanks for sharing great Info, looks like the personal finance education is spreading to the younger generations, Payroll deductions for 401K contributions and auto draft from checking to savings are convenient tools to utilize for savings goals! (Pay Yourself First)
By ways! Chelsea says shirt makes confusion? What think this makes?
Is money put into your 401k, or an IRA considered "saving" by these statistics, or is this only cash left in a bank account as "savings" and not "retirement"?
The ultimate form of savings is Gold and Silver. Government will print the currency until it is worthless. I would be skeptical of putting all my currency in the hands of a Wall Street casino.
@@RusskiCommieBot gold and silver have not kept pace with the stock market. Gold and silver do not produce a dividend and only go up in value in hard economic times.
Its not really clear from the video. I pulled up the article she is referring to and it’s also unclear but I think money you put in retirement counts based on context clues. The only bit of info in the methodology section is that it was a national survey of 4410 people done in late December of last year. I really hope I’m wrong.
Hey William! I had the exact same thoughts - but the study wasn’t clear unfortunately. I thought it seemed to imply that this was the total of all types of savings, but again - not exactly clear
@@ErinTalksMoney I'm going to tell myself it includes retirement so I can feel very good about myself! I lean a lot more towards long-term investing than short-term!
I recommend for generation 43 to 58 years old : saving rate in the range of 40% to 50% of their take home income : I know it’s harder but keeping in mind the time factor ( lat as compared to generations for teenagers in twenties even in thirties luckily time is on their side as compared to the generation 43 to 58 : such saving rate ll compensate for the less time .. no pains no gains..!!
My wife and I are recently retired Boomers (physician and architect). We both grew up fairly deprived. For example, to buy fishing tackle I would sometimes starve myself and skip school lunch to pocket the 75 cents lunch money, and my wife only got hand me down clothes from her sisters and a bottle of Coca Cola was considered an extra special treat. Now a year after retirement (allowing for recent stock market recovery) our net worth is 15 times our highest combined working incomes. No car payments, debt, or mortgage payments. Not only that, we are both receiving government pensions that more than cover all of our expenses. I think we were prodigious savers because we grew up in a very frugal age (Jimmy Carter Stagflation). We think millennials are spoiled rotten, into immediate selfish gratification, focused on the wrong problems, and not competent enough to take over the World.
You need to assume the annual rate of inflation continues at 30% or higher for the next 10 years. The government is destroying the value of the currency faster than we can run up the downward moving escalator. Also keep in mind that all money today is debt. Saving debt will not get you anywhere.
What country do you live in with 30% inflation. Okay doomsdayer what is the solution????
@@ehderguyyashootadeerorno2313 I think he means that inflation will average 3% per year the next decade, so 30% total. In fact, I fear it will be higher, given it's compounded. When he says the government is destroying the value of the currency, he's criticizing the constant printing of money, which devalues it and causes inflation. As for the money is debt characterization, I don't go along with that. Yes, every country has debt, and every currency is tied to what that country owes, but it's all relative. However, I do agree with the implication that since money keeps getting devalued, it's better to own money making assets that are a hedge against inflation than simply trying to save a big lump sum (ie magic number), especially for those thinking of retiring young. The longer your retirement lasts, the more likely inflation will catch up to you...
22 in dental school. I know everyone has a different journey, but I’ll be in debt for quite a few years. Yes I’ll have high income, but my loans will total to be around $450k🥲
Ouch, but as you mentioned, your income will ramp up nicely once you graduate and I bet you will be able to have a great savings rate! I think I’ve mentioned this to you before in a comment - I work in the dent field, I love it 😊
@@ErinTalksMoney yes!! Your memory is impeccable and that really shows with all your vast knowledge of finance. Possibly when I open a practice in a few years, you could recommend me CPAs you know if you aren’t one yourself
I do have a CPA that tends to work with primarily doctors - BUT with that said - when you are gearing up to open your own practice, you very well may want one that you can walk into their office and sit down and chat. There are A LOT of wonderful CPAs out there (I am not one) - but if you ever want a chat more about the ones I know, send me an email erintalksmoney@gmail.com 😊
My dentist drives a Porsche. I think you'll do just fine. I love my dentist! I might not be a king, but I have two crowns 😂
@@sunnyd4734 love hearing that 😂😂 you sir are a true king 🤴