I already have almost $3,000 since then and these people don't even have $5K? How can that possibly be if you've worked for 20-30 years?
Something isn't right.
What you ought to do is self direct...
I know that that 6% has a stop/max too....per year.
Good luck...!!
Some people don’t tick the box to contribute.
Some keep getting divorced and having the fund raided.
Some raid it on their own and pay the penalties to cash-out to pay their debts.
My 21 yr. old son has very similar circumstances to you, except he has this as a result of his working through through high school and now college to get this.
Two things, first as I manage his account it is stunning to me that he earned about an overall return of 30%, in large measure thanks to the Trump economy.
Second, in “the old days” it was pretty rare to have 401(k) plans. Some employers had them, most didn’t. So it’s not quite fair to draw that comparison. As they are now ubiquitous — even for part-timers — and they have access to Roth accounts, there is little excuse not to have, especially when the employer is kicking in.
All my young kids have 401 (k) plans although my youngest is a stand alone plan and not through her small employer. But good for you being smart!
“How can that possibly be if you’ve worked for 20-30 years”
Fancy cars, fancy clothes, private schools, colleges, credit card debt, bad investments, poor life decisions, and health problems not covered by insurance.
There are many reasons. However, many people just spend too much. I work in an office where traders make six figure incomes. Many of them spend it all.
Kids, divorce, business failures, illness... Its not as hard as it seems... sadly.
I have had to start over twice because of things beyond my control...
I’ll be fine, but I also have a very big shovel to help dig me out compared to most...
As the saying go, men plan, God laughs.
I watched my parents struggle to provide for us kids, they are now closing in on retirement.... They are okay, but I doubt highly they had 2 nickels in retirement savings back when all 4 of us were at home.
Apparently, many people - 1 in 3 - have no IRAs or 401Ks or options for one. Seems right when numerous articles over the last year have indicated that roughly 19-20%+ do not have $1000 for an emergency fund or 65%+ do not save money or 60%+/- of Americans do not have $500 in savings or 42%+ of Americans will retire broke, etc., etc., etc.
Something is right...in what this article is indicating.....
You watch and see.
I believe it.
Many people live for the moment and don’t want to deny themselves to save for later.
Plus there’s the mentality that Medicare will pay for health care and SS will give them some income.
I think the entitlement mentality and normalacy bias contribute to those figures.
If taxes were not so high, just perhaps more people would have more money put away. Instead, the fed government has the attitude that any money you make is theirs, and they just take what they want.
Ever hear the parable of the grasshopper and the ants? As I recall, when winter came the grasshopper starved and died.
So it should always be. You plan, you work, you save and you live. Otherwise you die.
Life is tough. It is a lot tougher is you are stupid and lazy.
No real surprise in these stats. Almost a third are already wards of the state / on the permanent dole.
Aren't about 1 in 3 Americans under the age of 21?
Not everyone works where there is a defined contribution retirement plan.
Not everyone can afford to max out retirement accounts, and some people find themselves in situations where they can’t afford anything at all.
Not everyone thinks it’s very important (not everyone is particularly bright).
Some people still have pensions, and with Social Security, they’ll be okay, if not great.
A lot of folks are young, and just starting out, and are trying to form independent households, and struggling to get there. I wonder what percentage of the population cited is under 30.
Some people have a different strategy for retirement. I have a rather brilliant employee who has regularly cleaned out my employer contribution to her 401(k) account. But her parents died, leaving her with an inheritance which, when combined with Social Security, will leave her fairly comfortable.
As a result of that,as well as thanks to hard work and a fair amount of good luck I'm far from poor (as I define the word) and I'm just as far from being rich.
I'm reluctant to judge the circumstances of others.Bad luck is just as real as the good luck I've experienced.
This country's been good to and my family.My family has also been good to me,as has at least one employer.
This story surprises me....and of course each person/household has an individual story.
My wife and I are in our mid-50s and we have $1.3m in 401(K) between us but we are so concerned it won't be enough that I recently increased my contribution to the max. Speaking for myself, it wasn't terribly hard to do. Since my mid-20s, I've been contributing at least 7% of my income and getting a company match of 3% - so 10% of my income for 30 years.
I just know that I'm going to have to pay much higher taxes to help those who didn't save.
The grasshopper and the ant. The grasshoppers vote for Elizabeth Warren and she gives them the ants’ nest eggs. We ants are vastly outnumbered by the grasshoppers. I anticipated this forty years ago. I have 52k defined benefit pension and over a cool mill in my 401k. Why bother? The Democrats are going to “recapture” that money before long.
That truly is frightening. Must be they’re planning to live off the paltry Social Security payout — and that’s not even possible. Some have pensions, but pensions are ending for many so you can’t really count on that.
Generally, there are programs in place through employers that make saving for retirement pretty easy. Of course, if new toys and gadgets are a priority, that’s another story.
Many of them did not start early.
Another whole bunch of them got wrecked during the financial crisis. They got laid off and withdrew money to live on.
I could pass judgement on their cash flow management, but it won’t put any more $ in their bank.
*** “I already have almost $3,000 since then and these people don’t even have $5K? How can that possibly be if you’ve worked for 20-30 years?” ***
WTF!? You have Never Heard of DIVORCE?
Definition of Divorce is ... When a Middle aged Man is Stripped of ALL Assets and may incur a LONG TERM support payments.
EVERYTHING goes away except Bills, Payments and any hope of Retirement.
Guess what “SPORT” your Wife’s 401K is HERS and Hers alone... If you are the Husband however... it is 1/2 hers, all property/assets that are Paid For are Hers ... it does get worse or better (depending on which yo are the Husband or the Wife)
Have fun ... sport... been there done that, you have been warned
Marriage is the DUMBEST thing a Man Can Do... or the absolute BEST thing ... depends on what happens 25 years after you say “I DO”
Whatever ... ENJOY
>>And for good reason: A shocking 21 percent of Americans have nothing at all saved for the future, and another 10 percent have less than $5,000 tucked away, the study finds.<<
Yeah? Well so what?