Buzz
Are you putting enough aside for your retirement? It can be difficult to assess, but comparing your savings to others in your age group can give you a clearer picture.
As explained by Investopedia:
A June 2018 study from the Transamerica Center for Retirement Studies surveyed 6,372 workers across the country, ages 18 and older, to analyze their retirement savings by generation. It found that Baby Boomer households had a median retirement savings of $164,000 in 2017, while Generation X had $72,000, and Millennials had $37,000.
As an 'Old Millennial' (born in 1981), I currently have $90,960.73 across various retirement accounts—though $3,445.87 of that is in a health savings account, which could be used for retirement if I don't spend it on healthcare first.
According to the Transamerica study, my retirement savings may be above average for my generation due to two factors: my annual income exceeding $50,000 and my graduate degree. (The study suggests that more education correlates with higher retirement savings, or so it claims.)
I believe my retirement savings are higher than average because both my undergraduate and graduate degrees were fully funded, I have no children, I live in a low-cost area, and I’ve spent the last five years writing about personal finance.
In short: I’ve had some financial advantages that many other millennials haven’t had.
But enough about me. What about you? Do your retirement savings align with the average? If they’re above or below what others in your generation are saving, what factors might have contributed to your ability to contribute to your retirement fund?
