Gen Z's are working now? Makes me feel so old.
The oldest Gen Z are about 25 or 26 years old.
Life is short. Gen Alpha is entering teenage years. Gen Beta starts next year, 2025, or 2026, depending on the definition.
Gen Z wants to retire early. They're off to a good start
41–50 of 94 posts
Re: Gen Z wants to retire early. They're off to a good start
#42Earlier quoted context omitted.
The needs of retirement should scale with inflation, so that means you also need $3 million today (in today's dollars) – which is rather high. $600,000 is not too far off what is the minimum recommended amount of saving to retire for 20 years on today, so it seems they simply adjusted that figure for inflation and then forgot that the income used to build up those savings also goes up with inflation.
$600,000 for 20 years is 30K per year. They'd get by on those for the next 20 years if they were to retire today?
> $600,000 for 20 years is 30K per month
I do believe that would be 30k per year.
Re: Gen Z wants to retire early. They're off to a good start
#43Earlier quoted context omitted.
The needs of retirement should scale with inflation, so that means you also need $3 million today (in today's dollars) – which is rather high. $600,000 is not too far off what is the minimum recommended amount of saving to retire for 20 years on today, so it seems they simply adjusted that figure for inflation and then forgot that the income used to build up those savings also goes up with inflation.
$600,000 for 20 years is 30K per year. They'd get by on those for the next 20 years if they were to retire today?
$30K per month, even 40 years from now based on 2% inflation, is equivalent to $13k per month today. You'd have to try really hard to not get by on that.
I assume you mean $30k per year. The recommended is more like $700,000, and that factors in your pension, but we're just using approximate figures here. Still, $30k per day today is quite doable for a retiree. What are you going to spend your money on, exactly? You've already purchased everything you need by that point in life, so you're just in maintenance mode.
Re: Gen Z wants to retire early. They're off to a good start
#44Re: Gen Z wants to retire early. They're off to a good start
#45Earlier quoted context omitted.
$600,000 for 20 years is 30K per year. They'd get by on those for the next 20 years if they were to retire today?
$30K per month, even 40 years from now based on 2% inflation, is equivalent to $13k per month today. You'd have to try really hard to not get by on that. I assume you mean $30k per year. The recommended is more like $700,000, and that factors in your pension, but we're just using approximate figures here. Still, $30k per day today is quite doable for a retiree. What are you going to spend your money on, exactly? You'…
For starters, that's the "point in life" where most medical emergencies arrive.
Re: Gen Z wants to retire early. They're off to a good start
#46Earlier quoted context omitted.
That's right. They have ~40 years left to acquire $3 million before they have 20 years left, assuming the typical human lifespan. Which, adjusted for inflation, is the same as someone who saved $600,000 over the past 40 years.
So, like, not so many people, and even less going forward? https://fortune.com/recommends/banking/57-percent-of-america...
That article is misleading clickbait. Per the US government (BLS), the median household has ~$1,000 per month left over after all ordinary expenses. That is, after car payments on their BMWs, healthcare, iPhones, etc.
The median American can afford to save considerable money but they tend to spend it on lifestyle flexes instead.
Re: Gen Z wants to retire early. They're off to a good start
#47Earlier quoted context omitted.
That's right. They have ~40 years left to acquire $3 million before they have 20 years left, assuming the typical human lifespan. Which, adjusted for inflation, is the same as someone who saved $600,000 over the past 40 years.
So, like, not so many people, and even less going forward? https://fortune.com/recommends/banking/57-percent-of-america...
I am not sure what emergency savings has to do with retirement savings. Retirement savings are often not very liquid, so they wouldn't be available to use in an emergency, typically.
And certainly some people never did manage to save $600,000 over the past 40 years, but it remains that the bar does not seem that high. Even the lowest bar will not be met by some people, but that doesn't mean the bar is high.
Re: Gen Z wants to retire early. They're off to a good start
#48Earlier quoted context omitted.
Well, there haven't been real big, bad crashes in the living memory. And anyway, this isn't what investors are worried about - they are worried about protracted bear markets.
Other than 2008, you mean?
That wasn't a big, bad crash. It was recovered very quickly.
Re: Gen Z wants to retire early. They're off to a good start
#49Earlier quoted context omitted.
$30K per month, even 40 years from now based on 2% inflation, is equivalent to $13k per month today. You'd have to try really hard to not get by on that. I assume you mean $30k per year. The recommended is more like $700,000, and that factors in your pension, but we're just using approximate figures here. Still, $30k per day today is quite doable for a retiree. What are you going to spend your money on, exactly? You'…
For starters, that's the "point in life" where most medical emergencies arrive.
That's true. As a non-American I forget that you have to worry about such things. The $3 million is in line with what I would expect will be needed in 40 years, sans healthcare costs. It is, adjusted for inflation, in line with what is recommended today where healthcare is provided to all. So, it seems it seems that figure assumes that US healthcare will be 'free' in 40 years?
Re: Gen Z wants to retire early. They're off to a good start
#50> Gen Z started saving for retirement at the median age of 19, earlier than any other generation ? Median? These numbers seem unrealistic for anyone I know who went to college, and those who didn't are in low pay jobs with no retirement plan
Also median of 19. Meaning quite good bit would have started saving before age of 18 right? That sounds off... Considering what type of jobs they would have had.
I think this is more about the mindset and knowledge, than the actual money.