Personal Finance

The Average Millennial Has This Much Saved For Retirement Already - Are You Ahead or Behind?

Ian Cooper

Published: December 11, 2024 12:55 pm

The average Millennial believes they’ll need about $1.65 million to retire comfortably.

So far, on average, they’ve saved about $62,600, according to the 2024 Planning & Progress Study from Northwestern Mutual. Comparatively, on average among all generations, $88,400 has been saved. Gen Z has about $22,800 saved. Gen X has about $108,600. Boomers have about $102,300 saved.

Key Points About This Article

• The average Millennial believes they’ll need about $1.65 million to retire comfortably. So far, on average, they’ve saved about $62,600.
• Many Millennials are planning for retirement earlier than other, older generations. As noted by USA Today, a Transamerica survey found that the average Millennial started saving for retirement at 25.
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

We also have to consider that many Millennials are planning for retirement earlier than other, older generations. In fact, as noted by USA Today, a Transamerica survey found that the average Millennial started saving for retirement at 25. Meanwhile, Gen X, on average, waited until they were 30. Boomers put off saving for retirement until they were 35, on average.

And sure, some Millennials have no retirement savings at all.

Instead, they find themselves buried in debt and covering living expenses. All of which can push retirement savings to the bottom of their priority list.

Fortunately, Millennials Still Have Plenty of Time to Save

If you want to retire at some point, save, budget, and maximize retirement plans (especially with employer matches).

There are several things you can do now to catch up.

For one, you can maximize your 401(k), and if you don’t have one set up, or you work for yourself, talk to your company’s financial administrator or your advisor. If you do work for yourself, you can always set up a Solo 401(k).

If you have an employer that will match your 401(k), maximize your contributions up to the amount your employer will match. If your employer will match up to 6% of your salary, maximize that. So, if you earn $75,000 a year, and you contribute 1%, that’s $750 for retirement. If your employer matches that, you have $1,500 for retirement per year. If you contribute 6% and your employer matches that, that’s about $6,750 in retirement per year.

You can also invest in a traditional IRA, for example. While it’s best to check with your financial advisor, many times you can deduct contributions on your tax return.

In addition, according to author Ramit Sethi, if you start investing $14 a day in your 20s, you’ll be a millionaire by retirement.

“In 40 years, with a low 0.2% management fee and assuming a 7% return, you’d have just over $1,000,000.(Always look for low management fees — “expense ratios” — and you’ll be fine. Most of the index funds at Vanguard, T. Rowe Price, and Fidelity offer excellent value),” he explained on LinkedIn.com.