Personal Finance

I've been contributing to my retirement for 11 years and only have $280k - how do my peers have so much more than me?

Christy Bieber

Published: January 27, 2025 11:48 am

What if you save diligently and still feel like you are falling behind compared to your peers?

This is the situation a Reddit user is facing right now. The original poster (OP) is 33 and says he has been maxing out his 401(k) contributions for around 11 years, investing around $20,000 per year and earning a 50% employer match up to 4% of his salary. He’s invested in growth ETFs, has amassed a portfolio worth $280K, and thought that was a decent sum until he saw other Reddit users his age with over $1 million. 

Now, he’s wondering what others are doing that he isn’t, and why he seems so far behind.

Why isn’t the money growing faster?

The first big question to ask based on the OP’s post is why the money is not growing faster.

If the OP invested $20K per year for 11 years and earned a 10% average annual return, those contributions alone would put him at around $370,475.09 — and that’s not even including any employer matching contributions. If he has only $280K, then what happened to the other $90,000? 

A 10% average annual return is very reasonable for someone in their 30s who can afford to take the risk of putting most of their money into the stock market. So, why hasn’t the OP earned the returns he needs? We don’t know the answer to that, but the likely reasons for his underperformance could include:

• Investing too conservatively
• Taking on too much risk and losing money
• Paying high investment fees

All of these problems can be corrected.

The OP at age 33 should have at least 77% of his invested funds in stocks based on a rule of thumb that says to subtract your age from 110 and put that percentage of assets into equities. The money he does have invested should ideally be in low-cost ETFs that track the performance of the market as a whole, or that track the performance of specific industries or sectors such as emerging markets, or large, mid, or small-cap stocks. 

If the OP has few investment choices in his 401(k) or if he’s paying high administrative fees, then he may want to invest only enough in his 401(k) to earn his full employer match and then transition to putting more retirement money into a traditional or Roth IRA. Since these accounts still offer tax breaks but also allow you to invest in almost any asset you want, you can find affordable ETFs that present minimal risk and offer the potential to earn a reasonable ROI. 

By taking these steps, hopefully the OP can increase the amount his money is earning him so he can grow richer and stop feeling like he’s falling behind. 

Is the Redditor really that far behind?

While the OP is obviously concerned he isn’t saving enough — and should act accordingly — it’s also worth taking a look at how behind he really is.

By the time you turn 30, most experts agree you’re supposed to have the equivalent of a year’s worth of income saved. If the OP is 33 with $280K saved, this means he is actually ahead of the recommended minimum unless he’s making $280K a year or more. Further, the Vanguard How America Saves report also shows that the average balance among people ages 25 to 34 is just $37,557 while the median is $14,933. 

If the OP feels behind in terms of what his peers have, he’s likely comparing himself to those who either make a lot more money or who are extremely frugal in pursuit of financial independence. There’s nothing wrong with comparing himself to this group, especially if it helps him stay motivated, but it’s also important to keep perspective and not panic.

Ultimately, the OP should be in good shape if he keeps contributing at his current rate, especially if he can make adjustments to investments to ensure he’s earning the appropriate returns.