Of all generational cohorts, older millennials are most likely to generate enough income to retire comfortably, according to the latest Vanguard Retirement Readiness report.

Specifically, millennials aged 37-41 have the greatest chance of landing a comfortable retirement.

  • stolid_agnostic@lemmy.ml
    link
    fedilink
    English
    arrow-up
    43
    arrow-down
    1
    ·
    1 year ago

    That was my take away. If you earn a lot of money you can fund a good retirement.

    The only other real argument I found was that millennials in general may be better off because they entered the workplace when these retirement plans activate automatically whereas boomers and gen x had to actively sign up for them.

      • edric@lemm.ee
        link
        fedilink
        English
        arrow-up
        16
        ·
        1 year ago

        I think what they meant was 401k enrollment is now included in new employee onboarding by default in most places now.

          • Puzzle_Sluts_4Ever@lemmy.world
            link
            fedilink
            English
            arrow-up
            7
            arrow-down
            1
            ·
            1 year ago

            Its going to depend on your field. “Tech” very much prioritizes “total compensation” with a focus on contribution matching and the like. And then affiliated fields do because people tend to branch out/lose their god damned minds.

            • bluGill@kbin.social
              link
              fedilink
              arrow-up
              4
              arrow-down
              1
              ·
              1 year ago

              Any medium or larger company will give everyone a 401k because it is good for the executives and 401k rules require you offer them to everyone not just the high wage earners (there are exceptions to this rule). Plus investment companies make is relatively easy to offer this type of thing to everyone.

            • agitatedpotato@lemmy.dbzer0.com
              link
              fedilink
              English
              arrow-up
              3
              ·
              edit-2
              1 year ago

              I work in Human Care like about 25% of millennials, I don’t know many people whos orgs offered retirement to them, a lot make their employees purchase insurance through the ACA, ive seen ‘How to apply for ACA’ in onboarding handbooks and handouts, but retirement is rarer.

              • Puzzle_Sluts_4Ever@lemmy.world
                link
                fedilink
                English
                arrow-up
                4
                ·
                edit-2
                1 year ago

                Yeah. There is always the issue of people not being able to understand that others have different life experiences than them. But, because anyone whoi expects to live past 60 have started to think about retirement, we also get the dunning kruger effect.

                Similarly, I am not aware of any service industry jobs that really prioritize 401ks. And it seems like a crapshoot for teachers and education adjacent jobs whether they get pushed for a 401k or a pension fund that will likely get blown on hookers and blow long before they reach retirement age.

                I do think that, in general, people need to educate themselves and at least have an IRA they put money into around tax season every year. But I get that even being able to do that is already incredibly privileged.

                • AA5B@lemmy.world
                  link
                  fedilink
                  English
                  arrow-up
                  1
                  ·
                  1 year ago

                  IRS defines 403B plans, which are similar to 401k, but specific to teaching. Also public school teachers have retirement plans through unions (at least in NY, MA, CA)

                  • AA5B@lemmy.world
                    link
                    fedilink
                    English
                    arrow-up
                    1
                    ·
                    1 year ago

                    This is one way 401k and similar plans are better than pensions: you own the money, immediately

                    While pensions were historically a lot higher value, there have been too many ways to lose it. Not spend ten years at the company? Gone. Company goes bankrupt? Gone. Company not funding their commitment? Gone.

                    With a 401k, I own the money immediately, can take it with me no matter how short term an employee I am, keep it even if the company is bankrupt, and most importantly, I decide how to invest it (that could be bad but it’s still my choice)

      • BarrelAgedBoredom@lemm.ee
        link
        fedilink
        English
        arrow-up
        10
        arrow-down
        1
        ·
        1 year ago

        My employers 401k plan was automatic. Let it sit for 3 years and came on hard times around 2021. I actually lost ~15% of the money I put in. Cashed it out, opted out of automatic contributions and haven’t looked back. I don’t need some investment firm to lose my money for me, I’m already good at that on my own lol

        • AA5B@lemmy.world
          link
          fedilink
          English
          arrow-up
          4
          arrow-down
          1
          ·
          1 year ago

          Please revisit. That’s usually a bad idea. Yes, aggressive investments can lose money in short terms like one year or less - actually there was a long term piece of advice to not invest in stocks any money you need for the next five years. However prudent investments, like an SP500 index fund , have always increased in value in like ten year periods, and over some similar period have always beaten inflation

          There’s a lot to learn about investments, but

          • it’s your only realistic path to fund retirement
          • the magic of compounding is your best friend
          • 401k contributions and returns are tax deferred until retirement
          • many 401ks have additional corporate contributions - free money

          401k’s can be VERY useful to most of us over the long term, so you should reconsider whether it’s good for your situation too

          • BarrelAgedBoredom@lemm.ee
            link
            fedilink
            English
            arrow-up
            3
            ·
            1 year ago

            If I had the funds to invest, I would probably have a Roth IRA or something simple but the hard times never let up. I work 60 hour weeks and still live paycheck to paycheck. I’ve only earned enough in the last couple of months for me to get health insurance again. I can’t afford to give even 3% of my paycheck away (the minimum for my company to begin matching) at the moment and that’s not likely to change in the next year or two.

            I really do appreciate the concern and if I were in a different place, I’d reconsider. I was being a bit bitter and sarcastic in my comment but I’m in no.position to save any money

        • afraid_of_zombies@lemmy.world
          link
          fedilink
          English
          arrow-up
          3
          arrow-down
          1
          ·
          1 year ago

          You don’t trust the pieces of shit my taxdollars bailed out in 2009? Why don’t you trust those peices of fucking shit?

          • BarrelAgedBoredom@lemm.ee
            link
            fedilink
            English
            arrow-up
            2
            ·
            1 year ago

            I needed what little was in that account because my car shit the bed on me and the repairs were more than the car was worth. Had to take that and my stimulus check to buy another beater. I’m still paycheck to paycheck and couldn’t afford to start my savings back up if I wanted to

      • stolid_agnostic@lemmy.ml
        link
        fedilink
        English
        arrow-up
        2
        arrow-down
        1
        ·
        edit-2
        1 year ago

        Actually it’s required if you’re over the age of 30. Below that age, you can delay it. Once you hit 50, the percentage input increases significantly. I work as a state employee so it’s different than in private sector.

        I think that even corporations are just enrolling people though too.

    • bluGill@kbin.social
      link
      fedilink
      arrow-up
      3
      arrow-down
      8
      ·
      1 year ago

      It has always been that way. More millennials than any previous generation are able to fund a good retirement is a large take away.

      Many still are not funding a [good] retirement, but overall Millennials are better than their predecessors.