> The article breezes past that the median retirement saving is actually $164,000, which makes sense as the median salary is ~$60,000.

Anyone who tells you that the middle class should expect a meager retirement is an ignoramus who should be ignored at all costs.

The median household income is ~75K/year. If this household started saving (from zero!) at age 35, saved 10% per year and got a 6% return for 30 years, they would have ~$600K saved for retirement by 65.

The simple truth is almost everyone can retire in reasonable comfort and with peace of mind if they follow a few simple rules: - Avoid high-interest debt like the plague. - Get in the habit of saving 10% as early as possible - Have an emergency fund in cash, but don't keep more than ~3 months expenses in cash. Invest! - Use tax-advantaged vehicles like 401K/IRA - Invest in broad-based funds with low fees (ex: VO, VOO) - Don't pick individual company stocks. If you must, never invest more than 5% of your portfolio. If you do, know that you're not "investing", you're gambling! - Don't try to time the market. Dollar cost average. Buy and hold. - When you hit 100K, meet with a financial advisor who is a fiduciary and who charges by the hour. Not a stock salesman, not a portfolio manager, an advisor. Heed their advice. Check in every 5 years.

A McDonald’s worker who starts today aged 18 who makes $15/hr and joins the McDonald’s 401k plan and contributes 4% of their income to it and works at McDonald’s for 50 years never receiving a raise should expect to have very close to $1 million by the age of 68.

And that’s just 4%. McDonald’s has a 6% match.

Speaking as someone who's not there but can also see it (I recently learned that I'm in the "mass affluent" - those with $100K to $1M in net worth), I don't think it's "a" choice, but many of them. I've never made anything like some of the developer salaries I see bandied about on this site, but I do OK and live modestly; small house, beater car, only eat out on special occasions, etc... But I think the biggest thing is not having children. The estimates of their costs sans college is already in Lambo territory just for one. I often wonder how much that sort of thing has to do with the decline in fertility.

> median retirement saving is actually $164,000, which makes sense as the median salary is ~$60,000

That includes ALL retirements accounts - ranging from those of people who are early career to those who are at retirement age.

I haven't seen data about median retirement savings for those at retirement age.

Edit: I'm wrong!

There is a ton of poorly thought advice on this subject online. I recommend looking at some of what more reputable authors have published, such as Wade Pfau.

Even among experts there is not going to be a complete agreement on what is the best strategy, but there is broad agreement on some key points. I will briefly mention the two most important ones in my opinion.

First, realize that since investments compound, the (random) returns you get for the first few years of your retirement will have a disproportionate effect on whether you will have enough long-term. This is called the sequence of returns risk, and there are some things you can do to reduce that risk somewhat.

Second, and as a consequence of the (random) variability of the value of your investments over time, it is very beneficial to be able and willing to cut down on your expenses when your investments have lost value, particularly if it happens during those crucial first years.

Lastly, consider the possibility of purchasing an annuity. It provides you with some insurance in the event that you live longer than you expected.

It is VERY worth talking to a professional about this. It's possible to build your savings in a manner they will produce income via dividends, bonds and other methods that give you a pretty great tax advantage and you don't have to sell as many assets during retirement. This is a huge advantage overall, especially in the years the market is bad.

I am not a financial professional but rely on one to guide me.

In the context of finance, any number starting with average is meaningless more often than not. It neither characterizes the situation of most people living well below average nor of the few people living well above average.

I think the tricky part about basing it off overall net worth is that for the average retiree their house is a big part of their net worth. Many could downsize to get some cash out of it, but people do still need to live somewhere.

Gave this a try and have to say, these visualizations are super useful and for me. Opened my eyes quite a bit to a concept that seems obvious: $1k spent now isn't just $1k spent, it's $1k not invested and growing over the rest of your life.

Far too much of my own money has been squandered on living in the now, and tools like this help give me the tools to grasp what it really means to tweak the balance of spending and saving when viewed over the long run.

Thanks for this link. Super valuable! I'm not clear on how it's considering 529s (for you, or for kid[s]?). I wish the "about you" allowed you to add kids and their projected college years into the financial plan.

40k/year + SS income. So probably closer to 60k a year and most retirees have a paid off house. So, the biggest monthly expense is gone.

4% is the rule of thumb for indefinite withdrawal including correcting for inflation right? That's not necessary for a pensioner

Most of the increased average life expectancy during the 20th century came from lower mortality rates for kids. Life expectancies for the over-20 crowd hardly budged (and might even be decreasing in the US).

Money markets and CDs are paying ~5% so that would only be if you want to not draw down.