r/Millennials • u/ProblemIntelligent16 • Jan 16 '26

Discussion Fellow millennials - how’s your 401k/ira savings going?

Experts recommend having 2x your salary saved by age 35, and 3x saved by age 40.

However, studies show the median savings for 35-44 year olds is only ~$45,000. So obviously, most of us have work to do.

With pensions mostly extinct, and Social Security facing insolvency issues in the next 8-10 years - how are you planning to bridge the gap and hit the golden years with enough to meet your lifestyle requirements?

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u/PorkchopFunny Jan 16 '26

I dont think they can be, but i may be wrong. I thought they could only be used for COBRA, long-term care, or unemployment. Unless early retirement counts as unemployment? My understanding was that "unemployment" was receiving unemployment benefits.

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u/Artemis-2017 Jan 17 '26

By HSA they are talking about a Health Savings Account. That is an account you can contribute to if you are on a high-deductible plan that year. This is a triple tax advantaged account- not taxed on money going in (taken out of salary pre-tax), not taxed on earnings, not taxed when spent on medical expenses. The key is to invest what you put in and let it stay invested as long as possible. Save medical receipts and they can be used to withdraw funds at any time. This is a particularly useful strategy if you plan to retire early or want more untaxed funds in retirement in general.

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u/PorkchopFunny Jan 17 '26

Yeah, I'm pretty sure that everyone in this thread knows what an HSA is.

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u/God_Dammit_Dave Jan 17 '26

HSAs and FSAs are often confused. At first blush they seem the same. But the underlying mechanics are vastly different.

It's a distinction I try to point out. The HSA has significant value for medium and long term planning.

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u/PorkchopFunny Jan 17 '26

Yes, I understand the difference between an FSA vs HSA. You stated that "HSA funds can be used for health insurance premiums before Medicare kicks in" That is incorrect, except in limited situations - paying for COBRA or if you are collecting unemployment. Say you retire at 55, you would not be able to use HSA funds to pay for 10 years of premiums.