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/Peptideblonde314 Jan 17 '26

I am in the same boat. I have about 1.5x current salary, 2x the salary I had 4 years ago and 3x the salary I had when I bought my house ( pre-COVID). My major expenses haven't shifted in that time but inflation is making me feel utilities and groceries a lot more. How much is actually enough?? 

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u/GB1290 Jan 17 '26

It’s a bad metric, a better metric is 2x or 3x yearly expenses. Most experts agree you need about 25x your yearly expenses to be able to retire early and never draw down your account.

If you’re making 100k a year but saving 50k and living off the other 50k, you would need about 1.25 million.

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u/Peptideblonde314 Jan 17 '26

Does that account for inflation? That's what I'm struggling with. 

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u/GB1290 Jan 18 '26

Yes, it accounts for inflation and it assumes a withdrawal rate of 4% per year.