Overview
- Vanguard reports median defined-contribution balances of $16,255 for ages 25–34 and $39,958 for ages 35–44, underscoring widespread shortfalls.
- A modeled 30-year-old with $16,255 could reach about $1.23 million by 65 by contributing roughly $636 per month at a 7% annual return under a 13.3% combined contribution rate.
- A modeled 40-year-old with $39,958 could grow savings to about $762,329 by 65 with contributions near $719 per month at a 7% return over 25 years.
- Investopedia emphasizes the outsized effect of time in the market, with consistent contributions and employer matching driving much of the long-run difference.
- Yahoo Finance’s roundup of a Reddit thread captures mixed outcomes and anxiety, citing obstacles like debt, caregiving, and uneven employment, while stronger employer matches, union roles, or pensions were credited for better progress.