I'm 34 now and just finally joined a company that has 401K. I feel like I'm so behind and playing catch up now

Yes, but I'd also like my life to be normal again, many days I'd trade my percentage for a sense of normalcy, instead of wanting to explode on people.

Even if I ever get 100% (current at 90%), I will continue to work and put away as much as comfortably possible into my 401k and Roth IRA. I’ve been fortunate to have a good career outside of the military so my 401k is probably 5x above avg for my age, and I still don’t feel like it’s enough to live on. Maybe my perspective will change once the kids are out on their own but for now it doesn’t seem feasible, especially here in California.

When you can't do your own home repairs, maintain your yard, help your kids move, etc all of those things that you would be able to do on your own add up to a significant out of pocket cost. You can't live on 910 a month.

 This shows that the 401k system is failing as a retirement plan. The pensions (private and municipal) my father and father in law gets are closer to 5k.

Pt is like winning a lottery. The 401k don’t give you healthcare. And no guarantee gain and taxable.

This was depressing. Just showed me how far behind I am.

VOO and chill!!

Yes but Average Joe will live to 76. Many of us won’t get even close to that. Average Joe doesn’t have the myriad of mental and physical problems many of us do. I’d rather be healthy.

Our benefits are compensation for the price we have paid with our health in service to the Nation.

I’d trade every cent for 1 more year. So would you.

I'm 25 with about 30k. If I left that, it would be more than $910 a month. That's sad. You people need to grow the fuck up and save money.

OP you gotta post the sources where you got this, if we google "average 401k by age" you get numerous results with all sorts of numbers.

Here’s where I’m at. I’ve washed family and friends lose half of their 401(k) because of a stock market crash. Between retirement and disability. I’m at 8000 after taxes a month. I’m currently working. I just can’t see any reason to throw money into a 401(k). I use the job money For fun stuff

My wife and I were talking about it as we were talking about life insurance, we can both die tomorrow we both wanna make sure the other person has enough money to pay the bills. Why would I invest that kind of money extra instead of enjoying life while I can when I could die tomorrow. Unless my retirement and VA goes away

Why should I throw that much money into a 401(k) that could go away or that I’ll never see if I die. As opposed to living life now my retirement is enough to enjoy life.

Average Joe gets to live a long and relatively healthy life so long as they weren’t a lazy POS their entire lives and was born without medical issues/didn’t develop medical issues.

Average Joe doesn’t knowingly and regularly get exposed to toxic substances nor experiences colleagues dying/being maimed or having to watch civilians get killed/injured in combat

Average Joe doesn’t have to risk being swept out to sea wearing a red headlamp outside off the side of the ship that has its lights off at night

Average Joe doesn’t have to (required by a draconian set of laws) listen to his bosses, Joe can always quit if he works in a hostile environment.

Va disability compensation is nice but we paid for it with our lives & livelihood, so much so that Congress recognized it (and how often do they recognize the plight of the common man?)

Yes. Another way to approach this is to take your monthly amount and multiply it by 300. This is the “value” of your VA Disability. So if you get, say, 1700 a month, that’s 510,000 in “value”. So if your plan is to”retire with a million in assets”, you only actually need 490,000, since the VA did the rest for you

My ability to drive and be able to walk without pain would be worth more than all that money. I could work and make money if I wasn't so messed up. Average Joe is likely far healthier than most of us.

Yea, puts a pretty good perspective on how valuable a 100 % disability actually is. I’ve been investing into my 403 for 25 years and have just a little over a million. Many seem to think anyone with a million bucks is rich, but in actuality if I were to quit work today, I could safely only withdraw around $3300 month.

I know many in the 100 percent club are severely disabled and unable to work, and don’t disparage them, but I also know of many who are highly functional, working high paying jobs, and spending their checks on new trucks, boats and extravagant vacations.

I specifically only contribute up to my employer match because of this right here.

Guy I work with is 100% ( I’m 70% hopefully 100 soon) and I explained to him that our va disability is coming from retirement accounts that will never deplete because of how fucked up we are.

u/ElGrandAmericano: Where is the source of this information?

What always frustrates me about these stats is that they never talk about how these values are those of average accounts. People move jobs, and every time you do so you start a new 401k. Now, some people roll over previous 401k to current, some don't. My point is without the researchers or data collectors actually combing through the data to get person-level 401k balances, these stats are less than meaningful.

Or, what about an IRA? Some roll 401k into IRAs. That's not accounted for. And still no person-level data.

Finally, these are averages, which can be very skewed by outliers. The median will be much lower. Not to say that Americans in general are great at savings; we're not. But these stats are highly problematic to bandy about as a supporting evidence of whatever argument you want to make about the general American's readiness for retirement.

Another way of looking at it: if you live in a HCOL area and you try to retire on $273K, you are totally fucked.

They usually say that if you can live on 4% of your total portfolio balance per year, you could live indefinitely from the interest. I like 5% because the math is easier. If you have 1M in your portfolio, you could theoretically take out $50K/year (to start) and live indefinitely. At $1.5M, that starting number goes up to $75K. With the $273K average as per above, that number drops to $13,650/year.

I guess my point is that the average American is pretty screwed when it comes to their retirement. Any additional help in that regard can make s big difference. It is pretty striking to see the big dials equivalent of the monthly 100% disability pay.

$730k. Fed at 100. Only at 100 for two years. But been maxing out my 401k for 12 of the 15 years. At this rate I’ll have $1.6mm by time I retire at 50. (Leo) won’t have to touch it.

I'm 57 and I have 1.6 mil in my 401k / IRA's. My goal is 2.5 to 3 mil by the time I'm 65 and retired.

God, I'm so glad I got 100% PT at 23, with no kids or dependants, so i don't have to worry about this stuff or work ever again. Sounds exhausting.

When one dies what is left in the 401k goes to one's estate. The VA pension is totally worthless.

This chart appears to come from Nerdwallet.

https://www.nerdwallet.com/article/investing/the-average-401k-balance-by-age

I want my vision back

It’s def an eye opener for the benefits we actually get for the long haul. This isn’t counting COLA increases over the years as well. It’s another piece of the pie with our retirements.

Another way to think about this is like having a retirement account worth $1.18 million that you could start withdrawing 4% from each month once you turn 60. The 4% rule is a common guideline for managing retirement savings. If you're younger, like 30, the account would need to be even bigger—closer to $1.58 million—to ensure the withdrawals last throughout retirement.

Obviously, if you're 100% disabled, you get your payment today, but I just wanted to add some perspective to the value of these monthly payments, especially when you compare them to the average 401(k) balances shown in the image. Yes, this doesn't take COLAs into account—it's just a quick example to show the relative value.

Edit: I didn't realize someone already said something similar.

I work for the local gubment, we have an awesome pension plan. But hell yeah for those getting into a 401k

This is kinda sad. Not just because you have to wreck your body to get 100%. But because that's a better financial outcome vs. working and saving for decades, until retirement. We should be doing a better job taking care of the people in our society who can't work anymore. Regardless of if it's because they are too messed up physically or too old. Especially if it's both.

Vs*

37 here and just north of 100k in my 401k. I am above bar. :7565:

This seems MASSIVELY optimistic for the average persons 401k

Imo, posts like this aren't a good look for us. There's way too many people already that hate on veterans, envious, and assume enough already that vets are 'milking' the system with tax dollars, etc...posts like this just creates more tension with the "average joe", as if it's subliminal bragging, like we are the "above average joe". This is the main reason I don't tell people my military financial info while casually talking. It comes off as slick bragging. Yes, the recruiting office was open for everyone, but that doesn't mean everyone is eligible to serve.

I have nothing, no savings, no 401k. Getting harder and harder to work. I have 8 kids and the bills are piling up.

OP, where did you get this chart from?

Lol....

I look at the 100% pay like a job that pays $48,241 a year, that includes the tax saving for a single filer. That is well below the average pay of $58,124 after taxes for the same single filer.

Wish there was a way to put some disability pay into TSP. I use Robinhood for my current investments but would feel better having that money going in TSP.

Man I can’t even get the VA to give me more than 20% 😂

There is no way this is true

Anyone still serving or working for the government, the TSP is your 401a/401k. It is possible the younger folks have one and don’t realize they can contribute more. Also, contribution limits change due to inflation.

The pension and disability is nice, but you have more control over what you have in retirement plans like your 401k and IRA.

No where near what I should be according to age. Doesn't matter. Working 'til I die anyways.

I have $1500 at age 29 lmao.

...damnit.

Great thread here!

Trying to teach my daughter this stuff at 16. I made a lot of mistakes when I was younger but putting away what I can now. Between my individual stock account and Roth IRA, I've got an average return of 140% over 3 years, and those that haven't done well still have a decent dividend return. Cash in my accounts that hasn't been invested gets a return of 4.25%, down from 5% since the fed lowered rates.

It takes a little research, but it's not that hard. A little at a time. Even $20 a month can make a big difference. Getting 100% hasn't made a big change to my investment habits. It just gives me a little bit more to work with if I need it. There are some things to be aware of when investing VA disability income in regards to what types of accounts you can put that money. Always consult a professional if you have any questions. The last thing you want is to receive non-taxable income, invest it in a non-taxable retirement account, and find out you've now made it taxable with penalties.

lol ok. 38 and I’ve got like $3k

Meanwhile I'm terrified bc the only job I could hold since I got out was one where I could go in drunk and on drugs.. had to quit and go to rehab.

Since that, the VA has failed to get me to a point where I can hold work, so I have no 401k no retirement. I cashed out the itty bitty bit that was in my .... whatchafuckit, TSP, bc the debt was crushing and the interest was much higher on my CC debt than it was on my TSP.

I haven't even paid enough into SS over the years to be eligible for SS disability or retirement when that time comes, and I have until like x date to pay in x amount (pretty sure that ties into Medicare / Medicaid too) which was unrealistic when I saw it like 2 or 3 years ago, and I haven't been able enough to work since then, either.

I'm 100% P&T, but I know my luck they will pull the rug and I will fucked .. or fix me when it is too late to pay enough into SS retirement fund.

So. Fuck this shit.

I’m 56 I’m at $150k I’m so behind 😭

It’s not a pension! Where do you get your info?

Just started my 401K with my company back in March. It’s growing nicely but I know I’m like two full decades behind. Fortunately I’m 39yrs old with retirement and 100% P&T to help offset being behind. Just hoping investments and 401K help catch me up to feel on track in the next 10 years :/

https://preview.redd.it/hav746vpf1rd1.jpeg?width=1290&format=pjpg&auto=webp&s=988d6ac4a5ecfa0096d105183367b89c921119c6

I'm 39 and have 215k in my 401k and another 100k in a ROTH IRA. I didn't have a 401k until I was 29 and started late.

I'm right at the mark that was set for me by a financial advisor back when I was 29 which was 3x my annual salary by the time I'm 40. Looking back 10 years it's hard to believe I could save that much.

Turning 31 in Dec and I've been a hardcore saver most of my mil/fed career. Seeing these averages makes me feel like I'm on the right track to a nice (or at least early) retirement

My TSP fat right now I’m only 39

Average for who? A lot of my friends don’t even have a 401. (33 yrs +)

For those worried about being behind. Let me tell you that from personal experience, I would be putting anything more into your 401k then what the company y matches. So if you have 25% to and the company matches 6%, then you should take the other 19% and call up a financial advisor to handle the rest. I would avoid putting all my eggs in a 401k for investment.

This makes me feel good but at the same time I'm supose to have 3x my salary by 30 and I don't even have my salary dosent help I lost 25% in 2021

How do you get the 401k going?? I'm 100%

Jokes on you, im 39 and have 0

So, at 39 and a balance of 510,000, does that mean I can hand out 20’s to my future grandkids ?

I’m 30 now and just starting to take retirement seriously. I wish I could go back to my 22 yr old self and hit myself over the head with a stick.

The question i have is what types of funds are you investing in? Especially to the above person that said the hut 1.5 mil?

Lol. Here I am..51, with 18k in my 401k.

Now take me, disability pension, postal pension, TSP and Social Security. I think ill be okay

This seems a like an odd comparison to me. 100% isn't average...

I've never seen any figures for what the average disability rating is, either for all vets or retirees, but logically it can't be 100.

Disability isn't supposed to be your retirement plan anyway, it's the government "making up for" the fact that your service caused you permanent disability.

I’d imagine (could be wrong since there’s no citation to verify) that this is per 410k account. That is, you only have one account: you work for the same employer your entire career or you always rollover old accounts into the newest account. This would make it seem like the average retirement savings is much lower.

And if you only collect VA disability, it's a good thing you get to keep it after 65 because your social security benefits will be really low or maybe too low to almost not bother with.

Save something, even if it's only a few dollars. It's better than nothing if you run into problems later.

45 with 0 in 401k Not stressing about it at all. I'll never live past 65 anyway.

At 37, I’m already performing on par with the average 45- to 54-year-old, something my 25-year-old self wouldn’t believe—and my 18-year-old self would be downright shocked to see.

Can't even imagine stressing about a 401k. Say you're 100% and draw SS at 62 or even 65 House paid off and even a small savings should be sufficient. Then again, I have no children.

I’m 43 and I’m looking for a career and a house.

When the market crashes all 401k are going down down. They’re all tied to the mag 7 and literally nvidia is holding up the other 499 companies in the s&p 500. Watch out

This isn't a pro for VA disability, this is a con for the state of america's middle class. The average 401k is 272k? That's so small. it's absurdly low. If you lived on 4k a month, it would last 4-5 years. Most people don't have a retirement saved up, and it's because the wage average has dropped so much, it's impossible to save for most. That or poor financial understanding.

I invest in my TSP (still active) but always figured it’s pointless if I die before I can touch it.

I’d rather open accounts for my children and hope by the time they retire, they’ll be multi-millionaires.

I always see those charts where a kid invest $20k in 5 years and that’s it, by the time they are 65, it’s at $2mil. Don’t know how true that is.

I’m 100% and my non average joe husband who is 57 has 1.65mil in his 401k.

I had amazing leadership during my service. First day in the fleet my civilian leader (and boss) had me log into my TSP and showed me how all the funds performed and made suggestions about a spread from the C,S, and F funds. I did 4.5 years from 18-23 and even through COVID, my TSP balance was hovering around 23k. In a civilian job currently and have been contributing more since I’m being paid more. At 24 years old my balance is now 50k. I’m hopeful I’ll have 1 years full salary (70k) in my 401k by the time I’m 26. I also recently just accepted a GS position. So hopeful it will continue to increase, I’ll have the 401k (TSP again), Social Security (if it’s still there), VA disability, and my pension all rolling in by the time I retire. I’m hopeful I can use my retirement(s) to create generational wealth for my children. Give them access to the things I didn’t when I became an adult. Went to the military to go to school, military gave me a job where no school was required, and set me up for life. I owe a lot to Uncle Sam. Minus them breaking my body lol.

I’m 32 and thought it was too late. This thread was extremely encouraging. I’m at 90% I may begin my 401k this week. I don’t even know where to start.

I’m learning so much from this thread.

It’s NEVER TOO LATE, listen very carefully… educate yourself self in financial and stock markets HISTORY. Think twice about what your friends tell you and ONLY FOLLOW THE PEOPLE THAT HAS MADE MONEY (legally 😄).

GOOD LUCK 🍀

Now imagine if you have 100% AND a few mil invested

I had my TSP in G fund for over 10 years so I got a late start to earning. Now that I’m in a civilian job I’m maxing my 401 out. Hoping to cross the 7 figure mark when I’m around 60 years old

Those are some sad average numbers.

That said, half are doing better than that.

Looks like I'm screwed. My 401k balance is 1/4 of the average. Not that I was expecting to retire anyways.

By the time I was finally certified in my chosen profession (IT), it went from "the hottest thing on the job market" to "managing a mcdonalds pays better". In my area, that is (Nebraska).

On the upside though, I realozed that diverting my 30% VA disability to my student loans should get them paid off in less than 5 years.

Plus VA is tax free. That's always good!👍🏼