Even High-Income Millennials Fear They’ll Need to Work Forever
BC-Even-High-Income-Millennials-Fear-They’ll-Need-to-Work-Forever , Alex Tanzi
(Bloomberg) – Half of high-income millennials ages 30 to 34 fear they’ll have to work forever because they won’t be able to save enough to retire.
That’s one take-away from a recent study that focused on high-income millennials, those with a minimum annual income of $100,000 for single people or $150,000 for married or partnered millennials.
The survey was conducted by the Spectrem Group, a wealth advisory company, and offers insight for the demographic that came of age during America’s worst economic crisis since the Great Depression.
In particular, millennials that are now 30-34 years old – meaning that they likely graduated from college in the depths of the downturn, when hiring in many industries had dried up – are the most cognizant of or concerned about finances.
That “middle” cohort, scarred by memories of a dismal employment market, are also far more willing to work at a job that they might not like than their younger or older peers.
High-income millennials under 29, who graduated from college when the U.S. economy had started to recover, are more optimistic, the survey found: they’re more willing to hold out for a job they enjoy, and less worried about having to work forever.
Older high-income millennials are more concerned about having a job that pays well than a job that is fulfilling.
More than a third of millennials say firms that offered student loan payoff assistance influenced their career decision.
One quarter are concerned that retirement will be forced upon them or their spouse before they’re ready.
To contact the reporter on this story: Alex Tanzi in Washington at firstname.lastname@example.org
Somehow I don’t think that this sentiment has to be correlated with income, at least within normal parameters, since people earn more or less depending on where they live and are surrounded by people with comparable lifestyles.
$90k denver is the same as $100k nyc, amirite6? was in another thread so it has to be true
i think with 100k. you should be able to save at least 25k per year, at a 10 percent return. you should have a million in 17 years.
Nerdy what is with these trash returns? In your wiser state are you allocating to munis or is the IRR threshold now lower since dollars aren’t competing with models and bottles?
According to my calculations, a person who makes $100k per year only brings home $77k after payroll taxes and income taxes. If you save $25,000 per year, you’re down to $52k, or $4300 per month. (assuming you’re single with no kids)
I don’t know where you guys live, but $4300 doesn’t buy too much where I live. Certainly not if you have any luxuries in your lifestyle.
4.3k should be more than enough for an good lifestyle. that’s literally my budget. (with a benz its around 5k, but if you have a basic ass ford fiesta, this is it)
so in los angeles. if you have 100k income as a single dude. you can prolly shelter 25k with 401k, ira, or hsa.
your pretax income will then be 78k.after tax of 54k. with insurance and other stuff. you’d prolly have 50k.
lets do worst case u’d have 4200
housing at 1500. (with utiltiies, as rent)
car at 700. (including insurance, repair, gas)
food at 500 (300 grocieries, 200 dine out).
cellphone, internet, netflix at 200.
on clubbing worst case i’d spend 80 bucks a month on covers. id pregame at home maybe 20 bucks a month.
i didnt factor medical. since your hsa can cover that cost assuming you have hd plan.
anyways thats 1.2k you can do for miscellaneous shit.
I live pretty frugally. At 100k I’d be able to save about 35k a year. Depends on how much international travel I do though. But Texas is cheap