this post was submitted on 06 Oct 2023
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Of all generational cohorts, older millennials are most likely to generate enough income to retire comfortably, according to the latest Vanguard Retirement Readiness report.

Specifically, millennials aged 37-41 have the greatest chance of landing a comfortable retirement.

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[–] worldwidewave@lemmy.world 69 points 1 year ago* (last edited 1 year ago) (42 children)

Vanguard assesses retirement readiness assuming your post-employment income should match around 68% of your annual salary.

Millennials in the 70th percentile of earners are the only demographic on track to come anywhere close to that coveted ratio. Early millennials are expected to hit 66% of their annual salary at retirement, while Gen X lags at 53% and late baby boomers at 51%.

Yay, wealthier Millennials? Way to grind that 401K

[–] RaoulDook@lemmy.world -3 points 1 year ago (6 children)

They should be investing in a Roth account instead of standard 401k if possible. Unless you're sure that income taxes will be lower when you need to take out that money. Roth investing pays the tax up front, and the rest is yours to keep even after it appreciates in value over time.

[–] ehrik@lemmy.world 3 points 1 year ago (1 children)

And if you make enough to contribute to both a RothIRA and a 401k, you should do that and not pick one over the other.

[–] Cryophilia@lemmy.world 2 points 1 year ago

Traditional IRAs and Roth 401ks are also things.

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