Author Topic: Retirement savings surveys  (Read 6335 times)

SpendyMcSpend

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Retirement savings surveys
« on: July 27, 2014, 06:15:12 PM »
I always wonder if people are answering individually or as a couple in these retirement sabings surveys.  For example, age 25-29 and the answer is 100,000 in savings.  Ok that's not bad for an individual but it's pretty terrible for a couple. 

Joel

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Re: Retirement savings surveys
« Reply #1 on: July 27, 2014, 06:20:11 PM »
I would consider 100k at 25 very good for an individual, even 50k for someone at 25 is good. Most people are not too far removed from college at that age...

Ohio Teacher

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Re: Retirement savings surveys
« Reply #2 on: July 27, 2014, 06:26:01 PM »
100K for a household in that age range is in the 99.78 percentile nationwide, so where do you get "pretty terrible" from? 
http://www.shnugi.com/retirement-account-value-percentile-calculator/?min_age=25&max_age=29&retqliq=100000

SpendyMcSpend

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Re: Retirement savings surveys
« Reply #3 on: July 27, 2014, 07:49:45 PM »
I guess I was thinking more in the 28-29 category there.

maizeman

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Re: Retirement savings surveys
« Reply #4 on: July 27, 2014, 08:04:32 PM »
Well given median age of first marriage in the US (29 for men 27 for women) the vast the majority of people in that age bracket are single (from a legal/tax standpoint anyway). Hope that helps.

I echo previous posters, 100K by 29 (for households of either one or two earners) is doing ridiculously well relative to the overall population, if not relative to someone who discovered mustachianism prior-to or during college.

SpendyMcSpend

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Re: Retirement savings surveys
« Reply #5 on: July 27, 2014, 08:15:53 PM »
Argh it was just an example.  It could be 100,000 at age 40 or 50.  I'm just saying that the case of Americans saving is probably worse than even the surveys say because it's likely that people are mentioning the savings of an entire household rather than just their own.   Don't know why everyone is nitpicking on the random amount and age I chose.  And yes 50,000 for a person at age 29 is rather low if they want to retire at 65.

Joel

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Re: Retirement savings surveys
« Reply #6 on: July 27, 2014, 08:38:17 PM »
You have to look at the statement. It's an average for people from 25 to 29. There's a younger half and an older half. There's people above the average and people below the average. But I would expect very few at 25 to be at 50k net worth. And you have to realize a statistic like this is an average and covers a wide range of people. It doesn't mean all 29 year olds have an average of 50k just like it does not mean all 25s do as well.
« Last Edit: July 27, 2014, 08:40:24 PM by Joel »

surfhb

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Re: Retirement savings surveys
« Reply #7 on: July 27, 2014, 10:27:49 PM »
Argh it was just an example.  It could be 100,000 at age 40 or 50.  I'm just saying that the case of Americans saving is probably worse than even the surveys say because it's likely that people are mentioning the savings of an entire household rather than just their own.   Don't know why everyone is nitpicking on the random amount and age I chose.  And yes 50,000 for a person at age 29 is rather low if they want to retire at 65.

Not at all.   Someone with a net worth of 50k at 29 is doing something exceptionally right.    They will retire way before 65

Janie

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Re: Retirement savings surveys
« Reply #8 on: July 28, 2014, 01:51:08 AM »
What surveys are you talking about?

Credaholic

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Re: Retirement savings surveys
« Reply #9 on: July 28, 2014, 02:07:57 AM »
I'll actually answer your question! Personally I always answer as a couple. I'm married, so doesn't make much sense to answer individually. If I was unmarried, I would answer individually (unless I was in a domestic partnership or something).

I also always wonder if I'm supposed to be answering as a couple or individually when I apply for credit cards/limit increases (no, I'm not in credit card debt, but I do believe in using credit cards to their fullest potential, hence the user name.) I always answer as a couple unless I'm told to do otherwise - I figure it's not lying, I want my income stated as high as possible, and if they clarify later then I can always correct the amount stated.

SpendyMcSpend

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Re: Retirement savings surveys
« Reply #10 on: July 28, 2014, 04:30:04 AM »
Thank you!  To the others, I made up the range 25-29, and the amount.  I was using a made up number to ask if people answer as a couple or as single people.  I think they should specify especially bc of the divorce rate.

Cap_Scarlet

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Re: Retirement savings surveys
« Reply #11 on: July 28, 2014, 04:49:57 AM »
Two things:

1. I would always say as a couple.
2. I think you have to look at savings reletive to income and more importantly income growth ie. the most important thing (in my view) in building retirement expenses is to try and hold your expenses as income increases.  I would like to think that people in the 28-29 age range (and I know you chose this only as a random number) are still steeply climbing the earnings cuvrve.

shitzmagee

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Re: Retirement savings surveys
« Reply #12 on: July 28, 2014, 05:14:42 AM »
I also always answer as a couple. My wife is a SAHM with no true income and no savings of her own, but WE have a NW of 120K. All of my savings is for OUR retirement. If we got divorced tomorrow she would get half and I wouldn't need to save as much to reach FI. If my wife and I answered a savings survey individually I would have 120K and she would have 0, which is not an accurate portrayal.

I have several married friends that keep the finances completely separate. I don't know how they do it but they swear it works better for them. I imagine they would answer a savings survey individually.

matchewed

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Re: Retirement savings surveys
« Reply #13 on: July 28, 2014, 05:48:45 AM »
Generally you'll just have to get to the actual paper or publication for the survey. Often in things like that they go to great lengths to define how they got their number, including the methodologies and specifics such as household or not. And if they don't go to those lengths then they're not worth reading.

gobius

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Re: Retirement savings surveys
« Reply #14 on: July 28, 2014, 09:25:27 AM »
I still habitually think about it as an individual even though I got recently married (I carried in a higher NW than my wife by a decent amount). 

Dollarbill49

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Re: Retirement savings surveys
« Reply #15 on: July 28, 2014, 09:32:57 AM »
Thank you!  To the others, I made up the range 25-29, and the amount.  I was using a made up number to ask if people answer as a couple or as single people.  I think they should specify especially bc of the divorce rate.

Meadow:  If you go back to your original post, you never asked a question.  You simply made a statement about which you were wondering.

Myself, I don't respond to most surveys; to me they are a waste of my time.  I know where I am financially, and know where I want to go.  What others are doing, ON AVERAGE, is meaningless to me.
« Last Edit: July 28, 2014, 10:17:26 AM by Dollarbill49 »

SpendyMcSpend

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Re: Retirement savings surveys
« Reply #16 on: July 28, 2014, 10:58:38 AM »
That's nice dollar bill.

I will look at the methodologies.  Thank you for the tip.

Cromacster

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Re: Retirement savings surveys
« Reply #17 on: July 28, 2014, 12:13:34 PM »
Going by a formula put together by ARebelSpy:

MustachianNW=e^(0.15*(Years Working)-1)*Salary
AverageNW=e^(0.075*(Years Working)-1)*Salary


A 25 year old mustachian, making 50,000 a year (3 working years)
SingleCouple
28,40056,800

A 29 year old mustachian, making 50,000 a year (7 working years).
SingleCouple
92,900185,800

An average 25 year old, making 50,000 a year (3 working years).
SingleCouple
12,60025,200

An average 29 year old, making 50,000 a year (7 working years).
SingleCouple
34,50069,000

It gets a little skewed with the fewer number of working years,  If I can find the original thread I will add the link.

Edit: Fixed some numbers

Update with Original discussion:
Mustaschian Milestones
« Last Edit: July 28, 2014, 12:36:35 PM by Cromacster »