Older Millennials Trail Retirement Target by $427,000 as Median Savings Sit at $73,000
Updated
Updated · Realtor.com News · Jun 10
Older Millennials Trail Retirement Target by $427,000 as Median Savings Sit at $73,000
1 articles · Updated · Realtor.com News · Jun 10
Summary
$73,000 is the median retirement savings for older millennials in their 40s, leaving them $427,000 short of the $500,000 they think they need.
Transamerica’s report says the gap is even wider against expert guidance of about $1.6 million, after this cohort was hit by the Great Recession, inflation, higher rates and surging housing costs.
Housing is a central drag because mortgages, taxes, insurance and repairs have climbed while retirement contributions are easier to postpone than monthly bills.
Advisers say closing the gap requires attacking big expenses rather than small luxuries, including downsizing, cutting discretionary spending and redirecting housing-related savings into retirement accounts.
Homeowners who stay put are urged to use falling rates or 20% equity to refinance, recast or drop PMI, while avoiding home equity borrowing to fund everyday spending.