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Most Americans don't have several months of savings regardless of age. I agree that it's a bad sign, but it has a lot more to do with the current economic clima
by robotastronaut 10y ago
Most Americans don't have several months of savings regardless of age. I agree that it's a bad sign, but it has a lot more to do with the current economic climate than individual behavior.
- Retric 10y agoFor people who earn between $80-$100,000 a year the median 401k account at retirement is ~$255,000 http://www.financialsamurai.com/median401k-retirement-balance-by-age-is-dangerously-low/ http://www.financialsamurai.com/median401k-retirement-balanc... (Note median is lower than average but means 50% of people have more) So, having a few months savings is common close to retirement age for people who make above average wages. Scale that back to mid 30's and a few months savings is still common.
- kevinr 10y agoA 401k is not a savings account. It's a retirement account. You're not supposed to pull from it between jobs, and there are serious financial penalties for withdrawing before you're past retirement age. A 401k is also supposed to be able to provide you with an income resembling your at-retirement income for at least 10 years, which is obviously impossible if you only have 2.5x your at-retirement salary in it.