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> "I see in practice that a lot of us are putting retirement down the goal priority list, in favor of paying off student debt or buying homes," If that's the a
by kcorbitt 8y ago
> "I see in practice that a lot of us are putting retirement down the goal priority list, in favor of paying off student debt or buying homes,"
If that's the actual reason why retirement savings are low, then this sounds more like a paper crisis than a real one. If you're putting $30k a year towards paying down student loans or home equity, then – assuming nothing changes – eventually you're going to "fill" those buckets and start saving $30k a year for retirement, which over the course of a normal career should be plenty to retire.
That said, I have my doubts that millenials' low retirement savings as a group is really because they're saving in another bucket.
- mrhappyunhappy 8y agoAnd what do you suppose is the real issue?
- seangrogg 8y agoNot the parent, but I'd imagine that the real worry is less "they're just paying down loans" and more "once those loans are paid they still won't be contributing towards retirement".
- ghaff 8y agoAt 32, I would have had very little saved. I was finishing my second Master's degree about then and had worked for a few years but most savings from that first job were burned in grad school and I had gained a bit of debt in the process. I bought a house 10 years later and have generally done a decent job of saving money but, depending upon your priorities, education choices, etc., I'm not sure that not having saved money for retirement in your 20s (except perhaps to the degree that you're forsaking 401k matching, etc.) is automatically a sign of poor money management.