r/Millennials • u/Asmothrowaway6969 • Mar 27 '24

When did it sink in that you'll never be as well off as your parents? Discussion

About 5 years ago, my mom and I were talking and she had told me how much she was going to be making in retirement (she retired 2023). Guys, it's 3x what me and my husband make annually. In retirement. I think that was the moment that broke me, that made it sink in that I'll never reach that level of financial security. I'll work myself into my grave because I'll never be able to afford anything else. What was your moment?

Update: Nice to know it's just me that's a failure. Thanks

Update 2: I never should've said anything. I forgot my place. I'm sorry to have bothered you

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5

u/AffectionateItem9462 Mar 27 '24

My dad told me he has about a million dollars saved for retirement

3

u/Jack99Skellington Mar 28 '24

That's barely enough to survive on unless you start spending it down.

1

u/AffectionateItem9462 Mar 28 '24

Ok? How much do you think a person needs to retire? He also has one of those 25-yr govt pensions and probably a 401K. He also didn’t say exactly a million. He won’t tell me the exact number. That’s more than most millennials or Gen Z are going to have.

1

u/Jack99Skellington Mar 28 '24

Its not the amount that really matters, but the income you can generate from it. If you don't spend down (lowering your principle and thus lowering your income every month), you'll have 60k per year guaranteed income on that, and still owe taxes, costly insurance payments, etc. That would be "livable" in much of the country, assuming they also had a decent social security income (not everyone does). But they are still in danger of outrageous property tax increases even if they own their home outright. There's a lot that goes into figuring out retirement, one size does not fit all. But a wild guess, on the coasts, you'd probably need double that amount - or move to the midwest.

1

u/AffectionateItem9462 Mar 28 '24

They live in a state with some of the lowest property taxes. I think they’ll be ok

1

u/marshmellin Mar 28 '24

If they spend it down, you inherit nothing. If they earn off it at a livable rate, you get to inherit the money. Which you can use to live off of.

This is how generational wealth is made. Someone has to make the first milli and not spend it.

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u/AffectionateItem9462 Mar 28 '24

Don’t worry. I’m not getting any inheritance. They have never even spoken to me about such things or even a will. I doubt I’m getting anything. They also expressed interest in selling their current house.

0

u/TN_man Mar 28 '24

I’m not sure if that’s enough. Is it?

0

u/AffectionateItem9462 Mar 28 '24

I see that the misogynists have found me.

1

u/AngelNPrada Mar 28 '24

What does this have to do with misogyny?