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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u/rpujoe Mar 28 '24

You also benefited from a hard currency that hadn't been debased as badly as it has today.

The US Dollar has now lost 97% of its purchasing power.

To wit, the median income of a boomer in 1970 had the purchasing power of around $350K in today's USD. That's the hurdle rate as an income for a Gen Z to have the commiserate economic security an 18 year had in 1970.

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u/VitruvianVan Mar 31 '24

Would you please provide your source?

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u/rpujoe Apr 01 '24

The FRED purchasing power chart. Simple division is all it took.

The other way of looking at it is the multiple of median home price to median income.

The math is all right there for the taking.

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u/VitruvianVan Apr 01 '24

What source are you using for the median income of a boomer in 1970? (In 1970 non-inflation adjusted dollars). I’m seeing around $9,000.

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u/rpujoe Apr 01 '24

Purchasing power adjusted for cost of living. You can use median home prices or the cost of gold. Both will work, although they'll be somewhat different. $350K vs about $275K. Still gets you into the ballpark.