Will you ever be able to stop working? These 30-somethings are planning ahead.
Twitter TWTR, +0.33% blew up last week after MarketWatch posted a story about saving for retirement in your 30s. The piece cited a Fidelity Investments study, which suggested Americans save twice their annual salary for retirement by the age of 35, a figure that would — if continually contributed to — make up 45% of that individual’s income in retirement.
Young Americans’ savings vary. Just half (47%) of working millennials have $15,000 or more in savings, while only 16% have $100,000 or more in savings, according to recent Bank of America’s “Better Money Habits” report, which surveyed 2,000 millennials aged 23 to 37. The bank asked about the total amount of savings, including bank savings/checking accounts, IRA, 401(k) and other retirement or investment accounts.
MarketWatch spoke with a group of people in their 30s about their goals. They depict a variety of backgrounds. Some are married with children, others are single. They’ve had or have student debt, families and emergencies that have been a drain on their resources. Others have bought a home. But they’re saving, even if they admit they’ve made sacrifices as a result.
Here’s what some 30-somethings had to say about their own ability (or not) to save:
Name: Mat Burridge
Location: Hannibal, N.Y.
Profession: Sixth-grade teacher and sports coach
Marital status: Married with three children
What he’s saved: Burridge makes a salary of $55,000, plus several thousand more during sports seasons. He has saved $40,000 in a 403(b), $6,000 in a Roth IRA, plus he has an entitlement to a teachers’ pension. He will receive 68% of his salary, for the rest of his life. He will be entitled...