Share Your FIRE Milestones - 2021

[LateToFIRE]

One in 1,000 retirees have over 5 million.

Data from the Employee Benefit Research Institute, which utilizes the Federal Reserve's Survey of Consumer Finances, indicates that only about 0.1% of retirees have over $5 million saved for retirement. Additionally, about 3.2% have savings exceeding $1 million.

Wow, I am feeling a little more special now. Do you have a link to that info?

Thx

 

[street]

One in 1,000 retirees have over 5 million.

Data from the Employee Benefit Research Institute, which utilizes the Federal Reserve's Survey of Consumer Finances, indicates that only about 0.1% of retirees have over $5 million saved for retirement. Additionally, about 3.2% have savings exceeding $1 million.

That is interesting, thanks for sharing it.

 

[Andre1969]

Actually, the wording is a bit tricky. The quote I found was "Retiring with $5 million dollars is an exceptionally rare achievement. According to data from the Employee Benefit Research Institute, based on the Federal Reserve’s Survey of Consumer Finances, a mere 0.1% of retirees have managed to accumulate over $5 million in their retirement accounts. This statistic underscores the exclusivity of such high-value retirements."

However, "Retiring with $5M" is NOT the same thing as having "$5M in their retirement accounts." Still, whether you only consider retirement-specific accounts, or all investible assets, $5M is a pretty exclusive club!

Most of the figures I've seen thrown around indicates that $5M puts you roughly in the top 1%, but that's total net worth, not just investible assets. And I've seen some figures recently, putting $13.6M as the new threshold for the top 1%! So I guess the real answer is that it's like trying to figure out how many licks it takes to get to the Tootsie Roll center of a Tootsie Pop. The world may never know!

 

[street]

I was talking to my son, and he said with his company with people starting in the last few years. That they say after 35 years of employment with that company they could hit the 10M mark at retirement age. No pension plan now with them but have a 401K and Company has a very generous % they add to your 401K. I have no more detail on how they have this setup or the % they add but pretty impressive future for them, if all works out that way.

 

[freedomatlast]

I remember the generous pension plans offered by many companies (non-government) in the 80's and how so many of those have been dissolved over the years.

I hope his company can keep their word over the next 35 years and keep up the generous 401K contributions.

 

[street]

I remember the generous pension plans offered by many companies (non-government) in the 80's and how so many of those have been dissolved over the years.

I hope his company can keep their word over the next 35 years and keep up the generous 401K contributions.

My son has 21 years in with them now. He has a real good pension with them plus he has the 401K, but Company doesn't contribute to his 401K. Since he has the pension along with a half dozen others, they opted to keep their pension plans as is but new employees have this 401K with Company contributing to their 401K plan to make it as even as they could.

 

[LateToFIRE]

Actually, the wording is a bit tricky. The quote I found was "Retiring with $5 million dollars is an exceptionally rare achievement. According to data from the Employee Benefit Research Institute, based on the Federal Reserve’s Survey of Consumer Finances, a mere 0.1% of retirees have managed to accumulate over $5 million in their retirement accounts. This statistic underscores the exclusivity of such high-value retirements."

However, "Retiring with $5M" is NOT the same thing as having "$5M in their retirement accounts." Still, whether you only consider retirement-specific accounts, or all investible assets, $5M is a pretty exclusive club!

Most of the figures I've seen thrown around indicates that $5M puts you roughly in the top 1%, but that's total net worth, not just investible assets. And I've seen some figures recently, putting $13.6M as the new threshold for the top 1%! So I guess the real answer is that it's like trying to figure out how many licks it takes to get to the Tootsie Roll center of a Tootsie Pop. The world may never know!

Thanks for the info and clarification. Indeed, I've seen that threshold for the 1% NW vary all over the map, from about ~$5M to $11M (and now the $13.6M you mention). I suspect (i.e. educated guess) that retiring with a $5M portfolio is somewhere in the 1-2% of the current population, especially given that $1M in a retirement account puts you in the 3.2%. In other words, the person (or couple) with a +$5M portfolio probably has at least $1M of that in retirement accounts. Crazy that there are not better stats on this stuff.

 

[Koolau]

Whatever the numbers, I think this group (our Forum members) would be at least what I would describe as "Top Tier" when it comes to "Investable Assets" as well as "Net Worth."

Defining the "percent" of population gets tricky because of the ways one can look at the figures. In any case, we are, for the most part, a very blessed group. Merry Christmas to all.

 

[Dtail]

I remember the generous pension plans offered by many companies (non-government) in the 80's and how so many of those have been dissolved over the years.

I hope his company can keep their word over the next 35 years and keep up the generous 401K contributions.

That's one reason why although not a big pension, I am taking it as a lump sum next year.

 

[thatguy]

DW's age 70 SS starts in a couple months. Just confirmed the amount. That's a milestone cus a bunch of years into retirement, we'll finally be getting both pensions & both SS benefits. Total is 30% more than we used to make working.

 

[Greenblue]

[...]No pension plan now with them but have a 401K and Company has a very generous % they add to your 401K. I have no more detail on how they have this setup or the % they add but pretty impressive future for them, if all works out that way.

That's curious to me, I assumed the 401k contribution limit would be the same no matter who was contributing it, so a company couldn't be "generous" as they add to your 401k without hitting a wall made of extra taxes and fees.

A quick search found "The IRS allows total contributions from both the employee and the employer to reach a much higher limit than the employee salary deferral. For 2024, that amount is $69,000" That's nuts! Good nuts, though!

Anyway, going to be doing my quarterly Net Worth calculation tomorrow. Really hoping to juuuuust touch that 2 million milestone. *glances at stock market* Not looking good though. XD

 

[street]

That's curious to me, I assumed the 401k contribution limit would be the same no matter who was contributing it, so a company couldn't be "generous" as they add to your 401k without hitting a wall made of extra taxes and fees.

A quick search found "The IRS allows total contributions from both the employee and the employer to reach a much higher limit than the employee salary deferral. For 2024, that amount is $69,000" That's nuts! Good nuts, though!

Anyway, going to be doing my quarterly Net Worth calculation tomorrow. Really hoping to juuuuust touch that 2 million milestone. *glances at stock market* Not looking good though. XD

Yes, that is a great way to make up for lost pension plans if companies would use this method.

I believe they match up to 10% out of company's pocket. I don't believe you have to have a 401K either, so company would do the 10% and you don't have to participate in companies 401K plan.

Very health benefit for the working man.

 

[Koolau]

That's curious to me, I assumed the 401k contribution limit would be the same no matter who was contributing it, so a company couldn't be "generous" as they add to your 401k without hitting a wall made of extra taxes and fees.

A quick search found "The IRS allows total contributions from both the employee and the employer to reach a much higher limit than the employee salary deferral. For 2024, that amount is $69,000" That's nuts! Good nuts, though!

Anyway, going to be doing my quarterly Net Worth calculation tomorrow. Really hoping to juuuuust touch that 2 million milestone. *glances at stock market* Not looking good though. XD

Good luck with the $2Mil. And Happy New Year!

 

[gayl]

This is a weird milestone. Finally my pension covers day to day 110% (10% to savings just because). So my SSA goes into Schwab savings & my RMD will go into a new account set up to cover last 4 grandkids college costs.

(Eldest (27m) graduated owing ~$7800.00, gainfully employed. Next up (23m) didn't go to college & earns over 100k yr. Then the 4 littles)

The eldest of the 4 got enough scholarships that she didn't need it this year, most will be there next year so I might only have to kick in 2-3k or $0. Nothing wrong with a little skin in the game. Guess that new account will just go for the youngest 3.

 

[Harris4crna]

Congratulations on FI and influencing future generations to be successful.

 

[glasswave]

That's quite a milestone, congrats. It very patriotic to help others prepare to be gainful in our high tech economy.