SAJ-99
Well-known member
I read an article in the WSJ today and it made me wonder. The title if you want to look it up (paywalled)

Once you have determined the answer to that question, apply this chart from FRB STL. Sure, both things can be true, I guess. But sure makes a person wonder how to gauge their own situation and the economy.

Americans Are Finally Saving Almost What They’re Supposed to for Retirement
401(k) savings rates are just a shade below the commonly recommended 15% of income
Chart is below, but it doesn't add much to the discussion. Fidelity is one of the largest 401K providers, so I don't question the data so much as the assumption. I need someone to check my logic/math on this. For some baseline data, about 70% of employed Americans have access to 401K and most are auto-enrolled. I always thought 15% was a pretty high assumption that made the FA models work better, but whatever. If the max 401k contribution for 2025 is $23,500, then 15% puts the average salary for the INDIVIDUAL in Fidelity's 401k system at almost $160,000 (average salary in US is under $65,000). Seems high. Maybe Fidelity data is skewed and they have really high-earning enrollees? Maybe people are front-loading contributions to the first half of the year so Q1 data is skewed (I have done this, so quite possible)? Maybe a spouse puts away 100% of their earnings while they live on the other's wage? What else am I missing that could get that average so high, because I don't believe it to be reflective of reality. What are the experiences of the individuals on HT?
Once you have determined the answer to that question, apply this chart from FRB STL. Sure, both things can be true, I guess. But sure makes a person wonder how to gauge their own situation and the economy.
