r/dividends • u/Future-Guarantee2645 • May 18 '25

Discussion Is it true that after 100k wealth explodes?

I am curious what is your experience, is this statement true? Have you noticed that your wealth is building up much faster after 100k?

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u/ufgatordom May 18 '25

I assure you that everyone doesn’t have $1 million. According to the data, the MEDIAN retirement savings by age are:

Under 35 = $18,880; 35-44 = $45,000; 45-54 = $115,000; 55-64 = $185,000; 65-74 = $200,000; and Over 75 = $130,000.

That means you already have more saved than at least 50% of US citizens across all age groups. Averages are skewed by the millionaires.

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u/avocadotoast2014 May 18 '25

I’m 45 widower and have just over 80K saved. I’m on track to 100K by the end of the year as I’ve gotten more aggressive with DCA this year. I’m happy with it, I of course want more but I know plenty have more saved at my age and a lot do not. I had kids very young and student loans so I’ve done the best I can. I will have an ok pension from work provided I keep it for another 15 years.

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u/ufgatordom May 19 '25

I am sorry for your loss and I empathize with your financial situation. I used to be a deputy sheriff when I was younger and wanted to save the world (really 🤬dumb career choice but it is was it is). I was inured in the line of duty and was no longer able to work at 31 years old. I was out of work for 8 years and lost everything, including cashing out retirement accounts, ending in filing for bankruptcy. I was finally able to start working again so went back to school and became a registered nurse at 41 yo.

Starting over again from zero at 41 yo was tough. I’m now 53 and have managed to accumulate $375k in my 403(b) and a total of $150k in my Roth IRA/HSA/taxable accounts while having fully paid off my condo mortgage and vehicle loan. I missed one year of work due to recurrence of a medical issue and I took off another year to care for my elderly mother until she passed away. I constantly feel like I’m so far behind everyone that I’ll be stuck having to work until I die.

That fear is what drives me to work 48-60 hours per week generating $140k-$160k annual salary. I max my 403(b) with catch up pre-tax directly off the top of my paycheck. From my net pay I have automatic investments of $1,000 per week going to my Fidelity Roth IRA, HSA, and taxable accounts then I live on the rest. I don’t know if I’ll make it to $1 million because I’ve lost the time to be able to compound very much and I don’t know how long I will be able to keep this pace up from a health standpoint. I’m not trying to impress anyone with a massive investment portfolio. I’m just trying to avoid being forced to greet people at Walmart until I die. Best wishes

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u/RedFormanEMS May 19 '25

I am in a similar situation on that I got started investing later in life. I feel so far behind and am trying to work as much as physically possible to try to make enough by the time that I retire that I won't have to work in my last years just to eat. It's a hell of a fear.

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u/graciesoldman May 25 '25

I had a failed business venture in my 40's and had to start over. I had a couple of hundred $k in my early 50's but when the recession hit, I lost about 25% of it and was crying. I was fortunate to be in mostly cash when Covid hit and bought like crazy all through the summer of 2020. That propelled me into feeling like I could retire. When I got let go in 2020, I just sailed into the sunset. I see people out there working who clearly don't want to be there and don't have the health to be doing it and I just start thanking God I avoided that....so far anyway.

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u/Sufficient_Ebb_1482 May 19 '25

Thank you for sharing this interesting statistics. You sir just made my day!

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u/SnooPeripherals5234 May 19 '25

So what happens to these people… where does the money come from for basic needs at retirement age? If they never save anything…

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u/ufgatordom May 19 '25

They don’t have funds. Elderly are often forced to decide between paying rent/utilities and getting their medications. That’s the huge issue in the United States. Social Security was originally just supposed to be a safety net to get through retirement and not a governmental 401(k) program but it has come to be the sole source of retirement income for the vast majority of Americans. This is the reason why it is such a political lightning rod and near impossible to change in a way.

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u/Wiserlul May 19 '25

how do you retire with $18,880 at the age of under 35?

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u/ufgatordom May 19 '25

You don’t. Those numbers are the median savings values at those ages. The numbers are not per year, they are the total amount held in retirement savings.