Nearly half of twentysomethings guessed a $300K retirement goal, far below the $1.26M-$1.6M experts estimate they will need.
A majority of twentysomethings are saving for retirement, but 47% set a target of $300,000, well below the $1.26M to $1.6M range suggested by recent surveys. The median starting age for contributions is 21, with 77% participating in retirement accounts.
Despite high participation, only 17% claim strong financial knowledge, and the median accumulated balance is $43,000. Workers under 25 defer just 5.1% of pay, below the recommended 12-15% range, indicating potential long-term savings gaps.
Early withdrawals are also rising, with 28% of twentysomethings tapping 401(k) funds, often to pay off debt.