Core Insights - Millennials, defined as those born between 1981 and 1996, are entering their peak earning years but face challenges such as rising living costs, student debt, and housing issues, which may hinder retirement savings [2] - Despite these challenges, time and compounding interest can enable a significant portion of this generation to retire as millionaires if they maintain consistent contributions to retirement accounts and utilize employer matching [2] Retirement Savings Data - According to Vanguard's report, the average and median retirement savings for millennials vary by age group: - Ages 25-34: Average savings of $42,640 and median savings of $16,255 [3] - Ages 35-44: Average savings of $103,552 and median savings of $39,958 [3] Future Savings Projections - A median 30-year-old millennial with $16,255 saved could potentially grow their retirement savings to $1.2 million by age 65 with monthly contributions of approximately $636 over 35 years [4] - A median 40-year-old millennial with $39,958 saved could grow their retirement savings to $762,329 by age 65 with monthly contributions of about $719 over 25 years [4] Contribution Breakdown - For a 25 to 34-year-old, the median defined contribution plan account balance is $16,255, with an annual median salary of $57,356. The total annual contribution (employee and employer) is 13.3% of salary, amounting to $7,628, assuming a 7% average annual return on investments [5]