The Realtor.com article “Older Millennials Have Less Than 20 Years To Save Enough for Retirement—and They’re Already $427K Behind,” by journalist Anna Baluch, examines the growing retirement savings gap facing many Americans in their 40s. According to research, the median retirement savings for older millennials is just $73,000, far below both their own expectations and what many financial professionals believe may be necessary to support a comfortable retirement.
The article, which was also featured in Yahoo Finance, explores several factors contributing to this shortfall, including the lingering effects of the Great Recession, rising housing costs, inflation, higher interest rates, and the increasing expenses associated with homeownership. Many older millennials are balancing mortgage payments, property taxes, insurance premiums, family expenses, and other financial obligations during years that would traditionally be prime retirement-saving years.
Our Chief Investment Officer and CEO, Steven Rogé, agreed that housing-related expenses have become an increasingly significant obstacle to retirement planning. Steven noted that costs associated with homeownership extend well beyond mortgage payments. Property taxes, homeowners insurance, maintenance expenses, and major home repairs have all risen substantially in recent years, putting additional pressure on household budgets and reducing the amount many families can save for the future.
Steven also emphasized the importance of making thoughtful financial tradeoffs when retirement savings have fallen behind. Rather than focusing on appearances or lifestyle comparisons, he highlighted the value of prioritizing long-term financial goals and making intentional spending decisions that can free up resources for retirement savings. His perspective reinforced a key theme of the article: while catching up may require difficult choices, meaningful progress is still possible with a clear plan and disciplined action.
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R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, and Beverly, Massachusetts office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary. We have helped clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, as well as our process, explore our detailed overview of services and approach.
