Most millennials are nowhere near a millionaire's retirement pot today, but Vanguard's newest data suggests many could still reach one by the time they stop working. The figures, drawn from the firm's 'How America Saves 2026' report and modelled into retirement projections by the financial site Investopedia, point to a single decisive factor: the share of salary a worker sets aside each year, combined with the decades left for that money to grow.
Investopedia's analysis modelled two savers, one aged 30 and one aged 40. Each started from the median Vanguard balance for their age group, and each was tested at three total contribution rates: 10%, 12%, and 15% of salary. The projections assumed a 7% average annual return, pay rising 2% a year, and retirement at 65.
