A quick google search states that “the average household in the United States spends $61,334 a year on expenses.”
Let's assume an individual at age 25, who plans on working until they are age 65, wants to save enough for retirement to have the ability to afford $61,334 in expenses per year for 25 years.
A quick calculation in excel shows that, with an average inflation rate of 3% per year, in 40 years it will take $200,073.83 to have the same purchasing power as $61,334.00 currently has today. In 65 years (The last year of this individual's expected retirement) it will take $418,810.16 to accomplish what $61,344.00 can currently accomplish in 2023.
The worst part, if we continue to apply this inflation calculation year over year for 25 years after retirement, we get a sum total cost of living for those 25 years of $7,713,454.66. Meaning it will cost this individual 7.7 million dollars just to survive with basic expenses being covered…
It is important to note that there is limited research in my viewpoint, and the calculations are my own, but I find it would be impossible for the average American, who by a quick google search seems to only make $31,133 on average a year to ever be able to save even a 10th of the amount required to survive. Even with high-risk investments and other undocumented sources of income it would take an incredible amount of luck to pull off the numbers listed above.
Is it any wonder we aren't having kids? Is it any wonder we are suicidal? Is it any wonder that we work far and above 40 hours a week just to make ends meet, and we are exhausted and depleted and discouraged? Life has lost its incentive, and yet somehow, we carry on, despite knowing we are just minutes away from total failure.
I know this won't get a lot of attention. It's not an eye grabbing social media one liner with pretty colors and witty remarks, but to anyone who finds this, I'd be interested to know what you think.