How much you will have for retirement if you max out your 401(k) in your 20s

Americans rely heavily on 401(k)s plans when it comes funding their retirement.

As of 2020, around 60 million workers across the U.S. used the tax-advantaged accounts to save for their future.

Most people can contribute up to $19,500 to their 401(k) in 2021, but the limit can change from year-to-year to keep up with inflation.

Investing nearly $20,000 per year will equal a lot of money when it comes time to retire decades in the future.

Here’s a case study.

CNBC crunched the numbers, and we can tell you how much you will have for retirement if you max out your 401(k) during your 20s.

Check out this video for a full breakdown.

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.


Connect with CNBC News Online

#CNBC
#CNBCTV

[hewton]

4% return? Where are they putting the money; in a bank cd? 😂

[ratm]

If im still gonna be working at 67 I swear to

[joynatalie]

I have about 5% of my portfolio in uranium stock any advice on any other stock that I can
grow my $300k capital to a million dollars?

[tracylucky]

Please I'd like to know ways in which one can reduce his losses in the foreign exchange market.
Thank you.

[briansimmons]

If you are here in 2021 and you don't have any investment or alternate source of income, then you are not safe, invest now! It's better late than never.

[OneNewHope]

These videos are always so worthless. They somehow combine completely unrealistically high expectation of disposable income at a young age, and completely unrealistically low growth rates on your investments...

[BlakeBake]

If you're only getting 4% growth, you need to fire your financial advisor (or yourself). The S&P has averaged 10-11% since its inception.

[kellenpeterson]

Lol how many 20 year Olds can invest 20k a year lmao

[szim]

Buy bitcoin…. 401k looks like a joke way for banks to make money off your savings.

[lifeisshort]

I contributed 20% plus 10% company stock purchase with 15% discount since out of college for 32 yrs and retired at 56. If I can most can. Maxed out 50 plus catch up contribution too.

[michaelngfinance]

How much annual salary do you need to have in your 20s in order to max out your 401(k)? Also, how much your parents would have to pay for your university education including an MBA? I love to fantasize sometimes. lol

[annabellewood]

You’ve a new subscriber here😊❤️. I love this channel. I’m 62 with the net worth of over $2million dollars before my husband’s death we travel the world. I’m a single mother, I have 4(four) kids and I helped them occasionally with everything but funds for their academics each of them had to decide on how to play for fees and that really helped me a lot and am happy 3 have advanced degrees and my 2nd works on the Tesla company living very fine with his family, but I eventually lost my 2nd daughter in a fatal accident. All the same God knows the best

[rd]

Impossible to know the answer as there are too many variables and too much time to look ahead.

[yan]

Why assume 4%? That means im barely beating inflation.

[ScienceBitch]

4% would be barely keeping ahead of inflation

[ia]

I think this pandemic has taught people the importance of multiple streams of income unfortunately having a job doesn’t mean security rather having different investments is the real deal

[devo]

Is this literally every financial video that CNBC uploads?
Just comment section full of obvious bots, seemingly discussing crypto currency and telling people to invest?

[John.Wilson]

Thats not very practical considering very few 20 years old can afford to max out their 401k each year.

[CaptainBenjamins]

What a waste of a video with this 4% BS
I’m not maxing out in my 20s to retire at 67. Put it in an S&P 500 fund and retire at 59.5 years old folks

[ifonlyunu]

it's funny how these employers never tell you you can retire before age 65. When you're 21 age 65 is so far off most people never think about it.