News about 401(k)

According to U.S. Bank's 2026 Wealth Survey, Gen Z starts building wealth at 19 on average, 13 years before baby boomers. Still, 56% of Gen Z respondents say they did everything 'right' but have not reached their financial goals, and 29% have given up on buying a home for financial reasons. The article attributes this to rising costs: the median existing home sold for 4.7 times median household income in 2025, and in-state public college tuition in 2025-26 is roughly double its 1995-96 level after inflation. It also argues that traditional 401(k) matches leave out young workers who cannot afford to contribute.

The article calculates how much capital a 63-year-old would need in an IRA rollover to generate $70,200 a year, a hypothetical $5,850 a month, without buying an annuity. Required amounts vary by yield, from $585,000 at 12% to $2,265,000 at 3.1%. Examples include about $1,293,000 for 30-year Treasuries at roughly 5.4%, $2,265,000 for SCHD at about 3.1%, about $975,000 for JEPI at 7.2%, and about $605,000 for QYLD at 11.6%, though the article warns that covered-call funds can shrink principal. Subtracting average Social Security income of $2,170 a month cuts the needed portfolio to as little as $368,000 at a 12% yield.