 What's happening guys, it's Shane here. I got sent a very interesting article by one of my followers the other day, and it was basically talking about how much young people are saving for retirement. Now the article specifically was about millennials, but this got me thinking in general, how much are people saving for retirement? And so I decided to look into this and really figure it out, look at the averages, the medians, etc. And of course make a video about it. And so that's what we're doing today. Right after you gently tap that like button, hit the subscribe button and ring the notification bell. And by the way guys, at the end of the video, I'm going to make a very bold prediction about retirement in the future. And it's going to be what retirement is going to be like for our generation, right? Millennials and Gen Z, because I don't believe retirement, at least as it's viewed right now is going to be anything like what it will be 40 or 50 years from now. Now millennials get a lot of flak from boomers and like other people who are from the previous generations, they say that millennials are lazy, they're entitled, you know, they don't save their money, they don't invest, etc. That's kind of the argument on one hand. And then on the other hand, millennials say, hey, we lived through the 2008 financial crisis. And then just as we were recovering from that 2020 hit, right? So millennials have gotten a ridiculous amount of bad luck when it comes to the financial markets. And on top of that, the cost of college has gone up a ridiculous amount, and the dollar is not worth as much as it used to be. But interestingly enough, millennials are actually three times as likely to be thinking about early retirement as Gen Xers, which is the generation right before millennials, and twice as likely as Zoomers or Gen Z, which is the generation right after. And this is according to a survey by Northwestern Mutual. But how much money do you actually need in order to retire, at least here in the US? We could honestly do an entire video on this, but long story short, you basically follow what's known as the 4% rule. And that basically is that you should be able to live off of about 4% of whatever your total investments are. So for instance, if you have $1 million invested, you should be able to live off of $40,000 a year. So I think it's realistic to expect someone to be able to live off of about $40,000 a year. And just to keep things simple, let's say $1 million is the benchmark, right? So you really want to have $1 million saved up so that you can retire. So how much do people actually have saved and how much do they need in order to retire? Well, according to Personal Capital, which is an investment company, Gen Z has about $35,000 saved, Gen X has $568,000, and baby boomers have about $1 million. So how much do millennials have? About $166,000. Now you probably would say that this is above average just because of the fact that people who are investing likely have more money saved than the average person because the average person doesn't even start investing until they're in their 30s. But with that being said, it does look like the baby boomers that are investing on here do have enough money to retire and get about $40,000 a year. Now, some people would consider that kind of a meager retirement, but at least they have enough. Now another thing baby boomers can also rely on is they have access to social security. And social security usually isn't enough to live on just on its own, however, it covers enough that it's going to make your retirement money go much further. And unfortunately, Gen X millennials and Gen Z likely will not have social security, at least with the way it's being run right now, it's definitely not going to last long enough. And there's many, many articles across the internet on this and you can check those out. However, one thing to keep in mind is by the time retirement age comes, inflation is going to catch up. And so you're likely going to need much more than $1 million in order to retire. By the time millennials get to age 60 to 65 when they would likely, you know, want to retire, it's probably going to take more like $2 million or more. And millennials definitely are not on track to be saving that much, especially when you throw in the fact that they likely won't have social security. And having events like the 2008 financial crisis as well as 2020 is definitely not helping things. Now Wells Fargo recently came out with a report where they surveyed their customers and asked them how they're saving for retirement. And it was broken down kind of like this. So 401k or 401k like plans like the 403b or simple plan, 53% of people were saving there, 42% of people were saving for retirement in their savings account, 22% were doing a Roth IRA, 19% were doing a traditional or rollover IRA, 18% were doing a pension plan, 16% were investing in real estate, 15% certificate of deposits, 14% were doing a taxable brokerage account, 8% in annuities, 4% in something else and a whopping 24% were not currently saving for retirement at all. So what does all this mean? Most millennials are definitely not going to be on track for being able to retire by the time they get to retirement age and the social security system is likely not going to be there to help them out. Now assuming things stay exactly the same way they are right now and let's say they do have some sort of social security type system, maybe that'll help them out a little bit but even with that they likely still won't have enough to retire. So what are people going to be doing in this situation? Well here comes my prediction. I did a video recently where I talked about the countries that are the cheapest to live and retire. In this video I showed how you can realistically retire in many countries on less than $300,000 per year. As I see social media, culture, business, etc. everything is becoming more international. I think retirement is also going to follow that trend. I think in the future many Americans when they get to that age where they're about to retire, they are going to use the power of arbitrage and the fact that their dollars are worth so much more than other countries' currencies, move to those other countries and then retire very nicely. Now in my opinion, in many ways, this is a win-win for both parties. The retiree gets to go to a country and retire a lot cheaper, sometimes like, you know, one fifth or maybe even one tenth what it would cost to retire with the same lifestyle in the US. And then when they get to the country they're going to end up spending a lot of money and that is going to stimulate the other country's economies. So there is a small growing trend of people doing this and I think in the near future this is not going to be a small trend. It is going to be a huge trend. I think it's probably going to be over 50% of people that are going to be moving to other countries to retire. That's all I have for this video. Real quick one for you today. Check out my other videos right here. I made them just for you. Go ahead, gently tap that like button, hit the subscribe button, ring the notification bell and comment down below any thoughts, comments, criticisms, et cetera that you have on the video and I will see you next time.