In Depth

Millennials slam ‘out of touch’ savings advice

NBC journalist Jean Chatzky said workers should have saved their annual income by the age of 30

wd-savings.jpg

Twitter has erupted in outrage after a financial journalist advised millennials to save three times their annual income by the age of 40.

Struggling young workers poured out their scorn and frustration after Jean Chatzky, financial editor on NBC’s Today show, shared her saving guidance to ensure a comfortable retirement:

The advice immediately drew the attention of cash-strapped millennials, who were quick to point out that this seemingly simple formula was anything but:

For many, Chatzky’s advice was just another example of the older generation’s failure to understand that economic changes, high rents and rising living costs mean have left many younger workers on a financial knife-edge:

Many were reminded of the “avocado toast” controversy of May 2017, when a Melbourne property tycoon blamed millennials’ spending habits for their struggle to get on the property ladder.

“When I was trying to buy my first home, I wasn't buying smashed avocado for $19 and four coffees at $4 each,” Tim Gurner said in an interview that quickly went viral.

Others expressed despair that this “ideal” saving scenario was so far removed from the reality of most employees - and cast doubt on the idea of today’s young workers being able to enjoy a traditional retirement at all:

However, at least one person saw the bright side of the formula:

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