Don’t be fooled by the stock market’s recent gains—or even its long impressive recovery from the financial crisis. We have been in a low-return environment since the Internet bubble popped at the turn of the century, and there is little reason to believe that will change anytime soon.
Retirement savers cannot count on the markets to do the heavy lifting for them. They must save more—a lot more, according to a report from BlackRock, an asset manager. The old rule was saving 10% to 15% of pay. But Millennials will need to save 25% of pay for 40 years to get the same result that was available to boomers saving half that much, BlackRock concludes.