The 7 Big Lies Behind Your 401k Retirement Savings

Ben Wann
12 min readApr 26, 2023

The compound growth formula/calculator is one of the most misleading concepts common folks have been indoctrinated with in modern history.

Take a look at the image above. The math just seems so easy.

Wow, in just 10 years, I can turn an annual $20k investment totaling $120k into $198k. It’s like you’d be an idiot not to invest as much as possible, as often and early as possible, so that you could soon be a 401k millionaire, too!

Well… where are they?

All the millionaires, I mean. If this thing worked as intended, the streets would be full of the middle-class wealthy, living a comfortable and happy life.

Instead, most retirees have nothing or close to nothing. And those in the workforce are also far behind- almost universally.

As of September 2021, here are some average and median retirement savings figures for various age groups in the United States:

Ages 20–29:

  • Average retirement savings: $11,800
  • Median retirement savings: $4,000

Ages 30–39:

  • Average retirement savings: $42,400
  • Median retirement savings: $16,500



Ben Wann

Strategy-Execution & Expert Practitioner Insights | The Alexander Hamilton of Management Accounting | 10x Author | Strategy-Execution |