Caleb Hammer Says Boomers Should Have $2M–$5M Saved — Joe Rogan Is Stunned, but the Numbers Don't Add Up

For any individual, it has always been advised to set aside a portion of their income and invest it to secure long-term financial stability. The amount set aside would vary depending on the economic conditions an individual is living under.

In the opinion of financial adviser Caleb Hammer, boomers could have saved substantially more had they set aside a portion of their income during the 1990s. He suggested that for some Americans, saving between 5% and 10% of their income and investing it in the S&P 500 during the prime years of their careers would have been a wise choice.

Hammer went on to declare that had people at the time done so, they would have amassed approximately between $2 million and $5 million by the time they reached retirement. However, he acknowledged that most people did not take that route.

'I'll be candid. I'm starting to not have sympathy for the boomers. I'm really not,' Hammer told Joe Rogan on the Powerful JRE podcast on 5 June.

He went further by detailing why he felt unsympathetic towards boomers, pointing to the economic environment they experienced during their working years.

'Best job market ever. Best stock market in the history of the world. Every single boomer, Gen X, whatever, that's been on my show? They lived it up and spent all the money to live the lifestyle that they wanted. They didn't even set 10% aside a month,' Hammer said. 'If they just put 5% to 10% a month aside in the stock market that they had (...) they would be multi-millionaires,' he added.

Hammer's remarks raise a broader question. While many people prioritise spending on cars, homes, or other lifestyle choices, the key issue is whether his numerical projections withstand scrutiny.

Understanding Hammer's Estimates

As noted earlier, there are economic conditions that are beyond any individual's control, which change over time. In the 1990s, the average wage rate for American workers was estimated at $21,027.98, according to the Social Security Administration.

Those figures have since increased significantly, reaching $69,846.57 by 2024. To examine Hammer's claim, Moneywise applied the 2024 wage figures to a scenario in which an individual set aside 5% of their average wage each year and invested it in the S&P 500.

Under that scenario, it was found that individuals who followed this approach would have around $550,000 today using year-end contributions. At a 10% saving rate, the figure would rise to approximately $1.1 million.

On both counts, Hammer's projections of $2 million to $5 million appear misaligned with the results. While consistent investing over long periods can yield meaningful returns, the figures presented fall well short of the sums he cited.

Depending on market conditions, an individual saving 10% of average wages from 1990 to 2025 would have a final balance of roughly $150,000. Under more favourable conditions, that balance could be significantly higher, potentially exceeding $1 million. This illustrates that long-term gains rely less on the amount contributed and more on how compounding performs over time.

Viewed in hindsight, Hammer's claims suggest that achieving the figures he mentioned would require exceptionally favourable circumstances, rather than representing a typical outcome. While the principle of long-term investing remains sound, the specific totals cited do not consistently align with the available calculations.

Why Small Investments Matter

Investing remains encouraged when opportunities arise. It does not require large sums, as even small percentages can accumulate meaningfully over time, provided expectations are kept realistic.

The discussion also coincided with growing concerns surrounding the Social Security trust fund, which resurfaced earlier this month. Unless measures are taken, Americans could see their monthly benefit payments reduced by an average of $500.

'Social Security. 2033. That's when the funds dry. So payments get cut by 25% (...) Every dollar that goes out is money that's coming in. That's projected 2033,' Hammer said.

Hence, regardless of whether an individual is a boomer, Gen X, or from another generation, setting aside a portion of excess income can still go a long way. However, investment decisions should be made without compromising current living standards and with an understanding that outcomes depend on realistic assumptions rather than ideal scenarios.