Living the "High Life"
Part of the reason I want to go into banking is so I can retire comfortably at 55-60. After an average career in IB/PE, is it common for senior bankers to retire to a nice ($2M-$3M) home with $10M in savings? Or is that a bit excessive?
I'm just a prospect so take this with a grain of salt. The bankers that retired at some point this year at the ages of 55-60 would have started their careers (assuming they joined on as analysts after undergrad) started their careers 33-38 years ago or from somewhere between 1982 and and 1987. I don't know a whole lot about banking history, but it's safe to assume that the industry has changed greatly since when they started. If you start working in banking next year (given that you're a summer associate), then you would retire between 2053 and 2058. No way of knowing how much the industry is going to change between now and then. It's fun to speculate but there's really no way of knowing. You might be able to do that, you might not. There's two things you can do 1) have other reasons to go into banking and you won't be disappointed if you don't meet those goals exactly and 2) do things other than banking (such as saving and investing) to try and reach those goals.
This is a great response. Looking at current MDs or recently retired MDs is useless, because pre-08 was a pretty different era of finance as far as comp. No one knows what banking will look like in 5, 10, or 20 years, so you can’t look at historical average income/net worth and assume it’ll be the same 30 years from now.
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