New Analysis Finds Under-The-Pillow-Savings Could Yield Millions in Retirement Money for Today’s 6-Year-Olds in Idaho

It turns out a good source for retirement income for today’s kids in Idaho may be right under their pillow. According to a new analysis from Delta Dental, if today’s 6 year olds invest all the money they receive from the Tooth Fairy, they could be sitting on a combined total of roughly $422 million by the time they reach 67, the traditional retirement age.

That could mean a whopping $21,000 per child when current six-year olds in Idaho hit retirement age, if, that is, they invest all their Tooth Fairy earnings. Delta Dental’s 2015
The Original Tooth Fairy Poll® found the Tooth Fairy visited 81% of homes in the United States, meaning out of the current 24,829 six-years olds about 20,111 likely received gifts.

The retirement income figure is based on a six-year old (average age for 1st tooth loss) receiving the national average Tooth Fairy gift of $4.36 (from Delta Dental’s most recent survey of U.S. parents of 6-12 year olds), with 6.5% in-mouth inflation (the typical increase for Tooth Fairy gifts from year to year) for each subsequent tooth, and a 9.6% return on investment based on historic stock market returns (S&P 500 average) per year until they turn 67.

By region, the retirement savings will vary in line with the average 2014 Tooth Fairy gift:
• Northeast: $20,477 (average 2014 Tooth Fairy gift of $4.16)
• Midwest: $13,910 (average 2014 Tooth Fairy gift of $2.83)
• South: $25,362 (average 2014 Tooth Fairy gift of $5.16)
• West: $23,004 (average 2014 Tooth Fairy gift of $4.68)

According to Delta Dental’s The Original Tooth Fairy Poll®, the average Tooth Fairy gift reached a record high last year, up 24.6% from 2013 when the average gift was $3.50.