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Americans believe they need this much to retire, but actually have far less stashed away: study

Americans certainly have a good idea of ​​how much money they’ll one day need to retire — but they just don’t have the same savings in the bank yet.

A recent study showed that many Americans estimate they should have about $1.46 million saved to retire comfortably.

However, here’s the reality: Most Americans have, on average, saved less than $89,000 for retirement, according to a Northwestern Mutual study released this week.

Many Americans think they need to have about $1.46 million saved in their savings to be able to retire comfortably. Cozine – stock.adobe.com

With inflation hitting Americans’ wallets, their retirement savings have suffered immensely.

“People’s ‘magic number’ for retiring comfortably has exploded to an all-time high, and the gap between their goals and progress has never been greater,” says Aditi Javeri Gokhal, head of institutional investments and president of retail investments at Northwestern Mutual.

“Inflation expands our expectations for retirement savings and puts pressure on our ability to plan and stay disciplined,” Gokhal continued.

Northwestern Mutual reported that the staggering $1.46 million was up 15% from last year’s $1.27 million and up 53% since 2020, wiping out the current rate of inflation.

A Northwestern Mutual study poll showed that people ages 50 to 59 estimate they need to save about $1.74 million, but have only saved $115.7 thousand; people aged 40 to 49 estimate they need to save around $1.3 million, when in reality they only have $91.5 thousand saved.

The $1.46 million total many think they should have to retire was 15% higher than the $1.27 million projected by many last year, according to Northwestern Mutual. North West Mutual

But in a 2023 survey, only 40% of “Gen X” workers know exactly how much they’ll need to retire, Bankrate found.

In 2016, a US Census Bureau survey showed that the average retirement age for women was 63 and for men it was 65.

New York and New Jersey were recently ranked among the worst states to retire in, with the Big Apple ranked 7th and the Garden State ranked 2nd worst states.

According to Bankrate, only 40% of “Generation X” workers know exactly how much they will need to retire. Rawpixel.com – stock.adobe.com

The rankings, curated on WalletHub, ranked all states in three areas: affordability, quality of life and health care.

Due to the high cost of living and sky-high rents, living in New York is overall 27% higher than the national average. Housing is 80% higher than the national average and health services cost 7% more than the national average, according to apartment listing service RentCafe.

New York Post

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