Many Americans say $1 million isn’t enough to retire comfortably

Retirement


Concentrated Asian middle-aged businesswoman using a portable computer

Working Americans over the age of 45 say it will cost them $1.1 million to retire comfortably. Bon Kantanyakiji

As the cost of living in the U.S. continues to rise, U.S. workers are rethinking how much they need to save to retire comfortably. is also much more.

According to the Schroders 2023 US Retirement Survey, people over 45 say it costs $1.1 million. A surveyed millennial said the goal is he’s $1.3 million.

The Schroders result is lower than many financial experts suggest, and lower than other surveys say Americans need to retire in peace.

Some Americans say it costs between $3 million and $5 million to feel wealthy, according to a recent report from Edelman Financial Engine, a New York City financial advisory firm. That will likely increase as millennials and Gen Z age and the cost of living continues to rise.

Isabel Burrow, Director of Financial Planning, Edelman Financial Engine, said: “Even if you’re an actual millionaire, only 30% of people actually think they’re wealthy.”

workers bear more costs

It is becoming increasingly difficult for workers to meet these retirement savings goals. According to Schroders, just 29% of millennials, he and 21% of hers over the age of 45, said they expect their retirement savings to be as high as $1 million. In fact, 59% of older workers and 49% of millennials expect to save less than $500,000.

As it stands, the median full-time American worker with a 401(k) sucked $35,354 last year (the high-income skewed average is $141,542).

Pensions are rare these days, so workers have to save more themselves than they used to. They also compete at dramatically higher prices on just about everything, especially big budget items like housing, transportation, and education.

Financial advisors say they try to limit these expenses to allow for more savings, but it can be difficult given today’s cost of living.

“Car, housing, food, and gas prices are all skyrocketing,” says Barrow. “Each year may not seem like a big deal, but when you put it all together, it’s a pretty big change. “

With wages not keeping up with inflation, that might seem a bit impossible.Scholars research found that the vast majority of workers, including 85% of millennials, worry about money every day. (Survey does not include Generation Z workers).

“We take this benchmark to heart. Billionaire status means something,” says Barrow. “Yes, but that may not be the goal you need to wear your hat to anymore. To feel wealthy or to prepare for retirement, that number goes up significantly for many.” I guess.”



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