Current:Home > MarketsHere's how much money Americans think they need to retire comfortably-Angel Dreamer Wealth Society D1 Reviews & Insights
Here's how much money Americans think they need to retire comfortably
View Date:2024-12-23 21:20:04
A major trouble sign when it comes to America's sagging retirement system: The gulf between what many people say they need to put away for their later years and how much money they actually have saved.
The typical employee believes they'll need $1.27 million to retire comfortably, according to a new study from financial services firm Northwestern Mutual. Yet the average retirement account balance stands at $89,300, and even Americans who are either close to or in their retirement years are falling far short, according to the study. Most people in their 60s and 70s have no more than about $114,000 in retirement savings, the firm found.
"There is a gap between saving for retirement and what you think you need post-retirement," Aditi Javeri Gokhale, chief strategy officer at Northwestern Mutual, told CBS MoneyWatch.
Of late, Americans may believe they need to sock away more for retirement because of two years of elevated inflation, which hit a 40-year peak last year remains twice the Federal Reserve's 2% annual target. But the so-called retirement gap isn't going away, with people continuing to save far less than what they will need after they leave employment.
Americans are pushing back their expected retirement age, with the poll of 2,740 adults finding that people on average expect to work until they're 65, up from 62.6 years old in 2021. But people who describe themselves as disciplined financial planners say they expect to retire at 63, compared with 67 for those who aren't able to put more money away or focus on planning, Northwestern Mutual found.
The widespread shortfall in retirement savings around the U.S. underscores the need to start saving early, Javeri Gokhale said. "To make your retirement goals realistic, you need to start early, and you need to do comprehensive financial planning when you start early."
veryGood! (3)
Related
- Mother of Man Found Dead in Tanning Bed at Planet Fitness Gym Details His Final Moments
- Arson suspect claims massive California blaze was an accident
- Anthony Edwards cheers on Team USA table tennis after friendly trash talk, 'challenge' at 2024 Paris Olympics
- Boar's Head faces first suit in fatal listeria outbreak after 88-year-old fell 'deathly ill'
- Jelly Roll goes to jail (for the best reason) ahead of Indianapolis concert
- ‘TikTok, do your thing’: Why are young people scared to make first move?
- Secret Service and FBI officials are set to testify about Trump assassination attempt in latest hearing
- The Best Nordstrom Anniversary Sale 2024 Jewelry Deals Under $50: Earrings for $20 & More up to 45% Off
- ‘Heretic’ and Hugh Grant debut with $11 million, but ‘Venom: The Last Dance’ tops box office again
- Red Sox beef up bullpen by adding RHP Lucas Sims from the Reds as trade deadline approaches
Ranking
- Republican Dan Newhouse wins reelection to US House in Washington
- Alexander Mountain Fire spreads to nearly 1,000 acres with 0% containment: See map
- More Chinese swimmers secretly tested positive, blamed hamburgers: Report
- Saoirse Ronan secretly married her 'Mary Queen of Scots' co-star Jack Lowden in Scotland
- Amazon launches an online discount storefront to better compete with Shein and Temu
- Lilly King barely misses podium in 100 breaststroke, but she's not done at these Olympics
- Providence patients’ lawsuit claims negligence over potential exposure to hepatitis B and C, HIV
- Simone Biles, U.S. women's gymnastics dominate team finals to win gold: Social media reacts
Recommendation
-
A crowd of strangers brought 613 cakes and then set out to eat them
-
Artificial turf or grass?: Ohio bill would require all pro teams to play on natural surfaces
-
2024 Olympics: Gymnast Frederick Richard's Parents Deserve a Medal for Their Reaction to His Routine
-
Inflation rankings flip: Northeast has largest price jumps, South and West cool off
-
Jennifer Lopez Turns Wicked Premiere Into Family Outing With 16-Year-Old Emme
-
Shannon Sharpe, Chad Johnson: We'll pay US track stars $25K for winning Olympics gold
-
Israeli Olympians' safety must be top priority after another sick antisemitic display
-
2024 Olympics: Gymnast Frederick Richard's Parents Deserve a Medal for Their Reaction to His Routine