Current:Home > FinanceHere's how much money Americans think they need to retire comfortably-LoTradeCoin
Here's how much money Americans think they need to retire comfortably
View Date:2024-12-24 08:06:59
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! (215)
Related
- Louisiana House greenlights Gov. Jeff Landry’s tax cuts
- School culture wars push students to form banned book clubs, anti-censorship groups
- 5 killed in Illinois truck crash apparently died from ammonia exposure: Coroner
- Can AI be trusted in warfare?
- Georgia's humbling loss to Mississippi leads college football winners and losers for Week 11
- A grizzly bear attack leaves 2 people dead in western Canada. Park rangers kill the bear
- Family using metal detector to look for lost earring instead finds treasures from Viking-era burial
- Kentucky man linked to Breonna Taylor case arrested on drug charges
- Bradley Cooper and Gigi Hadid Enjoy a Broadway Date Night and All that Jazz
- Philadelphia journalist who advocated for homeless and LGBTQ+ communities shot and killed at home
Ranking
- Five best fits for Alex Bregman: Will Astros homegrown star leave as free agent?
- A second UK police force is looking into allegations of sexual offenses committed by Russell Brand
- Crews search for possible shark attack victim in Marin County, California
- Runners off the blocks: Minneapolis marathon canceled hours before start time
- Why Cynthia Erivo Needed Prosthetic Ears for Wicked
- Brain surgery left TOKiMONSTA unable to understand music. Now every song is precious
- New Maryland law lifts civil statute of limitations for all child sex abuse claims
- Can AI be trusted in warfare?
Recommendation
-
Relive Pregnant Megan Fox and Machine Gun Kelly's Achingly Beautiful Romance
-
McCarthy says I'll survive after Gaetz says effort is underway to oust him as speaker
-
Car drives through fence at airport, briefly disrupting operations, officials say
-
Wind power project in New Jersey would be among farthest off East Coast, company says
-
Investigation into Chinese hacking reveals ‘broad and significant’ spying effort, FBI says
-
US Rep. Matt Gaetz’s father Don seeks return to Florida Senate chamber he once led as its president
-
Wait, what? John Candy's role as Irv in 'Cool Runnings' could have gone to this star
-
OCD affects millions of Americans. What causes it?