: What’s the magic number for retirement savings? Americans say it’s more than $1 million, but most will fall short of that goal.

by | Apr 5, 2023 | Stock Market

Americans think they need more than $1 million to retire, but the majority won’t meet that goal. According to the Schroders 2023 U.S. Retirement Survey, working Americans age 45 and older expect they will need about $1.1 million in savings in order to retire, but only 21% of people in that age group expect to have even $1 million. That’s down slightly from the 24% in 2022 who said they expected to save that much. 

The survey found that 59% of those workers expect to have less than $500,000 saved for retirement, including 34% who said they will have less than $250,000. “There are profound gaps between what American workers say they need for a comfortable retirement and what they expect to have,” said Deb Boyden, head of U.S. defined contribution at Schroders. “This could be from a lack of planning, or for many it might just be too hard to save and invest enough to reach their retirement goals. The fact that, once again, so few Americans nearing retirement are confident they have enough money speaks volumes about the work we still need to do.” Read: Americans think they need $1.25 million to retire. Is that enough? Millennial workers, who are now between the ages of 27 and 42, expect on average that they will need about $1.3 mill …

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