Current:Home > NewsHere's how much money Americans think they need to retire comfortably -DataFinance
Here's how much money Americans think they need to retire comfortably
View
Date:2025-04-14 23:39:12
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! (8721)
Related
- Stamford Road collision sends motorcyclist flying; driver arrested
- Preliminary Dutch government talks delayed as official seeking coalitions says he needs more time
- CBS News Philadelphia's Aziza Shuler shares her alopecia journey: So much fear and anxiety about revealing this secret
- Dow jumps 520 points as investors cheer inflation slowdown
- Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
- Horoscopes Today, December 1, 2023
- Watch this deer, who is literally on thin ice, get help from local firefighters
- Lifetime's 'Ladies of the '80s: A Divas Christmas' has decadence, drama, an epic food fight
- Why members of two of EPA's influential science advisory committees were let go
- Biden campaign rips Trump's health care policies in new ad
Ranking
- US appeals court rejects Nasdaq’s diversity rules for company boards
- Tennessee’s penalties for HIV-positive people are discriminatory, Justice Department says
- Inmate stabbed Derek Chauvin 22 times, charged with attempted murder, prosecutors say
- Felicity Huffman breaks silence on 'Varsity Blues' college admission scandal, arrest
- Why members of two of EPA's influential science advisory committees were let go
- GOP businessman Sandy Pensler joins crowded field of Senate candidates in Michigan
- Excerpts of Supreme Court opinions by Sandra Day O’Connor
- European gymnastics federation rejects return of athletes from Russia and Belarus to competition
Recommendation
Paige Bueckers vs. Hannah Hidalgo highlights women's basketball games to watch
Macaulay Culkin receives star on the Walk of Fame with support of Brenda Song, their 2 sons
How Glee’s Kevin McHale and Jenna Ushkowitz’s New Project Will Honor Naya Rivera’s Voice
Semitruck failed to slow down before deadly Ohio crash, state report says
Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
Lifetime's 'Ladies of the '80s: A Divas Christmas' has decadence, drama, an epic food fight
2 Nevada State Troopers killed in hit-and-run while helping motorist on Las Vegas freeway, authorities say
The Essentials: Dove Cameron gets vulnerable on 'Alchemical.' Here are her writing musts