As Americans grapple with the rising cost of living, younger generations are facing increasingly daunting retirement savings goals. A recent study by Northwestern Mutual reveals that Gen Z workers will need to save $1.6 million by the time they reach 65, based on current rates.
The study found that the “magic number” for retirement savings has skyrocketed 53% since 2020, reaching an all-time high of $1.46 million. This figure represents a significant increase from the $951,000 estimate just four years ago.
For those with higher incomes, the savings target is even more challenging. Individuals earning above the national average may need to save as much as $4 million to maintain their current lifestyle in retirement.
Americans' "magic number" for retirement surged to an all-time high. $1,460,000
Meanwhile, the average amount that U.S. adults have saved for retirement dropped from $89,300 in 2023 to $88,400 today but is more than $10,000 off its five-year peak of $98,800 in 2021. pic.twitter.com/fhqTht1LBu
— JohnThompson (@3MinuteMortgage) May 2, 2024
Despite these ambitious goals, the average amount U.S. adults have saved for retirement has slightly decreased from $89,300 in 2023 to $88,400 today, more than $10,000 off its five-year peak of $98,800 in 2021.
WSJ: The New Magic Number for Retirement Is $1.46 Million pic.twitter.com/QJBmnIeNaX
— We Study Markets (@WSM_TIP) April 3, 2024
The study’s findings underscore the growing concerns among younger generations about their ability to save enough for a comfortable retirement. As the cost of living continues to rise, the pressure to start saving early and maintain a disciplined approach to retirement planning is becoming increasingly evident.
Bidenomics has been toughest on seniors on a fixed income and young people just starting out.
Americans are being forced to dip into their retirement savings to pay everyday bills, and the “magic number” to retire is skyrocketing.
Thanks, Joe.https://t.co/TMxl4g5Snn
— Coach Tommy Tuberville (@SenTuberville) April 10, 2024
