Americans think they need $1.27 million to retire comfortably, according to Northwestern Mutual’s 2023 Plans and Progress Survey.
This number is up from the $1.25 million reported last year. People who already have over $1 million in investable assets believe they need $3 million to retire comfortably.
“The magic number for Americans’ retirement readiness continues to climb,” Aditi Javeri Gokale, chief strategy officer, president of retail investment and head of institutional investment at Northwestern Mutual, said in a statement Thursday. rice field.
The good news is that Americans are saving and investing more, despite the economic climate, she added. The average amount an adult saves for retirement increased slightly by 3% in 2022, from $86,869 for her to $89,300 for her.
“This is a step in the right direction and the opposite of last year when the gap widened instead of narrowing,” said Javeri Gokhale. “The difficult news is that there continues to be a huge gap between how much they think they need to retire and how much they have saved.”
On average, Americans have a 45% chance of surviving beyond their savings.
Generation Z (born between 1996 and 2010) survey respondents expressed the most optimism of any generation in the survey that they are financially ready for retirement when the time comes. . More than half of Generation X (born 1965-1980) expressed doubts that they would be able to meet their goals, and almost half of millennials (born 1981-1996) and working baby boomers (born 1946-1964) expressed a similar opinion. question.
Studies show that feelings about retirement readiness influence how long people expect to work. Generation Z workers expect him to retire at age 60, while baby boomers expect him to work until age 71 on average. Millennials and Generation X plan to work until he’s 63 and he’s 65, respectively.