Inflation and rising living costs are pushing Americans’ expectations for a comfortable retirement to record highs. A 2024 study by Northwestern Mutual found that the average amount Americans think they need to retire comfortably is $1.46 million. This is a 53% increase since 2020 and a 15% increase since last year.
Americans think they need $1.46 million to retire comfortably.
The gap between expectations and reality is alarming. The average amount that adults in the US have saved for retirement is $88,400. This means that the average American has only 6% of what they think they need to retire comfortably.
Young Americans underestimate the importance of saving.
Generation Z is optimistic but unprepared. Generation Z expects to need $1.63 million to retire, but has only saved an average of $22,800. While young people are aware of the importance of saving early, they still face many challenges, such as low wages, high student loans, and expensive housing.
Retirement Savings Statistics in the United States:
Rising Expectations:
- According to a 2024 Northwestern Mutual study, the average American believes they need $1.46 million to retire comfortably.
- This represents a 53% increase since 2020 and a 15% increase since last year.
Alarming Reality:
- The average American adult has only $88,400 saved for retirement.
- This means the average American has only 6% of what they believe they need for a comfortable retirement.
Generational Divide:
- Generation Z expects to need an average of $1.63 million to retire comfortably.
- However, they have only saved an average of $22,800.
Retirement Savings Challenges:
- Low wages
- High student loan debt
- Expensive housing
Importance of Early Planning:
- Regardless of your generation or income level, starting to save and invest early is crucial to bridge the gap between expectations and reality.
Additional Resources:
- Northwestern Mutual Retirement Planning Study
- Employee Benefit Research Institute:Â https://www.ebri.org/
- Social Security Administration:Â https://www.ssa.gov/
Note:
These statistics are specific to the United States and do not include data from other countries.
