While Americans believe they need $1.46 million to retire comfortably, the average amount U.S. adults have saved for retirement falls far short of this “magic number,” according to a recent study by Northwestern Mutual. The study found that the average retirement savings have dropped slightly from $89,300 in 2023 to $88,400 today, more than $10,000 off its five-year peak of $98,800 in 2021.
The findings highlight the growing gap between Americans’ retirement goals and their actual savings progress. The “magic number” for retirement has increased by a staggering 53% since 2020, reaching an all-time high of $1.46 million, while the average savings have struggled to keep pace.
Bidenomics: Americans 'Magic Number' for Retirement Up 50% Since Biden Took Office via @WestJournalism https://t.co/NGqjloWgr6
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“People’s ‘magic number’ to retire comfortably has exploded to an all-time high, and the gap between their goals and progress has never been wider,” said Northwestern Mutual chief strategy officer Aditi Javeri Gokhale. “Inflation is expanding our expectations for retirement savings, and putting the pressure on to plan and stay disciplined.”
The study’s findings underscore the urgent need for Americans to prioritize retirement planning and take proactive steps to boost their savings. As the cost of living continues to rise, individuals must remain committed to their long-term financial goals to ensure a comfortable retirement.
