How much money do you need to retire?
**Related Video Above: Proposed Social Security cuts — the impact on Baby boomers and Gen X-ers.**
(WJW) — Retirement, that far off dream.
A new study found Americans believe they need more money than ever to stop working indefinitely and live in retirement comfortably.
‘Don’t pass out’: Single dad who bought lottery ticket with lunch wins $1 million
Northwestern Mutual found the average worker now believes they need about $1.46 million for a successful retirement. However, the average amount people have saved up for their golden years is a little less than $90,000, according to the survey. On top of that, Credit Karma found last year that about 27% of those 59-plus don’t have any money saved.
It was only 2020, when those polled in the same survey said $951,000 socked away was more than enough to retire.
“The magic number is at an all-time high — it’s 50% higher than what it was before the pandemic,” Aditi Javeri Gokhale, chief strategy officer at Northwestern Mutual, said in an interview with CBS MoneyWatch. “The cost of living in general, whether in reality or perception, seems to be more costly now than it was before.”
She also told CBS MoneyWatch that people are becoming more skeptical of Social Security (which currently sits at about $23,000 annually) being around by the time they set to retire, leading many Gen Zers to already start saving for retirement in their 20s.
Annual inflation ticks higher to 3.5 percent in March
“Young people today recognize the value of retirement planning and building wealth early on in life and are getting a significant head start over their parents and grandparents,” Gokhale said in a press release.
A little more than 4,500 people were polled for the new survey.
Close Modal
Suggest a Correction
Suggest a Correction
