Workers in the US think they need to save $1.7 million to retire

Americans with a retirement plan 401(k) were asked how much they needed to save to pay for retirement. The answer they gave was $1.7 million.

That number may seem like a lot to many, especially considering that a quarter of Americans have no retirement savings at all.

However, it’s actually a lower goal than the estimate workers gave when asked the same question a year ago, according to a new survey from the company’s Retirement Plan Services. financial services Charles Schwab.

At 2021, workers said they believed they would need $1.9 million to retire, the survey found.

Americans are likely to lower their retirement savings goals after two years into the pandemic, causing many to cut back on spending by postponing vacations and cutting back on dining and entertainment expenses, said Catherine Golladay, CEO and chief financial services officer. Charles Schwab blinders. Likewise, in 2022, workers have been affected by inflation, which they now see as their main obstacle to saving for their golden years.

“Inflation was really evident in what is on the minds of investors 401(k). That finding was something we’ve seen for the first time in a long time,” Golladay told CBS.

Inflation exceeded to stock market volatility as the main obstacle to saving, even after the Stock Market fell into a bear market earlier this year.

Around 45% of respondents said that inflation is their main obstacle to retirement, while the 33% indicated the volatility of the market, according to the survey made to a thousand people with retirement plans 256 (k).

Retirement plans 401(k)s and 403(b), they had savings of about $141 thousand dollars in 2021 on average, according to CBS. But older workers have much more money saved, with an average balance for those between 55 and 64 years of age of $256 thousand dollars. Still, that’s a long way from the $1.7 million they say they need.