The amount of money that Americans believe they need to save for a comfortable retirement has surged to an all-time high of $1.46 million, according to a recent study conducted by Northwestern Mutual. This “magic number” represents a staggering 53% increase since 2020, when the figure stood at just $951,000.
The study reveals that the retirement savings goal has been rising much faster than the rate of inflation, highlighting the growing concerns among Americans about their financial security in their golden years. Despite the ambitious target, the average amount U.S. adults have saved for retirement has dropped slightly from $89,300 in 2023 to $88,400 today, which is more than $10,000 off its five-year peak of $98,800 in 2021.
“In 2023, the soaring cost of eggs in the grocery store symbolized inflation in America. In 2024, it’s nest eggs,” Northwestern Mutual chief strategy officer Aditi Javeri Gokhale explained while discussing the study. “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.”
The study’s findings underscore the pressing need for Americans to prioritize retirement planning and stay disciplined in their savings efforts. As the cost of living continues to rise under the poor economic policies of President Joe Biden, the pressure on Americans to save more for their retirement is becoming increasingly evident.
As a result of higher prices:
-36% of Americans have reduced their savings
-21% have reduced their retirement savings.
-25% will need to delay their retirement all together.
Joe Biden's America.
— Rep. Jim Jordan (@Jim_Jordan) June 2, 2022
