Workers fear they may not save the $1M they need for comfortable retirement

Workers fear they may not save the $1M they need for comfortable retirement
Bankrate survey finds that most feel they are behind on their retirement savings.
SEP 28, 2023

Saving for retirement is proving challenging for many American workers, who are concerned that they are behind schedule.

For more than one-third of respondents to a Bankrate.com survey, the target is to save at least $1 million for their retirement (13% say $1 million to $2 million). But even for those aiming for a more modest sum, more than half believe they are behind with their savings, including 37% who say they are significantly behind.

Meanwhile, 21% say they are on track with their savings and 16% are ahead, including 6% who are significantly ahead.

However, the percentage of those who think they will have a shortfall rises to 69% among Gen Xers and boomers, those closest to retirement.

NO PROGRESS

Asked about their current retirement savings habits, more than one-third are saving the same as they were last year, while 17% are contributing less.

“Amid the tumultuous developments of the past several years, including a short but severe recession and a period of high and sustained inflation, a majority of Americans say they are not where they need to be to achieve their retirement savings goals,” said Mark Hamrick, Bankrate senior economic analyst. “Compared to our survey about a year ago, there has been no progress on this front. Those closer to retirement age are among those feeling this sense of urgency the most.”

But do respondents feel that they will be able to turn things around and build their retirement savings up to their goal amount?

Of those who have an idea of how much they will need to save to have a comfortable retirement (a quarter don’t know), 45% think it’s unlikely they will achieve it, including 24% who say it’s not at all likely. These stats rise to 57% and 31% among Gen Xers.

Half of poll participants are more optimistic, but this tends to be the younger cohorts.

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.