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

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.

A recent report revealed that RIAs have seen an uptick in clients who are concerned about their retirement plans.

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.