- A new Charles Schwab study found that Americans need to have $1.8M in savings before they can retire.
- Only 37% of employees think they are very likely to reach their goal, down 10% since last year.
- Inflation and volatility in the stock market were cited as the two biggest obstacles to retirement savings.
According to a recent study, Americans need to save $1.8 million to retire. SurveyCharles Schwab
Only 37% think they are very likely to achieve it. RetirementAccording to a survey of 1,000 US plan participants between the ages of 21 and 70, their savings targets are down by 10% from last year.
Almost half said that they thought they were somewhat likely of achieving their goal. 14%, however, did not believe they would be able to.
In a survey conducted in 2018, 62% of respondents believed that inflation was a barrier to saving for retirement. That’s up from 45% the previous year. And 42% said stock market volatility was likewise proving to be obstructive, up 33% since 2022. The proportion of respondents listing monthly expenses, unanticipated expenses, and credit cards debt as obstacles has remained the same from last year.
78% of respondents stated that Rent a carMarket volatility is a concern. Economic conditionsThe workers said the changes in their savings and spending habits had impacted them, and that more than one third planned to delay their retirement. They also stated that they have to make fewer purchases, save less, and purchase cheaper products.
In a recent statement, Brian Bender, the head of Schwab Workplace Financial Services said that workers will feel an even greater impact when inflation continues for a long period of time. He added that though many workers are trying to cut back on spending, “retirement saving continues to be a priority for workers.”
In their search for a new position, 88% respondents ranked a 401 (k) plan among the “must haves”, behind only life insurance and ahead of disability insurance, flexible work hours and locations, and working from home.
