33% of Americans Think They Need $1.5Million+ to Retire, Yet 33% Have Under $50K Saved

"One of the unfortunate truths about America today is that there is a major disconnect between the amount of money you need to retire comfortably and the amount of money most people have. There is a big concern that far too many people aren't taking saving seriously enough to be ready to call it quits. This theme is reflected in the Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald Research."

"The survey paints a clear picture: a million-dollar dream meeting reality. When you consider that 33% of Americans believe they need $1.5 million or more, but an equal number, one-third, have less than $50,000 in savings, and another 14% have less than $1,000, a trend and a concern are taking place, and not for the better. Consider that if someone has $50,000 at age 50 and is looking for a moderately conservative portfolio return of just 6%."

A major disconnect exists between the retirement savings people believe they need and the savings they actually have. Approximately 33% of Americans believe they need more than $1.5 million to retire, while one-third have less than $50,000 and 14% have less than $1,000. A $50,000 balance at age 50 growing at 6% reaches only about $138,000 by 65, far below $1.5 million. Younger workers are most vulnerable: only 28% expect to retire at 65, more than half expect to work beyond 65, and three-quarters expect to work in retirement. Two central concerns are rising healthcare costs and the need for savings to last 20–30 years, and only 36% of workers report confidence in their retirement preparedness.

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