- According to a Northwestern Mutual study, Americans expect to work longer and save more to be able to retire comfortably.
- According to the report, the majority of respondents to the survey stated that they would need at least $1.25 Million to retire.
- The study also found that the average age of people has increased from 62.6 years in 2021 to 64 years in 2022.
Americans say retirement is getting more expensive.
A survey released on Tuesday by financial services company Northwestern Mutual showed that Americans believe the magic number to comfortably retire has gone up to $1.25 million – a 20% increase from 2021.
According to the study that surveyed 2,381 Americans, the expected retirement age has risen from 62.6 in 2021 down to 64 now.
Northwestern Mutual chief customer officer Christian Mitchell said that the current economic situation is an indicator of why Americans may feel less optimistic about their retirement.
Mitchell said, “It’s an uncertain period for many people, driven largely due to rising inflation and volatility within the markets.” “We have also seen an increase in spending year over year not only because of inflation but also because people are returning to a normal life after the earlier days of the pandemic.”
Mitchell said that these factors are forcing Americans to adjust their expectations. The average retirement savings account amount has dropped 11% in the past year, to $86,869 on average, despite consensus that retirement is more expensive, according to the survey.
His advice? Consider consulting a financial advisor to help you reduce your retirement age by years.
“It’s one of those questions on so many people’s minds – how long should I expect to work in order to save enough for retirement?” said Mitchell.
It’s difficult to answer, as there are many factors to consider. It’s a problem that too many people are trying to solve in a bubble.
The government has promised an 8.7% cost-of-living adjustment to Social Security benefits for those who are struggling to reach the big number of retirement. Juliana Kaplan of Insider reported the story.
