Americans still worry a lot about inflation but slightly less so than last year, which helped keep their expectations for what they need for a comfortable retirement unchanged, Charles Schwab said.
Workers still think they need to save $1.8 million for retirement, and on average, they again expect their nest egg to last 23 years after retiring at age 65, according to the broker’s annual survey of 1,000 401(k) plan participants surveyed between April 17 and May 3 in the U.S. Broken down, that’s just over $78,000 a year, which is pretty close to the 2022 median U.S. income of $74,000, according to the U.S. Census Bureau.
Fifty-eight percent of respondents still said inflation was the top obstacle preventing them from saving for a comfortable retirement, but that’s down from 62% last year, the survey said. Stock market volatility was the next biggest concern at 36%, but that was also down from last year’s 42%.
“Workers are feeling more optimistic about their retirement prospects and an improving economic climate tends to boost financial confidence,” said Lee McAdoo, managing director of Schwab Retirement Plan Services.
Forty-three percent − up from 37% in 2023 − of workers now think they’re very likely to achieve their retirement savings goals, Schwab said.
Other barriers to saving for retirement remain sticky
While inflation and stock market volatility concerns eased from a year ago as obstacles to saving for retirement, other worries barely budged or even rose,…
