Is $1 million the new benchmark for a comfortable retirement?
The term “millionaire” used to apply exclusively to the rich. Lately, though, Americans increasingly opine that anyone who hopes to retire in comfort will need at least $1 million in savings.
In one 2023 survey, from the global investment firm Schroders, older workers predicted they would need $1.1 million to retire comfortably. A survey from Northwestern Mutual put the figure at $1.27 million. In a 2024 poll by Charles Schwab, 401(k) participants said they’d need $1.9 million to retire. A New York Life survey set the bar at a staggering $4.3 million.
Not a millionaire? Don’t despair. Many Americans retire on a shoestring
If you aren’t a millionaire, don’t despair: Most of us don’t have anywhere near that much in retirement savings.
Protect your assets: Best high-yield savings accounts of 2023
According to the 2022 federal Survey of Consumer Finances, the median household in the 55-64 age group holds about $185,000 in retirement savings. Among all families, the median retirement balance is $87,000.
Is that enough?
In a new analysis, the personal finance site GOBankingRates identified 16 states where, by their math, you’ll need at least $1 million in savings to cover 25 years of retirement.
The report considers annual expenses for a retired person in each state, drawing from Labor Department statistics, the local cost of living index and Social Security data.
First, some good news: The two most popular…
