Half of boomers have a $1.5 million retirement income gap to fill

Schwab says the average respondent was 60 years old, has $500,000 in savings and thinks they need approximately $2 million for retirement (presuming they want to spend $100,000 in retirement per year and are saving $15,000 annually), and would like to retire at 65.

What are their options? According to Schwab, “If delaying retirement was the only lever they’d be willing to pull, their options would be: putting off retirement by 11 years, saving almost $200,000 per year, or cutting their expenses in half. If they’d be willing to pull several levers – such as reducing retirement spending to $80,000 and increase their savings an additional $15 thousand a year, they would only have to reduce their retirement by six years.”