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October 23, 2015 at 09:06 AM
Doom-and-gloom headlines notwithstanding, 51 percent of Americans believe they’re on track to achieve their retirement goals.
But one could call that magical thinking, considering how much workers have managed to save for retirement.
According to the BlackRock Global Investor Pulse survey, people approaching retirement have managed to put away an average total of $136,200.
That may sound like a lot, particularly when compared with all those headlines screaming about people who have saved zero toward their retirement, but when you break it down into annual cash needs in retirement, it’s nowhere near enough.
Survey respondents estimated that they’ll need an average of $45,500 to meet their retirement expectations.
But when you calculate how much annual income they can get out of that savings balance, it only amounts to $9,150 per year—way short of what they estimate they’ll need to get by every year once they leave the workforce.
Even affluent pre-retirees, the study said, have managed to sock away $567,000, but estimate that they’ll need $59,600 to pay their annual expenses.
Their savings won’t give them that—it will only provide $37,800 per year.
