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Life Health > Running Your Business > Marketing and Lead Generation

The Retirement Savings Reality Gap Grows — Again

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The gap between the amount of savings Americans think they’ll need to have a comfortable retirement and the amount they’re actually saving is continuing to grow.

U.S. adults now estimate they’ll need an average of $1.5 million to retire comfortably, up 15% from the 2023 estimate, according to new survey data from Northwestern Mutual.

The adults surveyed have actually saved $89,300 for retirement. That’s 1% lower than the average survey participants reported a year ago.

The gap between what the survey participants think they’ll need and how much they’ve saved has increased 16%, to $1.4 million.

For 831 survey participants with more than $1 million in investable assets, the average estimated nest egg need is $3.9 million, the average amount saved is just $172,100, and the average gap is $3.8 million.

What it means: Even many of the high-net-worth survey participants are in deep trouble.

The survey: The survey is part of a survey series Northwestern Mutual has been organizing since 2009.

The sample for the latest survey included 4,588 adults ages 18 or older.

Savings strategies: About 37% of the participants, including 38% of the baby boomers in the sample, who are all ages 60 or older, said they had not taken any steps to avoid outliving their retirement savings.

One-quarter of the participants said they are using the most popular income protection strategy, saving more money.

About 17% have talked to an advisor, and 16% have purchased insurance.

Credit: Adobe Stock


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