Americans participating in a workplace retirement plan say they will need to have saved $1.3 million before they retire, according to a survey published this summer by Schroders, but only 30% believe they will reach the $1 million milestone.
The research shows nearly half of retirement savers (48%) said they will have less than $500,000 saved before retiring, and another quarter (26%) expect to have less than $250,000.
Faced with this shortfall, most savers expressed at least some concern about outliving their assets in retirement. The good news, according to a new analysis from the consulting and accounting firm the Colcom Group, is that savers who started late or have otherwise fallen behind schedule have a number of potential steps to take.
While “catching up” will require some financial sacrifices in the short term, the analysis explains, the payoff in retirement is well worth the effort.
“As a baby boomer, you may find yourself approaching retirement with less savings than you’d hoped,” the report states. “Whether due to economic fluctuations, personal circumstances, or simply the demands of life, many late starters face this challenge. However, it’s never too late to take action.”
See the slideshow for a review of potential strategies to help worried savers maximize retirement contributions and catch up on their financial goals.
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