A recent Bankrate survey has revealed that a staggering sixty-one percent of Americans do not know how much retirement savings they will need to have. Of the remaining respondents, eight percent never plan on retiring at all, another eight percent feel they will need less than 250,000 dollars, 15% believe that they will require somewhere between 250,000 and one million dollars, and a final eight percent are under the impression that they will need over one million to enjoy their retirement.
Millennials are the least likely to know how much retirement will cost. Nearly 70% of them are unsure of what they should have in retirement savings. However, the older generations aren’t doing too much better. Over half of Gen Xers, baby boomers, and the silent generation are just as lost when it comes to how much they should have in savings.
This lack of certainty regarding the amount needed may be partially responsible for the general feeling that people are not saving enough. Only 40% of Americans of pre-retirement age feel that they are on the right track to saving enough for retirement. Sixty percent feel uncomfortable with their ability to manage investments within products such as a 401(k).
So, how much is needed in your retirement savings?
That is a question without a simple answer. It depends on how long you plan on working, what your life expectancy is, what your needs are, and even what part of the country you live in. Having a look at your current as well as predicted future expenses is a good place to start.
Consider seeking the advice of a financial advisor or a family member who has experience with their own retirement or managing the finances of a parent. There are also retirement calculators online, such as the one available by Bankrate, that may help you to work on finding your own projected cost of retirement. It is never too late to take measures to ensure that you have enough for the retirement you deserve.
We can Help! Our local advisors can help your family make a confident decision about senior living.