Monday, January 18, 2016

Most Are Clueless about Retirement Needs

Most of the nation's workers say they need to save at least $1 million to feel financially secure in retirement, according to the 16th Annual Transamerica Retirement Survey of Workers. Fully 57 percent of Gen Xers feel that way, as do 55 percent of Millennials and 53 percent of Boomers. But this is how much workers have saved so far, by generation...

Total household retirement savings
Millennials: $25,000
Generation Xers: $61,000
Baby Boomers: $132,000

Clearly, the nation's workers are so far from achieving their $1 million retirement security goal that it's safe to say most will never make it. Perhaps a little planning is needed. When asked how they came up with the $1 million estimate of needed savings, 57 percent of Millennials, 55 percent of Gen Xers, and 49 percent of Boomers say it's just a guess. Only 16 to 24 percent have made an estimate of retirement savings needs based on current living expenses, and the percentages who have used a retirement calculator, completed a worksheet, or talked to a financial advisor is in the single digits.

Source: Transamerica Center for Retirement Studies, 16th Annual Transamerica Retirement Survey of Workers

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