There’s a Retirement Crisis on the Horizon — See How Your Savings Compare to the Rest of Your Generation’s
Thirty percent of Americans believe they’ll never be able to retire.
Key Takeaways
- Nearly 40% of Americans are contributing nothing to a retirement fund; 30% say they’ll never be able to retire.
- People thought they would need nearly $1.3 million to retire comfortably in 2023, up from $1.25 million the year before.
In 1991, the average reported retirement age was 57; in 2022, it was 61, according to a Gallup survey of more than 1,000 U.S. adults.
The increase is perhaps not surprising given recent inflationary pressure, but it paints a troubling picture of what’s ahead if Americans don’t set themselves up for retirement in the years to come.
And a new survey from personal finance resource GOBakingRates suggests that many of them won’t. The research, which surveyed over 1,000 U.S. adults, revealed that nearly 40% of Americans are contributing nothing to a retirement fund — and 30% of them say they’ll never be able to retire.
Across all generations, 28% of Americans have nothing saved for retirement, per the survey. Here’s how many people have $0 saved for retirement by generation:
- Ages 18-24 (Gen Z): 28%
- Ages 25-32 (millennials): 30%
- Ages 35-44 (millennials and young Gen X): 35%
- Ages 45-54 (Gen X): 33%
- Ages 55-64 (Gen X and young boomers): 25%
“The statistic that 30% of Americans have $0 saved for retirement is alarming but not surprising,” retirement planning expert Mike Kojonen, founder and owner of Principal Preservation Services, told the outlet. “Through countless consultations, I’ve observed a prevalent lack of awareness about the cost of retirement and a significant underestimation of how much needs to be saved.”
Americans believed they would need nearly $1.3 million to retire comfortably in 2023, up from $1.25 million the year before, according to research from Northwestern Mutual.
Related: This Is the Key to the Retiree Lifestyle You Want — and the Income You Need
Yet another recent analysis from GoBankingRates determined that a $1 million retirement nest egg may only last about 20 years, depending on which state someone retires in.
Seventy-one percent of Americans gearing up for retirement have five-figure savings or less: 10% have $50,000 to $100,000, 33% have less than $50,000 and the aforementioned 28% have zero saved, according to the outlet’s research.
Key Takeaways
- Nearly 40% of Americans are contributing nothing to a retirement fund; 30% say they’ll never be able to retire.
- People thought they would need nearly $1.3 million to retire comfortably in 2023, up from $1.25 million the year before.
In 1991, the average reported retirement age was 57; in 2022, it was 61, according to a Gallup survey of more than 1,000 U.S. adults.
The increase is perhaps not surprising given recent inflationary pressure, but it paints a troubling picture of what’s ahead if Americans don’t set themselves up for retirement in the years to come.
