Here’s the Ugly Truth About How Much We Save for Retirement
Americans of all ages believe they are building healthy nest eggs. A tally of their savings says otherwise. The median-sized nest egg for baby boomers is a relatively paltry $144,000. That means baby boomers are going to take $144,000 or less – and combine it with Social Security in hopes of financing what is likely to be two decades or more of retirement.
By contrast, many professional planners suggest having something in the neighborhood of $1 million if you plan to live comfortably. The savings numbers are not much better for younger folks. They have had less time to accumulate wealth, of course, but they still appear to be way behind the curve.
The median savings by age cohort are:
- Baby boomers: $144,000
- Generation X: $64,000
- Millennials: $23,000
- All workers: $50,000
Despite those worrisome totals, 70% of workers are either “somewhat” or “very” confident that they will be able to fully retire “with a comfortable lifestyle.” And the arrival of the coronavirus pandemic has done little to dampen that enthusiasm.
