The 'magic number' to retire comfortably hits a new all-time high
The New Magic Number: What You Need to Retire Comfortably.
In this video, we delve into the new 'magic number' for a comfortable retirement, backed by recent studies and financial trends. Planning for retirement can be daunting, but understanding this key concept is essential for a secure financial future. Join us as we break down the research, offer practical insights, and help you get a clearer picture of your retirement goals. Don't forget to like and share this video to help others on their journey towards financial stability. #RetirementPlanning #FinancialFreedom #MagicNumber #PersonalFinance
Inflation has made the cost of just about everything in the U.S. more expensive – including retirement.
A new study published by Northwestern Mutual found the "magic number" that Americans believe they need in order to retire comfortably hit $1.46 million this year, the highest level on record.
The figure represents a nearly 15% jump from the $1.27 million that Americans said they needed in 2023, easily outstripping the current 3% inflation rate in the country.
Over the past five years, Americans' "magic number" has surged 53% from the $951,000 reported in 2020, according to the financial services firm.
A new study published by Northwestern Mutual found the "magic number" that Americans believe they need in order to retire comfortably hit $1.46 million this year, the highest level on record.
The figure represents a nearly 15% jump from the $1.27 million that Americans said they needed in 2023, easily outstripping the current 3% inflation rate in the country.
Over the past five years, Americans' "magic number" has surged 53% from the $951,000 reported in 2020, according to the financial services firm.
A new study published by Northwestern Mutual found the "magic number" that Americans believe they need in order to retire comfortably hit $1.46 million this year, the highest level on record.
The figure represents a nearly 15% jump from the $1.27 million that Americans said they needed in 2023, easily outstripping the current 3% inflation rate in the country.
Over the past five years, Americans' "magic number" has surged 53% from the $951,000 reported in 2020, according to the financial services firm.
The figure represents a nearly 15% jump from the $1.27 million that Americans said they needed in 2023, easily outstripping the current 3% inflation rate in the country. (iStock / iStock)
By generation, both Gen Z and millennials anticipate they will need more than $1.6 million to retire comfortably. Among high net-worth individuals – or those with more than $1 million in investable assets – the figure catapults to about $4 million.
Even though they expect to need more money in retirement, Americans are not actually saving more.
The average amount that U.S. adults have tucked away for retirement fell to $88,400 from $89,300 in 2023. However, that is down more than $10,000 from the five-year peak of $98,800 in 2021, the study said. In total, the gap between what people think they need for retirement and what they have actually saved is $1.37 million. By comparison, just five years ago, that was about $874,000.
The figure represents a nearly 15% jump from the $1.27 million that Americans said they needed in 2023, easily outstripping the current 3% inflation rate in the country. (iStock / iStock)
By generation, both Gen Z and millennials anticipate they will need more than $1.6 million to retire comfortably. Among high net-worth individuals – or those with more than $1 million in investable assets – the figure catapults to about $4 million.
Even though they expect to need more money in retirement, Americans are not actually saving more.
The average amount that U.S. adults have tucked away for retirement fell to $88,400 from $89,300 in 2023. However, that is down more than $10,000 from the five-year peak of $98,800 in 2021, the study said. In total, the gap between what people think they need for retirement and what they have actually saved is $1.37 million. By comparison, just five years ago, that was about $874,000.
Shoppers are seen in a Kroger supermarket on Oct. 14, 2022, in Atlanta. (Photo by Elijah Nouvelage / AFP / Getty Images)
A separate study by the Alliance Life Insurance Company of North America shows that nearly 7 in 10 respondents said they have not contributed as much to their savings due to higher prices for everyday goods, while 42% of households reported dipping into their retirement savings.
"The rising cost of living is stretching American budgets," said Kelly LaVigne, vice president of consumer insights at Allianz Life. "Just because inflation has slowed doesn’t mean prices have gone down. In the short term, it may be wise to delay any major purchases to keep saving toward your future and avoid taking on new debt."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations.
Shoppers are seen in a Kroger supermarket on Oct. 14, 2022, in Atlanta. (Photo by Elijah Nouvelage / AFP / Getty Images)
A separate study by the Alliance Life Insurance Company of North America shows that nearly 7 in 10 respondents said they have not contributed as much to their savings due to higher prices for everyday goods, while 42% of households reported dipping into their retirement savings.
"The rising cost of living is stretching American budgets," said Kelly LaVigne, vice president of consumer insights at Allianz Life. "Just because inflation has slowed doesn’t mean prices have gone down. In the short term, it may be wise to delay any major purchases to keep saving toward your future and avoid taking on new debt."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations.
-
16:05
Standpoint with Gabe Groisman
49 minutes agoEp. 34. Quick Point: The Debate on the Debate.
25 -
LIVE
Wendy Bell Radio
5 hours agoAmerica's Masterclass Gaslighters
12,906 watching -
1:23:29
The Podcast of the Lotus Eaters
6 hours agoThe Podcast of the Lotus Eaters #949
26.4K22 -
LIVE
The Pete Santilli Show
3 hours agoCol MacGregor Calls For Early Election! [Pete Santilli Show #4128-8AM]
1,769 watching -
2:10:03
AP4Liberty
3 hours agoBiden Turns Orange
26.7K3 -
17:30
Digital Social Hour
2 hours agoDaymon John’s Mastermind: The Key to Breaking $5M+
13.4K -
6:14
Sideserf Cake Studio
1 day ago $0.19 earnedI Visited My First AI Restaurant!
11.9K10 -
11:11
Morgonn
22 hours agoShould Biden DROP OUT of the presidential race??? We are being LIED to by the GOVERNMENT!!!!
18.9K19 -
22:09
ThinkStory
1 day agoHOUSE OF THE DRAGON Season 2 Episode 3 Breakdown & Ending Explained - Connection to Blood & Fire
23.1K4 -
40:00
Hack
1 day ago56 Brilliant Ways To Reuse Plastic Bottles.🔴 You Got To Try These Before You Trash One More
17.3K7