Here’s How Much Americans Expect to Need in Retirement (It’s a Lot)
February 4, 2025 by John Manganaro
While researchers generally suggest that people will need about 10 times their annual salary saved in order to successfully navigate retirement, 56% of working Americans say they expect to need at least 30 times their annual working income put away to fund life after work.
This is one of the topline findings of a recent report published by Principal. Other highlights show saving for retirement is the top financial priority for Americans, with 88% actively building their retirement nest eggs.
Read the story at Think Advisor
Wink’s Moore on the Market: Principal Financial Group just released a report that indicates that 56% of working Americans say they expect to need at least 30 times their annual working income put away to fund life after work.
Me thinks that is a little too high…
My takeaways on this report:
– 89% of those saving for retirement say they are using their employer’s retirement plan to save;
– 58% of Americans surveyed are committing at least 9% of their annual income toward retirement;
– 34% report feeling behind on their retirement goals; and
– 32% feel uncertain that they will maintain their standard of living, after leaving the workforce.
My buddy Chris Littlefield commented, “the same Americans who are showing strong savings behaviors and momentum also lack confidence in their retirement readiness.”
Interestingly, well over half of employees surveyed believe that they should have at least 30 times their annual salary saved by age 65 to live comfortably in retirement, although 10 times may be sufficient when factoring in Social Security and market returns.
Check this one out, courtesy of John Manganaro. -sjm
