How Many Rocks Now Needed To Retire?

Northwestern Mutual’s survey says “Americans now think the magic number for retiring is “at least $1.25 million,” and if more than another financial sales pitch, it’s a 20% increase from a measly year ago …

As the WSJ notes, the survey results are all the more alarming because “while Americans say they will need more money after they retire, the average amount in a retirement savings account has dropped this year to $86,869.” The survey says that represents an 11% decline from 2021. And, oh, the expected retirement age ticked up to 64 years of age, compared with 62.6 last year.

Christain Mitchell, chief customer officer at Northwestern, told the WSJ rising inflation and volatility in financial markets are weighing on people’s mindsets. To be certain, retirees’ can see what food & fuel is now costing them and how their 401(k) funds are shrinking almost everytime they look at the latest statement. Not surprisingly, concluded Mitchell, it’s all changing people’s expectations around how much savings they will need to retire … or, stay retired … comfortably.

Davd Soul