Americans need to save 53% more to retire than in 2020
Before President Joe Biden took office, the target savings figure for retirement was around $950,000. Now, that number has increased to $1.46 million.
An analysis by Northwestern Mutual found that American adults said they now need to save 53% more to retire than in 2020 (before President Joe Biden took office). The figure increased from $951,000 (2020) to $1.46 million today.
The data also shows an increase of 15% compared to last year, when the target retirement savings figure was $1.27 million. Northwestern Mutual Retail Investments President Aditi Javeri Gokhale stated:
Retirement savings fall
The Northwestern Mutual study also warned of a wide gap between the amount of money Americans think they need for retirement and what they actually save. The average figure fell from $89,300 in 2023 to $88,400 in 2024. In addition, Gokhale explained that money put into retirement savings can also be affected by taxes:
Average age Americans begin to save for retirement
The report found that 31 is the average age at which Americans begin saving for retirement. However, Generation Z is ahead of the curve by starting to save at age 22, with the goal of retiring at age 60.
Baby Boomers were the generation that took the longest to save for retirement (on average at age 37), so they say they plan to work until age 72. Generation X and Millennials project to finish working between the ages of 64 and 67. According to Javeri Gokhale.