An average American believes they need to save up $1.7 million in order to retire. This is according to a recent survey conducted by financial services provider Charles Schwab Corporation.
The amount of money needed for retiring is down from last year’s $1.9 million. However, fewer Americans believe they will be able to reach that goal in 2022 than they did in 2021.
The survey was conducted among 1,000 U.S. workers who work in a company with 25 or more employees and participate in the 401(k) plan. 47% of participants believe they will meet the $1.7 million goal compared to 53% who believed that they would reach the mark of $1.9 million in 2021. Around 13% think they are unlikely to meet their goal.
Despite taking part in the 401(k) plan, most participants are not solely relying on it for their retirement income. Just 37% expect all of their retirement income to come from 401(k), while 63% expect it from multiple other sources as well, including savings and investments, part-time work, real estate income, and social security.
Among other things, the survey also revealed that the pandemic had a big influence on the retirement timeline for many Americans. Approximately 24% of survey responders will now retire later than planned due to pandemic effects.