HomeTop U.S. NewsHere is How Much You Need to Retire According to Schwab

Here is How Much You Need to Retire According to Schwab

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.

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