The cost of retirement is on the rise, with Americans now believing they’ll need about $1.8 million, a notable increase from last year’s $1.7 million. Confidence in reaching this target, however, is waning.
High inflation, even though it has eased, remains a concern for 62% of the workforce, casting a shadow over their retirement aspirations.
Experts like Thomas Salvino of Performance Wealth express that while the $1.8 million goal is tough in today’s economic environment, there are ways to live comfortably in retirement with less. Every individual’s requirement varies, with factors such as lifestyle playing a significant role.
The rise in automatic 401(k) enrollment by employers has significantly boosted participation rates. While planning for retirement, it’s essential to make informed financial choices. Calculating the required retirement fund involves considering numerous factors, including expected lifespan and desired annual income.
Want a deeper dive into how you can plan better for your golden years? Explore the full study on retirement preparation here.
