Inflation has crept into every part of Americans’ lives, including how much they now think they need to retire comfortably: a record $1.46 million, a study released on Tuesday said.
That’s a 53% surge since the $951,000 target Americans reported in 2020 and a 15% increase from last year’s $1.27 million, according to Northwestern Mutual’s 2024 Planning & Progress Study which polled 4,588 adults in January.
The jump hasn’t spurred Americans to save more, though. The average amount that U.S. adults have saved for retirement dropped modestly to $88,400 from $89,300 in 2023 but that is more than $10,000 off the five-year peak of $98,800 in 2021, the study said. The dip in savings brings the gap between what people think they need for retirement and what they’ve saved to $1.37 million.
Medora Lee | USA TODAY