What is the amount of money you should have saved in the US to be able to retire without problems according to the experts?
While there is no one-size-fits-all answer, financial experts have provided some guidelines to help Americans determine how much they should aim to save.
The Social Security Administration sends money every month to retired workers. However, the monthly payments are not enough for most people. Half of all seniors get at least 50% of their retirement income from Social Security, according to the Center on Budget and Policy Priorities.
There is no standard amount to be able to retire comfortably in the United States. The amount you need will depend on a variety of factors, especially where you plan to live in retirement due to the area’s cost of living.
However, the figure people believe is necessary to retire comfortably in the United States has risen to a new high, according to a study.
How much money do you need to retire in the US? This is what people think
According to the 2024 Planning and Progress Study from Northwestern Mutual, a financial website, American workers estimate that they will need $1.46 million to retire comfortably. The result was obtained from a survey of 4,588 adults at the beginning of the year.
This new figure represents a 15% increase from the $1.27 million reported last year. In a span of a few years, the people’s projected number has increased 53% from $951,000 that those surveyed reported in 2020.
However, the average amount is less than that shared by different generations. For example, those who belong to Gen Z believes they would need $1.63 million to retire comfortably. Millennials estimate the number to be $1.65 million.
Gen Xers indicated they believe $1.56 million is necessary to retire comfortably, while Boomers gave a lower amount: $990,000. However, high-income earners said $3.93 million.
On the other hand, the average amount adults have saved for retirement fell modestly from $89,300 in 2023 to $88,400 today, but is more than $10,000 short of its five-year high of $98,800 in 2021.
How much is the average Social Security payment per month?
By 2024, average payments for retired workers rose to just over $1,900, according to the SSA. Other Social Security payments would be as follows for 2024:
- Surviving spouse with two children: $3,540 to $3,653
- Single elderly surviving spouse: $1,718 to $1,773
- Worker with a disability, his or her spouse, and one or more children: from $2,636 to $2,720
- All workers with a disability: from $1,489 to $1,537
The maximum benefit at age 62 is $2,710; at age 65 it is $3,426 ,and at age 66 it is $3,652.
As for payments claimed at full retirement age (67 years for people born after 1960), the maximum benefit is $3,822. Those who delay their retirement until age 70 are eligible for a maximum payment of $4,873.