Poll Finds Workers Estimate Median Price Tag for Financial Security to Be $500K

By:
Chris Gaetano
Published Date:
Aug 9, 2021
Retirement

A recent poll conducted by the Transamerica Center for Retirement Studies has found that American workers think they would need about $500,000 in retirement savings in order to feel financially secure, CNBC reported. However, this is just the average, as millennials said they'd need just $300,000, while baby boomers said they'd need $750,000. When asked how they determined this figure, the largest proportion, 43 percent, said they simply guessed; 38 percent made an educated guess based on their expenses; and just 25 percent did actual calculations. 

All of these estimations are below what is believed to be the actual costs of retiring, sometimes significantly so depending on the state one lives in. These costs range from as low as $800,000 to as high as $1.4 million. In contrast, according to CNBC, the estimated median total household retirement savings among all workers is $93,000. Baby boomers have an estimated median of $202,000, while Gen X have about $107,000, millennials have $68,000 and Gen Z has $26,000.

However, for many, the point might be moot, as another poll found that 25 percent of Americans believe they will never formally retire. The 2019 poll, conducted by the Associated Press-NORC Center for Public Affairs Research, found that one in four Americans do not expect that they will ever stop working within their lifetimes. While some say this because they love their careers and find meaning in work, many also say that they simply can’t afford it. The poll found that 45 percent of all adults, including 32 percent over the age of 50, are only “somewhat” prepared for retirement, while 56 percent of those between the ages of 18 to 49 say they are not prepared for retirement at all. 

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