What’s going on:
American workers estimate they’ll need $1.8 million in savings to retire comfortably, according to Business Insider. The data stems from a survey published by Charles Schwab where only 37% of respondents believe it’s highly likely they’ll reach their retirement savings target. The survey reveals increasing concern about the impact of inflation and stock market volatility on retirement savings.
Insider reports that inflation, market volatility, and economic conditions are causing changes in spending and saving habits among American workers, with over a third of the survey participants planning to delay their retirement. Additionally, when job hunting, most respondents ranked a 401(k) plan as a crucial benefit.
Why it matters:
The report highlights financial anxiety that many Americans face concerning retirement, driven by current economic uncertainties. The increasing importance of retirement benefits like 401(k) plans signals a shift in employees’ priorities and expectations from their employers. With more workers willing to delay retirement due to financial insecurity, this survey brings attention to the need for better financial planning and education.
How it’ll impact the future:
The increased value placed on retirement benefits might also inspire more companies to offer financial programs to help employees navigate their retirement planning more effectively. Additionally, this trend of delayed retirement could result in an older workforce in coming years, further influencing the competitive labor market and succession planning.