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- Americans say they need $1.8 million in savings to retire, according to a new Charles Schwab survey.
- But only 37% of workers think they're very likely to achieve their target, down 10% from last year.
- They listed inflation and stock market volatility as the biggest obstacles to saving for retirement.
Americans say they need $1.8 million in savings to be able to retire, according to a new survey from Charles Schwab.
And only 37% of workers think it's very likely they'll achieve this retirement savings target, down 10% from last year, according to the survey of 1,000 US 401(k) plan participants aged from 21 to 70 years old.
Nearly half said they thought that they were just somewhat likely to reach their target, while 14% didn't think they were likely to achieve it.
The survey found that 62% of respondents thought inflation was an obstacle to saving for retirement, compared to 45% last year, and 42% listed stock market volatility as an obstacle, up from 33% in 2022. The proportion of respondents who listed monthly expenses, unexpected expenses, and credit card debt as obstacles remained unchanged from the prior year.
78% percent of respondents said that inflation, market volatility, and economic conditions were affecting their spending and saving habits, and more than a third said they planned to delay retirement as a result. The workers also said that they were having to reduce the number of purchases they made, save less in general, and buy cheaper products.
"When inflation persists for an extended period of time, workers are inevitably going to feel a deeper impact on their wallets," Brian Bender, head of Schwab Workplace Financial Services, said in a statement. He added that though many workers are trying to cut back on spending, "retirement saving continues to be a priority for workers."
When looking for a new job, 88% of respondents listed a 401(k) plan as a "must have," behind only health insurance and significantly ahead of life insurance and disability insurance, flexibility in work hours and location, and the ability to work from home.