The amount of money experts say Americans should have saved for retirement has gone up. (Getty Images)
SALT LAKE CITY – As many Americans are dealing with record-high inflation, they find it harder to prepare for retirement by bulking up their savings. Which makes it harder for them to take experts’ advice when it comes to putting enough away for retirement.
Experts say the typical American will need around $1 million for retirement, but now the estimated total is around $1.25 million.
Deseret Mutual Benefit Administrators financial advisor, Shane Stewart, told KSL NewsRadio’s Dave & Dujanovic that the number depends on a few factors.
“You could actually live on less (than you’re living on now) in retirement if you’re careful because right now it’s likely you have debt while working,” Stewart said.
Stewart told KSL NewsRadio that if you prepare for retirement by paying off all debts and have some type of income stream, like social security, you won’t need a million bucks in the bank to retire.
If that million-dollar mark is daunting, it might help to look at retirement in a different way.
“Don’t focus on that number so much as what can you do, and really, what are you going to do in retirement. Because that number ($1 million) is pie in the sky.”
NASDAQ reports that many adults believe they should have ten times their annual salary in retirement savings. Another retirement goal is saving about 15% of their yearly salary.
Whether that is realistic may be judged the average amount that Americans have currently saved for retirement, which NASDAQ reports is a little more than $86,800.
Contributing: Alejandro Lucero and Simone Seikaly