How a lot workers have to avoid wasting with the intention to really feel protected in retirement
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How much is enough for old-age provision to feel financially secure?
According to a study by the Transamerica Center for Retirement Studies, the average answer for workers of all ages is $ 500,000.
But that number varied somewhat between generations. While the median for Gen Z and Gen X was $ 500,000, millennials said $ 300,000 and baby boomers said $ 750,000.
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When asked how they calculate their retirement needs, respondents were the most likely to respond to an estimate at 43%. Meanwhile, 38% said they based their estimate on their current cost of living and 25% said they used a calculator or worksheet.
Others based their estimates on expected income or investments of 23%; Advice they have read or heard, 15%; or an amount suggested to you by a financial advisor, 15%. (Another 4% of respondents did not give a specific reason.)
The study also found that 82% of workers save through employer-sponsored measures such as 401 (k) retirement plans. Now save 68% for retirement outside of work through individual retirement accounts, mutual funds, or other accounts.
But many workers still have a way to go before they reach their destination.
The estimated average total household pension for all workers is $ 93,000. Baby boomers have an estimated median of $ 202,000, while Generation X is around $ 107,000, Millennials are $ 68,000, and Generation Z is $ 26,000.
The study was produced by the Transamerica Institute and the Transamerica Center for Retirement Studies based on an online survey conducted between November and December. It comprised 10,192 respondents aged 18 and over who were full-time or part-time.