Monday, August 12, 2019

Retirement Confidence vs. Retirement Reality

How much money will you need for a comfortable retirement? On average, Americans believe they need $1.7 million to retire, according to a recent survey from Charles Schwab.

According to another study, this one by the Employee Benefit Research Institute, two-thirds of U.S. workers said they are very or somewhat confident they’ll be able to live comfortably throughout retirement. But confidence doesn't always comport with the reality of the situation.

The good news is that 401(k) balances are near all-time highs, and in the last decade, the average 401(k) retirement plan balance rose by 466 percent. At the same time, that balance is roughly $297,700 - well short of $1.7 million.

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