How Much Money Do You Need to Retire?
June 24, 2019 by Bernice Napach
$1.7 million. That’s how much Americans believe they should save in order to retire, according to a Schwab survey of 1,000 401(k) plan participants between the ages of 25 and 70. Unfortunately, few are likely to attain that goal.
Almost 60% of survey respondents said their 401(k) plan was their only or largest source of retirement savings, and 51% are contributing less than 10% of their salary to their 401(k), with the average annual contribution totaling $8,788.”
“The people we surveyed have a realistic target for retirement, but many likely aren’t on track to get where they want to go,” said Steve Anderson, president of Schwab Retirement Plan Services in a statement. Only 23% of respondents reported contributing the maximum allowed in their 401(k) plans, which is currently $19,000 annually for employees under 50 and $25,000 for those 50 and older.
Yet close to 90% of survey respondents consider a 401(k) account a “must-have benefit,” almost as important as health insurance coverage.
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