The Widening Gap Between How Much You Need to Retire and How Much You Have Saved

Americans’ actual retirement savings are far from their expectations of how much retirement will cost. Money magazine reported on findings from a Northwestern Mutual study which found most Americans think they’ll need about $1 million to retire comfortably, but their savings are nowhere close to that. The average amount adults have saved is just $88,400.

Baby Boomers, who are now entering retirement, seem to be in the best shape. The study saw they had the “smallest gap between their retirement expectations and reality, estimating that they’ll need $990,000 while their average savings were $120,300.”

According to the article, financial planners suggest you have 80 percent of your pre-retirement income each year in retirement. That’s impossible for the millions of Americans relying on Social Security for their retirement income. The Social Security Administration says the estimated average monthly Social Security retirement benefit is $1,907.

The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and will ensure the long-term solvency of the Social Security program.