A majority of Americans don’t know how much money they need to save for retirement, while 19 million Americans don’t think they will retire at all, according to a new survey from Bankrate.com
Bankrate found that 61% of Americans are unsure about their savings. For those that do have an estimate, the median amount is $650,000. Millennials are more likely than other generations to be unsure about their retirement needs.
Nine percent of both millennials (18-37 years old) and baby boomers (54-72 years old) said they never plan to retire.
“The key to retirement savings is to actually save for retirement. Put away at least 10% of your pay, including any employer contributions, into your retirement account and do it yesterday," said Bankrate analyst Taylor Tepper, adding that online calculators can help savers estimate how much they need to sock away.
More than half of Americans have sought advice on retirement planning, according to Bankrate. The survey found that 26% of respondents consulted a personal financial advisor, 21% asked family or friends, 11% used an online retirement calculator and 10% contacted a bank or financial institution. Others relied on expert commentary and roboadvisors.
Seven percent of respondents in Bankrate’s survey said they need between $250,000 and $500,000 for retirement. Eight percent believe they need to save either $250,000 or less, $500,000 to $1 million, or over $1 million.
Gen Xers are twice as likely as other age groups to say they need over $1 million to retire. Residents of the Northeast and West are also more likely to target $1 million in savings.
More than half (61%) of Americans expect little to no contributions from Social Security, while 20% said the program will likely fund about half of their retirement savings. Another 17% said most to all of their retirement money will come from Social Security.
Tepper said Social Security will help fund a sizable portion of most retirements, even for millennials, “despite erroneous declarations that the pension program will soon go bankrupt.”