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50% of millennials think they need $300,000 or less to retire in comfort: This is what they need

Article Courtesy | Grow Acorns | Gabriel Cortes

Twenty/20


"I'm concerned that they're not thinking big enough in terms of how much somebody should save."

How much are you going to need to retire? Whatever your answer, there’s a good chance you’re low-balling it, experts say. According to a new survey from the Transamerica Center for Retirement Studies, half of millennials (born 1981 to 1996) believe that they’ll need $300,000 or less in savings to retire comfortably — a fraction of what most estimates say they’ll need.


Gen X (born 1965 to 1980) and Gen Z (born 1997 to 2012) had slightly higher estimates for their retirement needs: The median guess for each group came in at $500,000. Boomers (born 1946 to 1964) had the highest median guess, at $750,000 — which makes sense, since many of them are near or at retirement, so they have a clearer picture of what their retirement needs will be. However, even that amount probably won’t be enough to retire on in comfort, experts say.


“The estimated retirement savings for all workers are on the low side,” says Catherine Collinson, CEO and president of the Transamerica Institute, the parent foundation for the Center for Retirement Studies. “I’m concerned that they’re not thinking big enough in terms of in terms of how much somebody should save.”

So how much money do you actually need to retire comfortably? The rule of thumb is that you want an annual retirement income that’s about 75% of your pre-retirement income, according to experts.


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