Per Market Watch

Most Americans aged 45 and older were now expecting their retirement savings to fall short of $500,000. To be specific 59% of them expected less than half a million in retirement savings.

Schroders' head of U.S. defined contribution, Deb Boyden, gave a comment on the situation, sharing how there were gaps between what Americans say they need and their expectations of what they would have. Boyden also highlighted the two reasons why this was the case.

Boyden said that this was either due to a lack of planning or difficulty in saving and investing. The statement also highlighted how only "so few Americans nearing retirement" were confident about their money.

Boyden: “There are profound gaps between what American workers say they need for a comfortable retirement and what they expect to have,”

Now, Millennials from 27 to 42 say, on average, that they would need around $1.3 million to enjoy a comfortable retirement. However, the percentage that said they would reach their $1 million target sat at just 29%.

This was just 2% more than the millennials that expected to have less than $250,000 in retirement savings.

So far, the retirement savings of Gen Z have averaged just $33,000. However, it's also important to consider the fact that not all Gen Zers were of working age.

Gen Z included individuals born between 1997 to 2012, and in 2023, some Gen Zers were still short of the working age of 21. Baby Boomers, Americans born from 1946 to 1964, had a median of $162,000 in retirement savings.

70% of parents are starting to help their adult children, ages 18 and up, by sacrificing their savings. The report came with the news that there was a $7 trillion retirement-savings shortage.

Parents that were most likely to help their children were from Gen X, people aged 43 to 58.

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