longcast
Well-Known Angler
The 'magic number' to retire comfortably hits a new all-time high
Americans say they need more money than ever in order to be able to retire comfortably as chronic inflation continues to erode their purchasing power.
www.foxbusiness.com
The figure represents a nearly 15% jump from the $1.27 million that Americans said they needed in 2023, easily outstripping the current 3% inflation rate in the country.
Over the past five years, Americans' "magic number" has surged 53% from the $951,000 reported in 2020, according to the financial services firm.
Even though they expect to need more money in retirement, Americans are not actually saving more.
The average amount that U.S. adults have tucked away for retirement fell to $88,400 from $89,300 in 2023. However, that is down more than $10,000 from the five-year peak of $98,800 in 2021, the study said. In total, the gap between what people think they need for retirement and what they have actually saved is $1.37 million. By comparison, just five years ago, that was about $874,000.
While inflation has fallen considerably from a peak of 9.1% notched during June 2022, it remains above the Federal Reserve's 2% goal. And when compared with January 2021, shortly before the inflation crisis began, prices are up a stunning 18.49%.
Anybody want to guess what happened? I could tell you, but would risk a swift poofing.
Last edited:
