$1million No Longer Enough For Retirement? – Study

A recent survey of 226 registered investment advisers on the topic found that 71% don’t believe $1 million is enough for the average American family. And the burden increases with youth according to this article in The Street.

In the analysis from Scottrade, seniors are the only generation that may come close to needing only $1 million. Forty-four percent of advisers said $500,000 to $1.5 million is sufficient for average families in that age bracket. Findings for the other generations:

  • For Boomers (ages 43 to 64), 35% recommended $2 million to $3 million. Thirty percent suggested $1.5 million to $2 million.
  • Generation Y (ages 18 to 26) needs to save at least $2 million, according to 77% of advisers. Forty percent put the figure at $3 million.
  • Nearly half of advisers (46%) said Generation X (ages 27 to 42) should at least double the $1 million goal. Twenty-two percent suggested more than $3 million.

“Younger generations, especially, need to set their retirement goals higher than other generations and start saving as early as possible,” says Craig Hogan, Scottrade’s director of customer-relationship management and reporting.

Better start saving folks!

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