Younger generations score high on adding a side hustle — 43% for Millennials — and about one in six Millennials (16%) said they would get a financial advisor. In comparison, 15% said they would buy or increase life insurance coverage. Gen Z and Millennials expect to need more than $1.6 million to retire comfortably.
Just 16% of retirees say they have more than $1 million saved, including all personal savings and assets, according to the recent CNBC Your Money retirement survey conducted with SurveyMonkey. In fact, among those currently saving for retirement, 57% say the amount they're hoping to save is less than $1 million.
Yes, $2 million should be enough to allow you to enjoy a comfortable, happy retirement that suits your needs and preferences.
Expected Retirement Age by Generation
Here's a look at the average age each generation plans to retire: Gen Z: 60 years old. Millennials: 64 years old. Gen X: 65 years old.
According to Empower Personal DashboardTM data, Gen Zers have an average of $66,839 in 401(k) savings and an average of $76,568 in retirement savings (in employer-sponsored plans and individually controlled IRA savings and investment accounts).
It is a known fact that lifespan increases with each generation. For baby boomers, the average life expectancy is 70 years, for Gen X its 85, and newer generations like Gen Z and Alpha will likely exceed the 100-year mark.
Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
The Rarity of $5 Million Retirements
According to data from the Employee Benefit Research Institute, based on the Federal Reserve's Survey of Consumer Finances, a mere 0.1% of retirees have managed to accumulate over $5 million in their retirement accounts.
By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.
For the third quarter, the number of 401(k) millionaires hit an all-time high of 544,000, up 9.5 percent from the previous quarter, according to Fidelity. The number of IRA millionaires climbed nearly 5 percent to a record 418,111.
Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.
The share of Gen Z respondents who felt financially secure saw a dip to 24% from 25%. But they were the most optimistic of the different age groups, with 64% saying they are not completely secure now but will be someday. That compares with 53% for millennials, 48% for Gen X, and 26% for baby boomers.
Baby boomers haven't saved enough money for retirement
The median retirement savings of baby boomers is $202,000. Forty-three percent of 55- to 64-year-olds had no retirement savings at all in 2022, according to the Federal Reserve Board.
Forty percent of respondents identified Gen Z as the most difficult generation to work with—including Gen Z themselves. But the generation hit back, explaining that young people are prioritizing work-life balance, rather than giving their all in the workplace.
Yahoo Finance
In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.
Your home is likely your most valuable asset, and the value that you assign to it will have a great impact on your net worth calculation. A qualified real estate professional can give you an estimate of your home's value, or you can research online real estate aggregators such as Trulia or Zillow.
"For estate tax purposes all assets should be listed on the net worth statement, including tangible personal property like clothing, jewelry, furniture, cars, collections and art.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
Only approximately 10% of American retirees have successfully saved $1 million or more, as indicated by the most recent Survey of Consumer Finances conducted by the Federal Reserve. What is the recommended age to have $1 million saved for retirement? It is feasible to retire at the age of 65 with $1 million.
Rich people are often measured by their income. Wealthy people, though, are measured by their net worth – how much they own minus how much they owe. A person can earn a huge salary but not wealthy if they have high debt or no savings.
Gen Z Mental Health Statistics
According to research conducted by the Walton Family Foundation 42% of Gen Z battles with depression and feelings of hopelessness, which is almost twice as high as Americans who are over 25 (23%).
In fact, a growing number of Gen Zers say they don't expect to ever retire – at least in the traditional sense. Major steps in Gen Z's financial future, from paying for school to paying a mortgage, are increasingly feeling out of reach, making retirement seem like a lower priority, the report notes.
Skincare experts warn that getting Botox or using anti-aging creams too early can cause unwanted side effects and that vaping and e-cigarettes, which Gen-Zers gravitate toward, can also cause premature aging.