Employees say they need to save a hefty $1.8 million for retirement – and expect that nest egg to last 23 years, says a new Charles Schwab study of 1,000 401(k) plan participants. Plus, they're feeling more confident they can get there, according to Schwab's 2024 401(k) Participant Study, which found that 43% of workers say they are "very likely" to achieve their retirement goals vs. just 37% in 2023.
What age are workers expecting to retire?
- Gen Z: age 60
- Millennials: age 64
- Gen X: age 65
- Boomers: age 68
Inflation and stock market volatility continue to be the biggest obstacles to saving for a comfortable retirement, though workers are slightly less concerned about these factors in 2024:
- Inflation: 58% (vs. 62% in 2023)
- Market volatility: 36% (vs. 42% in 2023)
"Workers are feeling more optimistic about their retirement prospects and an improving economic climate tends to boost financial confidence, but it's not the only factor," said Lee McAdoo, Managing Director of Schwab Retirement Plan Services. "We're seeing heightened awareness around 401(k) investments and performance – a promising sign that workers are actively engaging with their accounts and cultivating knowledge to help them reach their goals."
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