Americans’ retirement savings have languished for some time. However, they took a turn for the worse in 2022, with cracks suddenly appearing in more nest eggs.
Recently, Northwestern Mutual surveyed 2,381 adults for its 2022 Planning & Progress Study and asked them how much money they have saved for retirement.
Survey respondents reported that this year, their retirement savings have dropped — by an average of 11%. While the typical respondent had $98,800 last year, such savings since have shrunk to $86,869.
Northwestern Mutual didn’t speculate as to why savings are down. However, the stock market has been falling for most of the year, and inflation has been rising in the same period. Those factors likely account for at least some of the decline in savings.
As retirement savings shrink, people are getting a bit more pessimistic — or at least realistic — about how much money they might need to retire.
As we reported recently, U.S. adults now estimate they will need $1.25 million to retire comfortably, up from the $1.05 million survey respondents suggested in 2021. For more, check out “Here’s the New Magic Number for Living Comfortably in Retirement.”
How to boost your retirement savings
If your retirement savings have taken a hit, it’s time to get up, dust yourself off and double down on your efforts to build a nest egg.
To get started, enroll in the Money Talks News course The Only Retirement Guide You'll Ever Need,
This 14-week boot camp is intended for those who are 45 or older, but anyone can benefit from the lessons.
Taught by Money Talks News founder Stacy Johnson, the course will provide you with such wisdom as:
- How to invest to reach your retirement goals and never outlive your savings
- How to score up to $12,000 more in Social Security benefits every year
- How to stay in top shape and manage your medical costs