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Why wealthy Americans' retirement 'magic number' jumped to $2.6M
USA Today • • business
Key Points:
- A study by HSBC reveals that affluent individuals believe they need an average of $2.6 million to retire comfortably, a 26% increase from last year and roughly double the amount ordinary Americans estimate.
- Despite their wealth, these individuals have only saved about 52% of their retirement goal on average, with Baby Boomers saving 74%, Gen X 55%, Gen Z 45%, and Millennials 42%.
- Rising retirement costs are driven by inflation and changing retirement goals, as many affluent people plan to fund career reinvention, support family members, and account for longer lifespans.
- Nearly 60% of respondents are adjusting their plans due to longevity, with some prioritizing future healthcare costs and others spending more on lifestyle and experiences now.
- Experts advise abandoning fixed "magic numbers" for retirement savings and recommend setting personalized, flexible goals that reflect individual lifestyles, health, and retirement timing, with regular plan updates.
