This is one magic trick you’re not going to like — the vanishing peace of mind, often linked to retirement savings anxiety.
We’re talking about the peace of mind that comes with knowing you have enough money saved up for a comfortable retirement, which seems to be disappearing like a magician’s assistant. This anxiety affects many due to the uncertainty in planning for retirement savings.
Americans’ most recent “magic number” for retiring comfortably is $1.26 million, according to a new Northwestern Mutual-Harris Poll, which was published in Investment News. That’s $200,000 less than the $1.46 million reported only a year ago. That means respondents expect to save less money for retirement, but they still worry that they won’t have enough, highlighting their retirement savings anxiety.
According to the poll, which was published in April, 25% of Americans say they have just one year or less of their current annual income set aside for retirement. More than half (51%) say they’re likely to outlive their savings and 35% report that they haven’t taken steps yet to address that dire prediction. This is a clear indication of retirement savings anxiety among the population.
“Americans’ magic number to retire comfortably has come down, but it remains high, far beyond what many people have saved,” says John Roberts, chief field officer at Northwestern Mutual, a Milwaukee-based financial services company. “The level of concern about their current savings has ratcheted up. More than half of Americans believe outliving their life savings is a real possibility, and the vast majority are living with financial anxiety.”
