Think $1 million in the bank is enough to retire?
More than 1,000 American workers between the ages of 18 and 70 believe they need between $1.4 million to $2.1 million to retire comfortably, according to a survey conducted by Capitalize retirement savings website.
The average age for the survey, which has a margin of error of +/- 3%, was 34, and included 21% baby boomers, 32% Gen X, 34% millennials, and 34% from Gen Z.
Pew Research defines these generational cohorts as; baby boomers born between 1946-64, Gen X born between 1965-80, millennials born between 1981-96, and Gen Z born between 1997-2012.
According to the survey, baby boomers believe they will need $1.8 million for retirement, compared to $2.1 million for Gen X, $1.4 million for millennials, and $1.9 million for Gen Z.
The distinct groups are also saving at different rates, with baby boomers putting aside $535 a month, compared to $472 for Gen X, $454 for millennials, and just $310 per month for Gen Z, the survey found.
Retirement and savings are not the only financial planning areas where generational lines are drawn.
Younger generations are more open to new avenues of investment, like cryptocurrencies when compared to older generations, the survey found.
Just 14% of baby boomers and 20% of Gen X respondents said they are investing in crypto, compared with 54% of millennials and 56% of Gen Z.
When it comes to maximizing their yearly IRS allowed contributions to retirement funds, Gen Z is the most likely to do so, with 21% reporting they maximize contributions each year, compared to 10% for both millennials and baby boomers, and just 5% of Gen x, according to the survey.
Another item thrown into the calculation is what these future retirees plan to do once they officially “turn in their papers.”
Baby boomers don’t expect to retire until age 66, while millennials and Gen X are both hoping to stop work at 61, and Gen Z is targeting age 60 to retire, according to the survey.
Even with the plans and hopes to retire even earlier than prior generations, most of those surveyed across all generations think they will either still be working for full (33%), or part time (30%), or own a business (33%) well into their retirement years.
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