To feel ‘comfortable,’ Americans think they need a $233,000 salary and nearly $1.3 million for retirement. Here’s what experts say

Recent inflation has significantly influenced Americans' financial expectations for both income and retirement savings. A Bankrate survey found that, on average, Americans believe they need to earn $233,000 annually to feel financially comfortable and $483,000 to feel rich. Additionally, a separate survey by Northwestern Mutual revealed that people now think they need $1.27 million to retire comfortably, up from $1.25 million the previous year.

Experts attribute these rising expectations to the lingering effects of high inflation on consumers' wallets. Sarah Foster, an analyst at Bankrate, suggests that while inflation is gradually decreasing, the financial impact on Americans may take longer to recover. As a result, many feel the need to set higher financial goals to secure their future.

To avoid being overwhelmed by these large numbers, financial advisors recommend taking small, consistent steps toward saving and living within one’s means. Starting retirement savings early and sticking to a budget can help build wealth over time, even in the face of inflation. Experts also suggest working with a financial planner to tailor retirement strategies based on individual needs, such as the desired retirement age.

For more information see Lorie Konish "To feel ‘comfortable,’ Americans think they need a $233,000 salary and nearly $1.3 million for retirement. Here’s what experts say" CNBC, July 24, 2024.

Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.