Retirees Say They Need $800K to Retire—But Most Aren’t Even Close

For decades, the idea of retirement followed a familiar script: work hard, save consistently, and eventually step away with enough to live comfortably. But for many Americans, that formula isn’t adding up the way it once did.

A recent survey of 1,000 U.S. retirees paints a clear picture of the gap between expectation and reality, and it’s a wide one.

The Growing Gap Between Savings and Reality

According to the survey, retirees now believe it takes about $823,800 to retire comfortably. Just a year ago, that number was closer to $580,000, a sharp increase that reflects rising costs across nearly every part of daily life.

The problem? Most retirees aren’t even close to that target.

On average, retirees report having around $288,700 saved. That’s barely a third of what they believe is necessary to maintain a comfortable lifestyle.

Even more striking, fewer than 1 in 4 retirees had at least $500,000 saved when they entered retirement.

Related: Some Retirees Are Skipping Meals and Medical Care to Save Money, According to New Data

Many Enter Retirement With Little—or Nothing

While some retirees have modest savings, others are entering retirement with almost no financial cushion.

About 29% say they have no retirement savings. For many, the reasons are tied to long-term financial challenges, such as living paycheck to paycheck, earning lower incomes, or underestimating how much they would need later in life.

It’s a reminder that retirement planning isn’t always as simple as setting money aside. For some, there simply wasn’t enough left over to save.

Rising Costs Are Changing the Equation

Part of what’s driving the higher savings target is the rising cost of living. Retirees report spending more than expected in several key areas, especially groceries, insurance, and housing-related expenses. Inflation has played a major role, with many saying it has reduced the value of the savings they spent years building.

That shift has forced many retirees to adjust their expectations and their lifestyles.

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Confidence Is Slipping

With savings falling short and costs rising, confidence in long-term financial stability is declining.

Nearly half of retirees say they aren’t confident they can maintain their current quality of life for the rest of their lives. Some aren’t even sure they can sustain it in the near future.

There’s also a broader concern about the future of retirement itself. About 64% of retirees believe the U.S. is facing a retirement crisis, and fewer than half think retirement will be achievable for the average American in the coming decades.

Regret and Reflection

Looking back, many retirees say they would have done things differently. More than half admit they didn’t save enough, and many say they wish they had started earlier or had a better understanding of how retirement savings and investments work.

Timing also played a role. Many retirees didn’t begin saving until later in life, missing out on years of potential growth that could have made a difference.

The Bottom Line

The idea of retirement hasn’t changed, but the numbers behind it have.

With the cost of living rising and savings falling short of expectations, many retirees are navigating a financial landscape that looks very different from what they once planned for.

The gap between what people have and what they need is becoming harder to ignore, and it’s shaping how Americans think about retirement moving forward.

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