WirecompaniesDextape brief
Transamerica Institute’s CEO warns of a retirement ‘perfect storm’ as even affluent Americans fall short of the $2.6 million goal
Uncertainty about the future of Social Security, persistent inflation, competing financial priorities, and the threat of job disruptions are all making it harder for Americans to save for retirement.
Dextape brief
HSBC research conducted by Ipsos found that affluent Americans, defined as people holding at least $100,000 in assets they can invest, now estimate they would need $2.6 million for a comfortable retirement, a 26 percent rise from a year earlier. On average they have saved about half that figure, with baby boomers at 74 percent of their target and millennials at 42 percent. Transamerica Institute, a nonprofit, cites Social Security uncertainty, persistent inflation, competing priorities and job disruption as obstacles, and its CEO, Catherine Collinson, called the situation a perfect storm. Health costs are also climbing, with a Fidelity report estimating average spending of $185,500 for a 65-year-old retiring this year. Separately, the Social Security trust fund is expected to exhaust its reserves by 2032.
Why it matters: The findings show wealthy households also face retirement shortfalls, a backdrop that matters to crypto readers weighing long-term financial planning across asset classes.
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