Americans Set $1.8 Million as Target Retirement Savings Goal

New surveys reveal challenges younger workers face in saving for retirement, with many underestimating the importance of starting early.

A Charles Schwab study found Americans now believe they need $1.8 million to retire, up from $1.7 million last year, though many feel unprepared to reach this goal.
Nearly half of workers aged 21 to 34 have saved more than $50,000 in their 401(k)s, but this falls short of financial benchmarks recommended by experts for their age group.
Financial planners emphasize the importance of starting retirement savings early, as compounding interest can significantly reduce the amount needed to save monthly over time.
Older Americans report regrets about delayed saving, over-reliance on Social Security, and lack of preparation for unexpected financial setbacks such as divorce or medical emergencies.
Experts recommend maximizing employer retirement plan contributions, creating emergency funds, and considering additional savings vehicles like IRAs to build a secure financial future.