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Survey Finds 35% Delaying Retirement as Advisors Say $1.5 Million Isn’t Enough

Rising costs, thin savings, longevity risk prompt recalculations.

Overview

  • New York Life’s survey of 2,262 adults reports that 35% have delayed or plan to delay retirement, citing insufficient savings (51%), inflation (46%), and the economic environment (32%).
  • Advisers in a separate Investopedia analysis describe the oft-cited $1.5 million goal as a checkpoint rather than a secure target once healthcare, taxes, and inflation are considered.
  • At a 3% withdrawal rate, $1.5 million yields about $45,000 a year, which with the average Social Security benefit near $24,000 totals roughly $69,000 that falls short in many states.
  • Federal Reserve data show average retirement savings of $200,000 for Americans ages 65 to 74 in 2022, underscoring the gap between typical balances and recommended targets.
  • Most respondents express worry about market conditions (92%), fewer than half account for healthcare and long-term care in plans (45%), and many are revising strategies, including paying down debt (23%) or working longer (16%).