Retirement is a milestone that many Americans look forward to. This phase of life generally comes after decades of working and diligently putting aside money aside.
A good deal of people who retire after decades of work take the time to be at home, travel, be with their families, or otherwise enjoy life. Some retirees are even able to enjoy the benefits of pensions which make this stage of their lives especially cushy.
However, over the years, the bar needed for retirement seems to be getting higher and higher for a lot of people. This is especially the case as the value of the dollar decreases amid historic inflation not seen in decades.
According to Newsmax, nervousness about retirement is on the rise in the United States.
The State of Modern Day Retirement in America
For the vast majority of folks, it’s a given that putting aside money on a consistent basis is a critical step towards setting oneself up for comfortable retirement life.
However, as the economy comes under more strain, the amounts of money that people view as necessary for retirement are getting increasingly higher.
For example, a fresh poll run by Capitalize shows that a good deal of Americans believe anywhere from $1.4 million to even $2.1 million is the base amount of funds that should be stashed aside for retirement.
Just heard from a student debt borrower who says they just filled out the necessary paperwork to stop saving for retirement so they can afford student loan payments in February. Biden wants this life for everyone.
— The Debt Collective (@StrikeDebt) December 16, 2021
Of course, this amount depends upon what prospective retirees have in mind for this stage of their lives. Those who want to travel during their retirement may need to put aside much more than a few million in order to be comfortable for the rest of their lives.
Additional news from Capitalize also revealed that different generations are putting aside various amounts of funds on a monthly basis in order to retire later down the line.
Younger generations, like Gen Zers and Millennials are putting aside averages of $310 and $454. Meanwhile, older generations like Gen Xers and Baby Boomers are saving monthly amounts of $472 and $535.
The Curse of Inflation
Inflation is already having an impact on current retirees and future ones to come. People who are in retirement or looking forward to retirement are therefore being advised to put aside greater sums of money.
In the worst-case scenarios, some folks are even going to have to come out of retirement. If inflation continues rising, the US dollar will have less and less value.
Retirees should expect to experience inflation over several decades of retirement and take steps to keep up with rising costs. https://t.co/KrqziIyOAH
— U.S. News Money (@USNewsMoney) January 14, 2022
This means the bar of saving enough cash for retirement in order to be set for life will get more and more out of reach. Of course, this is something that isn’t being talked about nearly as often or as loudly as it ought to be.
Are you putting aside money for retirement? Let us know in the comments area below whether or not you believe inflation is going to keep hurting Americans’ retirement plans.
