"BlackRock, the world's largest asset management firm with $14 trillion in assets under management, surveyed 1,000 registered voters, asking how much they'd need to retire comfortably, and the average response was roughly $2.1 million. "That's a lot. More than I was expecting," Fink wrote. And "almost no one is close," considering 62% of those surveyed had less than $150,000 saved for retirement. That figure is only about 7% of what they think they need to retire comfortably."
"Fink, 73, has long warned about America's retirement crisis, with one of his other main arguments being the security system will fail because life expectancy is rising. Plus, retirement and needing senior care gets expensive. "When you're retired, you're basically living on a fixed income," Rita Choula, senior director of caregiving with the AARP Public Policy Institute, previously told Fortune. "If you have not factored in an additional $7,000, $8,000, $9,000 a year for your fixed income, that can have a big impact.""
""The problem will only get harder and nastier as the oldest Gen-Xers start to retire," Fink argued. "They're the first generation primarily dependent on 401(k)s. And the 401(k) trend is growing with Millennials and Gen Z." Even those who have built up a nest egg and a 401(k) have a separate problem on their hands, he argues. Because 401(k)s don't "come with instructions," it's hard to know how to save versus spend a lump sum for the rest of your life."
Americans face a growing retirement shortfall: BlackRock's survey shows an average perceived need of roughly $2.1 million to retire comfortably, while 62% have under $150,000 saved. Rising life expectancy and increasing senior-care costs strain retirement security. Millions of baby boomers lack sufficient savings and clear plans, and older Gen Xers confront amplified challenges as they rely primarily on 401(k)s. 401(k)s often place responsibility on individuals without clear guidance for converting balances into sustainable lifetime income. Even households with nest eggs struggle with how to draw down lump sums across retirement years.
Read at Fortune
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