Most People Think They Need $1.8 Million to Retire. Do You?
Americans still believe they need $1.8M to retire comfortably, Schwab study shows.


The majority of Americans believe they need $1.8M to retire comfortably, according to the 2024 401(k) Participant Study by Charles Schwab. While that's unchanged from 2023, it is up from $1.7M in 2022.
For many people, that figure feels out of reach as inflation remains the top obstacle (48%) to saving for a comfortable retirement. Workers cited stock market volatility as the second biggest concern at 36%, down from 42% last year. The study also found that people expect to retire at age 65 and have their retirement savings last for 23 years if using 401(k) plans to save.
Retirement goals
On a positive note, workers are increasingly confident they will ultimately reach their retirement savings goals, with 40% of Gen Xers and 50% of Gen Z individuals remaining optimistic. Approximately 43% of workers now think they are very likely to achieve their retirement savings goals, up from 37% in 2023, per the study.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“Workers are feeling more optimistic about their retirement prospects and an improving economic climate tends to boost financial confidence,” said Lee McAdoo, managing director of Schwab Retirement Plan Services.
Many people also expect their 401(k) to be their primary source of retirement amid the uncertainty around when Social Security might run out of money. That said, the most recent report from the program’s trustees shows that the long-term outlook for Social Security has improved slightly, with the program paying full benefits for 11 more years.
After that, Social Security faces a significant funding shortfall. The Schwab report does show that workers within 10 years of retirement expect to rely much more on Social Security than workers who are 11 or more years from retirement.
Primary retirement income
Workers surveyed expect 43% of their retirement income to come from their 401(k), the study showed, with 34% expected to come from their own 401(k) and 9% expected to come from that of a partner. That's up from 40% in 2023. In addition, most people (92%) seem to be paying more attention to how their 401(k) is performing, while only 8% (down from 12% last year) had no idea which investments they held in their 401(k).
There is a big difference, however, between the amount that most people feel they need to retire and the average 401(k) balances held by each generation. The average 401(k) balance was $125,900, as of March 2024, according to Fidelity Investment’s “Building Financial Futures” report and reported by Kiplinger.
The average IRA balance for all ages at the end of the second quarter of 2024 was $129,200. That's up 14% from 2023, according to Fidelity Investments. IRA balances also show a wide gap between generations and what it needed to retire comfortably. When we add the total average balances for 401(k) and IRA accounts, we see that baby boomers have amassed $478,400. That's not chump change, but it is far from the goal of $1.8 million. However, changes are coming to both 410(k)s and IRAs in 2025 that may mean more money in your pocket at retirement.
Here's a summary of the average 2024 401(k) and IRA (second quarter) balances by age based on Fidelity data.
Generation | Age | Average 401(k) balance | Average IRA balance | Total 401(k) and IRA balance |
Gen Z | Born 1997-2012 / Age 12-27 | $11,300 | $6,100 | $17,400 |
Millennials | Born 1981-1996 / Age 28-43 | $59,800 | $22,600 | $82,400 |
Gen X | Born 1965-1980 / Age 44-59 | $158,500 | $94,100 | $252,600 |
Baby Boomers | Born 1946-1964 / Age 60-78 | $241,200 | $237,200 | $478,400 |
Roadblocks to saving
While inflation and stock market volatility, as well as a rise in the cost of living, continue to cause concern, other worries emerged in 2024, such as:
- Meeting monthly expenses (35%)
- Remaining current with monthly expenses (32%)
- Paying down debt (27%). That figure is up from 24% last year.
- Paying for their children's education (21%).
Challenges for 2025
In 2025, many of these same concerns persist. Although inflation has dropped considerably from a high of 7% in 2021 to 2.6% today, it still remains a concern for many people trying to get by on a fixed income.
Besides that, the prices of many household goods continue to shake up our finances. For instance, the average price of a gallon of milk is $4.04, a dozen eggs will set you back $3.37 and ground beef remains high at $5.59 a pound, according to the CBS Price Tracker.
The price of a gallon of gas, car insurance, high utilities and rent make paying down debt difficult and the state of the economy has many people wondering if buying a home, much less reaching that $1M goal, is still a part of the American dream. That's where a financial planner can help.
Investing in their future
More people (61%), up from 55% last year, said they needed the help of a professional with financial planning for the future. Most (61%) are comfortable using AI tools like ChatGPT for help, though most prefer the advice of a professional human (60%) over a computer program, the study showed.
“Both serve a purpose,” said Marci Stewart, director of client experience at Schwab Workplace Financial Services. “People start digitally because they can be anonymous, and there’s no judgment if you haven’t been doing what you think you should be doing." Stewart added, “When it comes to money, there’s still this source of trust for financial advice. They want reliable sources while they also check out social media and other tools.”
Find the full 401(k) Participant Study by Charles Schwab here.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
-
Don’t Miss Apple and Walmart Back-to-School Tax-Free Holiday Savings this Summer
Sales Tax Select states host sales tax holidays during the summer. Here’s what you can purchase.
-
The Rule of Retirement Inversion
The rule of retirement inversion says that to have a great retirement, you must ask yourself what would ruin a great retirement — and then plan to avoid it.
-
The Rule of Retirement Inversion
The rule of retirement inversion says that to have a great retirement, you must ask yourself what would ruin a great retirement — and then plan to avoid it.
-
The Five Best Side Hustles for Retirees
More older people are working in retirement to boost income and stave off boredom. These gigs and hustles make the most sense for the golden years crowd.
-
TSA’s New Family Lanes Aim to Take the Stress Out of Summer Travel
The “Families on the Fly” campaign introduces family-friendly security lanes and discounted TSA PreCheck fees — just in time for peak travel season.
-
Sibling Bonds May Wax and Wane: Here's How To Safeguard Them
Sibling Bonds May Wax and Wane: Here's How To Safeguard Them
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case Study
Susan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age
From toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your Portfolio
Alternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
Retirement in the Age of Cyber Scams: How To Protect Your Next Chapter
Retirement is meant to be a time of relaxation and living life on your terms. But for many retirees, this dream is under threat from a growing epidemic — cyber scams.