Inflation has definitely affected the economy badly. Gen Z and millennials who are looking ahead to saving for their retirement need to rethink and restructure their finances. Earlier reports from 2022 pointed out that they need at least $3 million to have a comfortable retirement. However, another survey by Bloomberg MLIV Pulse has disclosed that Gen Z and millennials need anywhere between $3 million and $5 million to have a comfortable retirement.
Is the $1 million retirement dream over?
The typical retirement savings target has long been $1 million. However, the rise in inflation has led to a three- to five-fold increase in the recommended retirement savings target for Gen Z and millennials. The study by Bloomberg found that more than 7 in 10 investors believe comfortable retirement savings should be between $3 million and $5 million.
David Goodsell, executive director of the Natixis Center for Investor Insight, stated, One of the key challenges we see is managing toward an unknown. We don’t know what prices will be in the future, we don’t know how long we’ll live, and all of that factors into anxiety,“
The study surveyed Bloomberg customers, who tend to have careers in finance and relatively high incomes compared to average workers. With reports surfacing that the US government debt will rise by $5.2 billion every day and 61% of Americans living paycheck to paycheck, there also arises the necessity to ramp up savings to enjoy a peaceful retirement life.