Will future generations of Americans have enough savings to live comfortably in retirement? The answer to this question has become unclear. Inflation has raged in recent years, pushing up the cost of living and forcing Americans to spend more and save less, just to cover their daily and annual expenses.
A recent BlackRock survey, discussed by the firm's CEO Larry Fink in his annual letter to investors, highlights this concern. Here's how much Americans now think they need to retire. The answer will absolutely shock you.
Americans say they need a lot to retire but have little in savings
The BlackRock survey asked 1,000 registered voters how much they think they need to retire comfortably, and the average response was a staggering $2.1 million. There's often been a large disparity between how much experts think someone needs to retire and how much Americans have saved, and that's nothing new, but the size of the number seemed to catch Fink by surprise.
"That's a lot. More than I was expecting," Fink wrote in his letter, adding that "almost no one [of the respondents questioned] is close" to having saved this much for retirement.
Image source: Getty Images.
This number is also even more than the experts have suggested saving for retirement. For instance, Fidelity's retirement advice suggests saving 10 times one's annual salary by age 67. Assuming someone earns $100,000 to $150,000 per year, which is a strong salary, Fidelity would recommend saving $1 million to $1.5 million for retirement.
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Key Data Points
About 62% of those surveyed by BlackRock said they had less than $150,000 saved for retirement, only about 7% of what they think they need. Furthermore, a Vanguard report from 2025 shows that Americans aged 65 or older had an average 401(k) balance of over $299,000 and a median account balance of over $95,000.
It's likely that the average balance is skewed by a few accounts with much larger balances than the rest.
Fink has expressed concern about Americans not saving enough for retirement for many years. This is especially an issue as life expectancy in the country rises, putting pressure on programs like Social Security and the healthcare system, because older people tend to have more healthcare issues.
Fink wrote:
The problem will only get harder and nastier as the oldest Gen-Xers start to retire. They're the first generation primarily dependent on 401(k)s. And the 401(k) trend is growing with Millennials and Gen Z.
Fink is also worried that Americans are too often left on their own to plan for retirement. This can be difficult because of the many variables involved.
The problem is real, although there are things to consider
BlackRock's survey brings up real problems and questions that need answering. Fink's concerns are also valid.
Due to the high cost of living and housing, Americans are struggling to save and afford housing, which is a key way they have historically built wealth. Renting is often much easier than buying and maintaining a home, but the money can't be recouped at the end of the day.
However, there are some things to consider about this survey. For one, it asked Americans how much they need to live comfortably. It's possible that respondents, overwhelmed by the current cost of living, threw out numbers that may actually be larger than what's actually necessary to retire.
Everyone also has different expectations for living in retirement. Many aspire to travel or buy vacation homes, but the core costs of maintaining a standard of living may not actually reach $2 million.
We also don't know where the respondents are from. The cost of living in major cities can be much higher than in other parts of the country, and there are places in the U.S. that are more affordable.
Ultimately, the survey demonstrates how difficult it has become to save and how worried Americans are about the cost of living in retirement. There's no easy solution, but it's also not something that can be ignored.
