Most Americans Clueless on How Much to Save for Retirement

A whopping 61% of Americans don’t know how much they’ll need to save to get them through retirement—but among the ones who do, the median estimate is $650,000.

And numerous studies have shown that that’s in an alternate universe from the amount most people have socked away.

A new study from Bankrate.com finds that 19 million Americans say they plan never to retire, and it’s not a single age group saying that; 9% of millennials (age 18–37) and 9% of boomers (age 54–72) all envision a future of working ad infinitem.

Millennials are the group most in a quandary over how much they’ll need, with 69% admitting to such ignorance. But they’re far from the only ones, and they’re not that much greater in numbers than older generations; 56% of GenXers (ages 38–53), 58 percent of boomers and 59% of those aged 73+ have the same problem.

Even among those who have given estimating a shot, their conclusions are all over the financial map, with 7 percent saying $250,000–$500,000 and 8 percent saying either $250,000 or less, $500,000–$1 million or over $1 million, respectively.

GenXers are the most likely to weigh in at over $1 million, with those actively working three times more likely to say so than unemployed respondents.

Their estimates vary, too, depending on the part of the country in which they live: those in the Northeast (12%) and West (11%) are about twice as likely to say $1 million, compared with those who live in the Midwest (5 percent) and South (6%).

More than half of Americans have tried to get some advice, although their sources also vary widely. And whom they ask depends a great deal on their age group, with 21% asking a family member or friend—although 30% of millennials chose that as their avenue of advice.

Twenty-six percent went to a personal financial advisor, with boomers way more likely to do so at 37%, while 11% used an online retirement calculator, 10% sought out a bank or financial institution, 8% used expert commentary or articles and fewer than 1% used a robo-advisor.

And marital status plays a big role in their choices; people who are married or living with a partner are twice as likely to consult a personal financial advisor or bank/financial institution than those who are single or not living with a partner.

Asked how much of their retirement will be funded by Social Security, a shocking 61% said little to none.

Twenty percent said about half, but 17% said that most to all their retirement money would come from Social Security.

However, Bankrate analyst Taylor Tepper is cited in the report saying, “Social Security will almost certainly contribute a sizable portion of your retirement income, even for millennials, despite erroneous declarations that the pension program will soon go bankrupt.”