Despite lingering concerns about inflation, Americans’ expectations for retirement savings have remained steady at $1.8 million, according to Charles Schwab’s annual survey. The survey, conducted between April 17 and May 3, 2024, polled 1,000 participants in 401(k) plans.
Inflation remains the top concern for 58% of respondents, though this is down from 62% last year. Stock market volatility is the next biggest worry at 36%, a decrease from 42% in 2023. “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.
The survey also revealed that 43% of workers now believe they are very likely to achieve their retirement savings goals, up from 37% in 2023. However, other financial challenges persist: 35% struggle with monthly expenses, and 27% are burdened by credit card debt, up from 24% last year.
The average expected retirement age has dipped from 66 to 65, with Gen Z anticipating retiring the earliest at age 60. More Americans are actively monitoring their 401(k)s, with 92% aware of their account performance, and 61% seeking professional financial advice. Additionally, 61% are open to using AI tools like ChatGPT for financial planning, up from 49% last year.
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