35% of millionaires say it’s ‘going to take a miracle’ to be ready for retirement, report finds

A cool $1 million isn’t what it used to be.

As per the latest, there are more millionaires in the US and globally than ever before with around 24.5 million millionaires nationwide by 2022. Global Wealth Report from Credit Suisse Research Institute, Still, having seven digits in the bank offers less security than it used to inflation and highly market swings,

“It’s easy to get the mark, but it may not deliver what we expect,” said Dave Goodsell, executive director of the Netixis Center for Investor Insight.

These days, very few Americans, including millionaires, feel confident about their financial standing.

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According to the latest data from Natixis Investment Managers, even among high net worth individuals, 58% said they accept they will have to keep working longer and 36% worry retirement may not even be an option .

In fact, 35% of millionaires said their ability to be financially secure in retirement “is going to do wonders,” a survey of more than 8,500 individual investors found.

Americans now expect they’ll need $1.25 million Higher costs strain as household budgets ease retirees, a separate study from Northwestern Mutual found — a 20% jump from the $1.05 million respondents cited last year.

People are surprised when they do the math and realize that 4% of $1 million is only $40,000 annually.

Dave Goodsell

Executive Director, Netixis Center for Investor Insight

Goodsell said, “A million may sound like a lot, but many people are surprised when they do the math and realize that 4% of $1 million is only $40,000 annually.” “This is generally much lower than what these individuals are likely to live on.”

4% rule It’s a popular guideline for retirees to determine how much money they can live on each year without fear of running out later.

However, researchers at Morningstar recently wrote that, given current market expectations, the 4% rule “may no longer be feasible”. paper,

Retirement rules are ‘outdated’

“A lot of the rules of thumb we’ve been using are out of date,” Goodsell said.

At the same time, the average 401(k) balance is now down 23% up $97,200 from a year earlier, according to Fidelity Investments, the nation’s largest provider of 401(k) plans.

Goodsell said, “You might have had that $1 million but you’ve taken a 20% hit on that.” “On top of that, the prices are high.”

another Survey from Bankrate.com It also found that 55% of working Americans now feel they are behind in their retirement savings amid persistently high inflation and market volatility.

“People need to look at how much they have and take the time to do the math about how long it will last,” Goodsell said. “The name of the game is protection.”

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