According to a Schwab Retirement Plan Services poll, the average American expects to retire comfortably with almost $1.9 million. However, the Federal Reserve's 2022 Survey of Consumer Finances reports that the average household savings for individuals aged 65 to 74 is only $609,230. This gap inevitably affects retirement plans, as retirees must align their savings with their desired lifestyle.
Personal finance website GoBankingRates notes that retirees in expensive states like Hawaii or New York will need over $1 million to cover living expenses for 15 years. In contrast, retirees in the Midwest or South, where living costs are lower, will find their money goes much further.
