Even Millionaires Are Sweating Retirement: Survey Finds 1 in 3 Believe It'll Take a Miracle

I typically enjoy waking up nice and calm while enjoying a cup of coffee. But this report jolted me awake like a cold shower. Unfortunately, it looks like the days of feeling financially secure are few and far between, even for those with more money than they know what to do with.

Apparently, a whopping 58% of high-net-worth individuals are planning to work longer than they originally anticipated. And if that's not enough to make you want to crawl back into bed, 36% of them are even worried that retirement might not even be an option.

Sheesh! 😰 But wait, it gets better. In fact, the survey found that 35% of millionaires believe that achieving financial security in their golden years is going to take a miracle. Looks like we're all in the same boat after all, eh?

And just to add insult to injury, Americans now think they need a whopping $1.25 million to retire comfortably, up 20% from the previous year. Good luck with that! So, what's a person to do? Keep reading to find out!

When $1 Million Isn't Enough: A Reality Check

Let's talk about the 4% rule. You know, that guideline that's supposed to tell you how much you can withdraw from your investments each year without winding up broke by the time you hit 95? Well, a lot of people are shocked when they find out just how much (or should we say, how little) that 4% actually is.

After all, if you've got a cool million saved up, you might think you're sitting pretty. But news flash – 4% of $1 million is only $40,000 a year. And let's be real, that's not exactly a king's ransom these days. To make matters worse, given our current economic conditions and inflation on the rise, the 4% rule might not even be realistic anymore.

Oh joy! I guess I’ll look forward to eating cat food in my twilight years. Cheaper than human-grade salmon anyways. Gotta find the silver lining people!

Preserve When Possible

The times are a-changin’ (yes I’m from the south). While Q4 of 2022 saw a rise in 401(k) balances, the average 401(k) balance took a pretty brutal 23% nosedive from where it was just a year ago. Ouch! 😬 And even if you're one of the lucky ones sitting on a cool million bucks, that's no guarantee that you're even sitting that pretty.

After all, inflation and market volatility are chop-blocking even the sturdiest of financial plans. In other words, those two play dirty. So, what's a person to do?

Well, luckily there's no shortage of online calculators out there to help you determine your comfortable retirement figure. Or, if you're feeling really fancy, you can always sit down with a financial advisor who can help you navigate the rough waters.

Either way, it's important to focus on preservation. Because at the end of the day, no matter how much money you have, nobody wants to wind up destitute in their golden years.

Salt’s Takeaways

Well, folks, there you have it. Turns out, protecting your wealth isn't as easy as winning the lottery or striking oil in your backyard. But hey, that doesn't mean you're out of luck. By staying vigilant, doing your research, and seeking the advice of experts, you can be sure that your financial future is as secure as possible. And even if the market takes a nosedive, you'll be ready to weather the storm.

So, go forth and conquer! After all, you never know when you might need to break out the old piggy bank. Hey, you’ll be one step ahead of me – I already tapped ole’ piggy for beer money when I turned 21.