While 49% of workers believe they can achieve their retirement objectives, 35% admit they will require more than $1 million to live comfortably in retirement.

• A recent Bankrate report indicates that over one-third of workers believe they will require more than $1 million to achieve a comfortable retirement.
• A CNBC survey found that 4 out of 10 workers are not adequately planning for retirement and saving, mainly because of debt, low income, or starting late.
• Mark Hamrick, Bankrate's senior economic analyst, states that workers can still catch up despite the news.

By some measures, retirement savers, overall, are doing well.

In the second quarter of 2024, 401(k) and individual retirement account balances reached their third-highest averages on record, thanks to improved savings habits and favorable market conditions, according to Fidelity Investments, the largest provider of 401(k) savings plans in the US.

The number of 401(k) millionaires reached a new record high.

The 401(k) contribution rate, including employer and employee contributions, is currently 14.2%, which is slightly below Fidelity's recommended savings rate of 15%.

Despite what savers believe they should have saved, there remains a difference between their actual savings and their desired savings after retirement.

A recent report by Bankrate.com indicates that 35% of Americans believe they will require more than $1 million to achieve a comfortable retirement, while 10% think they will need between $750,001 and $1 million.

According to a report by Bankrate, although most workers have a specific retirement goal in mind, only 49% believe it is likely they will be able to meet their target and 48% say it is unlikely they will save the amount they need. Bankrate polled 2,445 adults in mid-August.

40% of workers are behind on retirement planning

A recent CNBC survey of over 6,600 U.S. adults in early August found that 40% are behind on retirement planning and savings, mainly because of debt, low income, or starting late.

Baby boomers closer to retirement age are more likely to feel regret about not saving for retirement early enough, according to a CNBC survey. Specifically, 37% of baby boomers between the ages of 60 and 78 reported feeling behind, compared to 26% of Gen Xers, 13% of millennials, and only 5% of Gen Zers over the age of 18.

According to CNBC, Bryn Mawr Capital Management's director of retirement plan services, Jacqueline Reeves, stated that there are numerous individuals, both young and experienced, who are not saving enough for a comfortable and secure retirement.

According to a recent report by Bankrate, not saving for retirement early enough is the biggest financial regret for 22% of Americans.

Reeves stated that even if you accomplish less at 30, you will have more at 60 than if you had done more at 50.

The retirement savings gap

As Americans near retirement age, a retirement savings shortfall is a significant concern, according to other reports.

According to an August LiveCareer survey, 82% of workers have considered delaying their retirement due to financial reasons, while 92% fear they may need to work longer than originally planned.

According to a study by Pew Charitable Trusts from January, roughly half of Americans worry about running out of money after retiring, while 70% of retirees wish they had started saving earlier.

A recent report by Transamerica Center for Retirement Studies found that only 1 in 5 middle-class households are very confident they will be able to fully retire with a comfortable lifestyle. The report defined the middle class as those with an annual household income between $50,000 and $199,999.

"Catherine Collinson, CEO and president of Transamerica Institute, stated that America's middle class is facing challenges in the post-pandemic economy and high inflation rates while prioritizing their health and financial well-being. Despite this, many are at risk of not achieving a financially secure retirement."

How to overcome a savings shortfall

Mark Hamrick, Bankrate's senior economic analyst, explained that many workers who feel they are behind on their savings are still years, if not decades, away from retirement.

"Retirement savings can be achieved with information, focus, and hard work, according to Hamrick."

Experts suggest that in addition to contributing to a retirement savings plan, individuals should consider enrolling in an auto-escalation feature if their company offers it, which will gradually increase their savings rate by 1% or 2% each year until a maximum amount is reached.

Savers closer to retirement can even turbocharge their nest egg.

In 2024, savers aged 50 and above can contribute an additional $7,500 to their 401(k) plans and other retirement plans, beyond the current year's $23,000 employee deferral limit. Additionally, they can make catch-up contributions of $1,000 to their IRAs, which is on top of the $7,000 limit for 2024.

Experts suggest consulting with a financial advisor to establish a long-term plan, and the National Foundation for Credit Counseling offers free assistance.