Millennials’ retirement savings confidence is based on assumptions that will put a financial strain on many of them, according to a survey by Capital Group. The Wisdom of Experience Investor Survey found that although 74% of the 20-somethings to almost-40-somethings in this demographic expect to achieve their retirement goals, they’re underestimating their needs by quite a bit.
Almost half say they’ll only need $500,000 to retire comfortably, the survey found. Even with that low target, only 33% have saved more than $50,000.
Millennials, Gen X and Boomers were represented roughly equally. Millennials reported higher levels of confidence than other generations surveyed. Just 20% of Millennials expressed doubt that they would have enough for a comfortable retirement by the time they stopped working, compared to 38% of Gen X and 28% of Boomers.