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Saving for retirement is one thing, achieving your goals in your golden years is another.
That’s where the worry creeps in.
Among older workers, only 34% of Baby Boomers and 26% of Generation X believe they are on track with their retirement savings, according to a recent study Bank interest rate survey.
Younger workers are more likely to say they are where they need to be. In fact, 45% of Gen Z and Millennial workers are somewhat optimistic.
And yet, Generation Z workers are the largest group of non-savers, Bankrate found.
According to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) plans, the average 401(k) balance among baby boomers is $220,900.
Members of Generation Z The average balance is $8,100.
“There is often a disconnect between what people think they need for retirement and the amount they put aside,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.
“There is a conundrum between expectations and reality,” he said.
How much do Americans think they need to retire?
Overall, Americans believe they will have demand $1.25 million for a comfortable retirement, a separate study from Northwestern Mutual found.
But what $1 million means to one household versus another depends on cost of living, risk tolerance and other factors such as Social Security benefits and home ownership, said Boneparth, who is also a member of the CNBC Advisor Council.
According to another report from Country Financial, those who are on track to achieve their retirement goals are most likely to work with a financial advisor and have a diversified asset mix, including stocks and bonds.
They are significantly more likely to have at least $100,000 in a retirement account, according to the report.
How to find out your pension number
There are a few simple rules of thumb, such as: Save 10 times your income by retirement age and the so-called 4% retirement income rule, which states that retirees should be able to safely withdraw 4% of their investments (adjusted for inflation) each year in retirement.
However, these policies have their flaws, according to Chelsie Moore, head of wealth management at Country Financial.
To get an accurate picture of where you stand, “it’s important to work with a financial advisor to discuss your individual situation and goals and determine the amount you need to save,” Moore said.
“In a world where retirement calculators abound, we often take an overly broad approach,” Boneparth added.