35% of millionaires say they don’t have enough money for retirement

The cool $1 million is no longer what it used to be.

According to the latest data, there are more millionaires in the US and worldwide than ever before, with almost 24.5 million millionaires in the country as of 2022. Global Wealth Report from Credit Suisse Research Institute. However, having seven figures in the bank provides less security than before in the face of inflation and wild market fluctuations.

“This badge is easier to get, but it may not deliver what we expect,” said Dave Goodsell, executive director of the Natixis Center for Investor Insight.

Fewer Americans these days, including millionaires, are confident about their financial situation.

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Even among the wealthy, 58% agree they will have to keep working longer, and 36% fear that retirement might not even be an option, according to the latest data from Natixis Investment Managers.

In fact, 35% of millionaires said their ability to be financially secure in retirement would “do a miracle,” a survey of over 8,500 individual investors found.

Americans are now expecting to need $1.25 million to comfortably retire as higher costs fall on household budgets, a separate study by Northwestern Mutual found.

People are surprised when they do the math and realize that 4% of $1 million is only $40,000 a year.

Dave Goodsell

Executive Director of Natixis Center for Investor Insight

“A million might seem like a lot, but a lot of people are surprised when they do the math and realize that 4% of $1 million is just $40,000 a year,” Goodsell said. “It’s usually a little less than what these people are probably used to living in.”

The 4% rule is a popular benchmark for retirees to determine how much money they can live on each year without fear of running out later.

However, given current market expectations, the 4% rule “might not be feasible,” researchers at Morningstar wrote in a recent report. paper.

Rules of thumb for retirement are ‘obsolete’

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