Key takeaways

• Americans put the “magic number” for retirement at over $1M – saying they’ll need a target of $1,058,547, on average.
• Over four in 10 Americans (42%) prefer that employers automatically enroll workers into a retirement savings plan like a 401(k).
• 43% of Millennials are taking a “set it and forget it” approach to retirement savings, compared with 36% of adults overall.
• Men are more likely to feel confident they’ll be able to retire on time, compared to women (47% vs 31%, respectively).

Americans say they need $1,058,547 saved up, on average, in order to retire, according to Empower research.

Over half of Americans (52%) wish they had saved up more money in their retirement accounts when they were younger, and that’s especially true for Gen Xers and Baby Boomers (both 63%).

Baby Boomers say they’re aiming for a target of less than a million at $885,160.76. But younger generations are looking higher than $1.1 million: $1,118,280 for Gen Z, $1,182,708 for Millennials, and $1,188,161 for Gen X.

Differences emerge between adults who have already started saving for retirement and those that haven’t:

Source: Empower “Magic Number” research, 2024.

Americans are also less confident in whether they’ll be able to hit those targets. The amounts for what they expect they can save for retirement are much lower than their goals:

Source: Empower “Magic Number” research, 2024.

When it comes to a retirement timeline, nearly half of U.S. men (47%) think they’ll be able to retire (or have already retired) when they want, compared to less than a third of women (31%).

Watching the savings clock

Nearly half of Gen Z (47%) has not started saving for retirement. With this group wanting to retire at age 54 – 12 years earlier than Gen Xers – it can pay to have time on their side with money moves early in their careers.

Many Millennials have recognized the power that compound interest can have on earnings potential. Over four in 10 (43%) Millennials say they’re taking a “set it and forget it” approach to saving for their retirement, compared with 36% of adults overall.

Pairing retirement with the workplace

For around a third of Millennials and Gen Xers (31% for both), a workplace 401(k) is the only way they’re saving for retirement.

People generally want their workplaces to play a more active role in their savings journey: More than 2 in 5 Americans (42%) prefer that employers automatically opt workers into a retirement savings plan like a 401(k). In 2022, just over half (64%) of companies with a 401(k) plan automatically enrolled workers.

Saving via the workplace is a two-way street – workers should also pay attention to the amounts they’re putting into 401(k) plans. Some 98% of companies with 401(k) plans offer some amount of match, according to the Plan Sponsor Council of America.

As matching funds are based on what an employee puts into the plan, it’s important to not leave money on the table: Only around a third of people (35%) are contributing enough to their 401(k) to get an employer match.

It’s wise to keep track of earlier retirement accounts. Around a third of people (32%) think having multiple retirement accounts is stressful and would prefer to put their retirement savings where they have other accounts like savings and checking (31%). A variety of 401(k) rollover options can help keep your finances in order, and consider all your options and their features and fees before moving money between accounts.

About the study

The Empower “Magic Number” study is based on online survey responses from 1,097 Americans ages 18+ fielded by YouGov from August 6-7, 2024. The survey is weighted to be nationally representative of U.S. adults (aged 18+).