Latest news with #2025Planning&ProgressStudy
Yahoo
4 days ago
- Business
- Yahoo
Can You Guess What Americans Think They Need To Retire Comfortably? Hint: The 'Magic Number' Just Dropped From Last Year
If you've ever assumed retirement meant having a seven-figure nest egg, you're in good company — and maybe a little stressed. For years, Americans have treated the $1 million mark as the gold standard for retiring comfortably. Anything less? Cue the panic attacks. But according to Northwestern Mutual's just-released 2025 Planning & Progress Study, the average American now believes they need $1.26 million tucked away to retire in peace. That's actually down from $1.46 million last year. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Sure, the so-called magic number dropped by $200,000, but don't pop the champagne just yet. According to the same study, most Americans are still wildly unprepared. More than half – 51% – say it's somewhat or very likely they'll outlive their savings. Only 16% feel confident that outliving their savings is "very unlikely." So if your retirement plan is "hope for the best," you're not alone. The 'magic number' to retire comfortably may be down this year, but it's still far beyond what many people actually have. And the gap isn't just wide — it's a canyon. Vanguard's 2024 report puts the average 401(k) balance across all age groups at just $134,128. That's barely a tenth of what Americans say they'll need to retire comfortably. Trending: Maximize saving for your retirement and cut down on taxes: . And what's behind the drop? Inflation is still top of mind, but it's cooled off—dropping from around 6% in 2023 to about 3% in 2024. That doesn't mean prices are falling; it just means they're not rising quite as fast. Groceries still feel like a splurge and rent still makes you cry, but apparently, that slight dip was enough for Americans to shave down their expectations. Either way, the new target still feels like a stretch. One in four Americans has just a single year of income saved. Among Gen X'ers, 52% have saved up to three times their annual income, but 54% don't think they'll be financially ready to retire when the time comes. Which raises a fair question—not from a study or expert, just plain observation: Are Americans adjusting the number because they think they can genuinely live on less, or have they just accepted that $1.26 million sounds more reachable than $1.46 million? Maybe this is optimism. Maybe it's financial you're wondering how anyone hits that $1.26 million target: you either start young or start wealthy. To get there by age 65, a 20-year-old would need to sock away $330 a month at a 7% return. Wait until you're 50? That jumps to a casual $3,958 per month. Yes, the goal dipped—but the struggle to reach it hasn't. Americans may be adjusting expectations, but most still have a long way to go before retirement feels anything close to "comfortable." Read Next: Many are using retirement income calculators to check if they're on pace — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Can You Guess What Americans Think They Need To Retire Comfortably? Hint: The 'Magic Number' Just Dropped From Last Year originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
13-05-2025
- Business
- Yahoo
Want $1 Million in Retirement? Invest $100,000 in These 3 Stocks and Wait a Decade.
IonQ could profit from the rapid growth of the quantum computing market. Wolfspeed's business could recover if the SiC market warms up again. Lumen's new artificial intelligence (AI) infrastructure contracts could revive the aging telco company. 10 stocks we like better than IonQ › Most Americans believe they need at least $1.26 million to retire comfortably, according to Northwestern Mutual's 2025 Planning & Progress Study. Unfortunately, only 3.2% of American retirees have actually saved up more than $1 million across their retirement accounts, according to a recent Federal Reserve Survey of Consumer Finances. That troubling gap indicates that many Americans didn't invest enough of their paychecks when they were younger. They also might have stuck with more conservative fixed-income investments -- like CDs and T-bills -- which trailed inflation and the broader markets. But if you have $100,000 in the bank and won't retire for at least another decade, you might still hit the $1 million mark with these three tech stocks, which could deliver 10-bagger gains in the next 10 years: IonQ (NYSE: IONQ), Wolfspeed (NYSE: WOLF), and Lumen Technologies (NYSE: LUMN). IonQ provides quantum computing systems and cloud-based services. Unlike traditional computers, which store zeros and ones separately in binary bits, quantum computers store them simultaneously in qubits. That key difference allows them to process massive amounts of data more quickly, but those systems are also much bigger and pricier than traditional servers. IonQ measures its quantum computing power in algorithmic qubits (AQ). Its flagship Forte system surpassed 36 AQ at the end of 2024, and it expects its new Tempo system to achieve 64 AQ when it launches later this year. It plans to achieve 256 AQ in 2026, 384 AQ in 2027, and 1,024 AQ in 2028. It expects that acceleration to be driven by its "trapped ion" technology, which aims to shrink the width of a quantum processing unit (QPU) from a few feet to a few inches. That miniaturization process could allow IonQ to expand far beyond its current niche market of government agencies and research institutions. It could also be widely used for mainstream cloud and artificial intelligence (AI) applications. From 2024 to 2027, analysts expect its revenue to grow at a compound annual growth rate (CAGR) of 88% from $43 million to $286 million. It certainly isn't cheap at 27 times its 2027 sales, but it should grow even bigger by 2035 as the quantum market expands. Wolfspeed is one of the world's largest producers of silicon carbide (SiC) chips, which can operate at higher voltages, temperatures, and frequencies than traditional silicon chips. That makes them well-suited for short-length LEDs, lasers, 5G base stations, military radars, electric vehicles, solar panels, wind turbine systems, and power supply units (PSUs) for AI servers. However, Wolfspeed struggled over the past two years as the EV market cooled off, companies prioritized their purchases of AI-oriented GPUs and accelerators over SiC chips, and China blocked its exports of gallium and germanium -- which are both required to manufacture SiC chips. At the same time, Wolfspeed's expenses surged as it expanded its U.S. manufacturing plants. That mix of slowing growth and rising costs drove away its investors. But after plummeting nearly 98% from its all-time high, Wolfspeed's stock now trades at just 0.7 times its projected sales for fiscal 2025 (which ends this June). That dirt-cheap valuation could set it up for an incredible comeback over the next decade if the SiC market warms up again. From fiscal 2025 to fiscal 2027, analysts still expect its revenue to increase at a CAGR of 12% as it narrows its losses -- so accumulating it as the bulls look the other way might be a millionaire-making move. Lumen, the telecom company formerly known as CenturyLink, doubled down on expanding its wireline networks instead of entering the crowded wireless market. It also expanded its fiber networks and rolled out more cloud, security, and collaboration tools for its business customers. That strategy backfired when the ongoing decline of its business wireline segment offset the stronger growth of its consumer-facing fiber business. Its annual revenue declined for six consecutive years, it racked up losses for three straight years, and it eliminated its dividend in 2022. That's why its stock dropped below $1 last June. But today, Lumen's stock trades at about $4. It recovered after Microsoft and several other cloud and AI giants hired the company to upgrade their data centers to support new AI applications. At the end of 2024, it had $8.5 billion in active AI infrastructure contracts with those clients and was in active discussions to secure an additional $7 billion in contracts. Those deals could revive its business wireline segment and transform it from a dusty old telco play into an AI play. Analysts still expect Lumen's annual revenue to decline over the next few years, but those new AI contracts could breathe fresh life into its business by 2035. If that happens, it could be a bargain right now at 0.4 times this year's sales. Considering that AT&T trades at 1.6 times this year's sales, Lumen could be a potential multibagger if it gets its act together. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Wolfspeed. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Want $1 Million in Retirement? Invest $100,000 in These 3 Stocks and Wait a Decade. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Business
- Yahoo
Americans say $1.26M is the 'magic number' to retire comfortably, predictably it's higher in California
The Brief Americans put the "magic number" to retire comfortably at $1.26M, according to a new study. Not surprisingly, the figure is higher in California. Confidence over retirement savings differs between generations. OAKLAND, Calif. - New research shows U.S. adults believe the "magic number" they need to retire comfortably sits at $1.26 million, with more than half of those surveyed saying they will likely outlive their savings. The findings by financial services firm Northwestern Mutual show that the target number has come down since last year, though it still remains far higher than what many people have actually saved for their golden years. Last year, that figure stood at $1.46 million. What they're saying "One explanation for the new number could be inflation – while still people's #1 concern – isn't as elevated as it was in recent years," the financial company explained, adding," Inflation is often described as 'sticky' because it can take a long time for people's attitudes about it to change." SEE ALSO:How much is $100K salary worth in San Francisco, Oakland? Northwest Mutual's 2025 Planning & Progress Study was released earlier this month, with the survey being conducted back in January before Donald Trump took office. Researchers said the findings also show the level of concern over current retirement savings has skyrocketed. "The vast majority are living with financial anxiety," Northwestern Mutual said. Fueling that anxiety are worries about Social Security and inflation. Overall, the survey found that among those Americans who have started retirement savings, 25% said they have just one year or less of their current annual income put aside. Northwestern Mutual's financial experts stressed that it is important to consider that one size does not fit all when it comes to retirement planning, which should be highly personalized. "Everyone deserves their own 'magic number' that considers where they will live, what lifestyle they will have, their sources of income, and more," said Northwestern Mutual's chief field officer, John Roberts. When looking at the "where people live" factor, figures show that, perhaps predictably, those in the Golden State have a higher "magic number." However, perhaps surprisingly, it's not that much higher than the national figure. Northwestern Mutual said its findings show that California's "magic number" for retiring comfortably is only about $200K more, at $1.47 million. Dig deeper A recent study by personal finance website GoBankingRates put the California number far higher, estimating 20-years of comfortable retirement would cost more than $2.3 million. GoBankingRates put the annual spending during retirement at about $162K. Its researchers also broke down how much monthly savings would be required over 20 years to reach that goal and cover costs through age 85: Starting at age 20, you would need to save $4,334. Starting at age 30, that figure goes up to $5,573 a month. In the quest to retire comfortably, Northwestern Mutual said generally, people should aim to replace roughly 80% of their pre-retirement income. Financial experts also note the importance of weighing in factors like when people want to retire, where they'll live, and what kind of lifestyle they want to maintain. With many Gen X'ers— those born between 1965 and 1980, approaching their retirement years, Northwestern Mutual found a majority in that age group reported that they will not be prepared when the time comes. According to the survey, 52% of Gen Xers said they have, at most, three times their current annual income saved. That figure is higher among Millennials, defined as the population born between 1981 and 1996, and the younger Gen Z generation— those born from 1995 to 2012. The survey found that Gen Z expressed the most confidence that they'll be financially prepared for retirement. "Younger Americans have ambitious financial goals – and they're taking action to reach them," Roberts said. "If this generation determines how much they need to save, continues to generate wealth, and protects what they've already built, they could be in a strong position to achieve financial security."
Int'l Business Times
29-04-2025
- Business
- Int'l Business Times
Want $1 Million In Retirement? What Americans Need To Save Each Month By State
The 2025 Planning & Progress Study from Northwestern Mutual revealed that Americans think they require £939,462 ($1.26 million) to comfortably retire. To reach that goal by 65, the study estimated that one must save £246 ($330) monthly if they begin at 20. The estimated monthly savings more than double every decade you delay. For instance, someone starting retirement savings at 40 would have to set aside £1,153 ($1,547) monthly to reach that magic number. However, these average estimates might vary significantly across US states, primarily due to living costs. A Gold IRA Custodians study showed that a Hawaii resident needs to save £330 ($443.06) monthly starting at 25 to amass £745,605 ($1 million) by 66, compared with £222 ($298.45) monthly for a West Virginia resident – a nearly £111 ($150) per month difference. 'The path to a million-dollar retirement isn't one-size-fits-all,' says Tim Schmidt, founder of Gold IRA Custodians. 'Where you live plays a huge role in how much you need to set aside each month. What might seem like an impossible goal in Hawaii could be much more achievable in the Midwest.' 'Our findings highlight the critical importance of two factors in retirement planning: location and timing. Where you live significantly impacts how much you need to save, with a nearly $150 monthly difference between the most and least expensive states. But even more vital is when you start saving,' he added. The study assumed a 7% inflation-adjusted annual return on investments, state-wise inflation levels and cost of living index based on post-tax estimates. Hawaii has the highest cost of living index at 125.25, meaning it is over 25% more expensive than the national average, which can be attributed to its isolated location and reliance on imports. 'Almost everything costs more there, from housing to groceries, which translates directly into a higher savings requirement to maintain comfortable living standards in retirement,' Schmidt said. California, Massachusetts Come Second to Hawaii California residents need to save £326 ($438.49) monthly to amass a million dollars by age 66. The Golden State's cost of living is 123.96, and the inflation rate is similar to Hawaii's at 3.28%. However, California's cost of living varies within the state, with lower costs in inland areas compared with higher prices in coastal regions. Meanwhile, Massachusetts residents have to save £324 ($435.20) monthly despite a lower cost of living index than California at 123.03. This is because of the high inflation rate of 3.77%.'The state combines high housing costs with above-average expenses for healthcare and education, creating a perfect storm for retirement savers,' Schmidt said. These top three expensive states are followed by New York, Washington, New Jersey, Maryland, Colorado, and New Hampshire. West Virginia Happens to be the Most Affordable Retirement Destination The Gold IRA Custodians study found that West Virginia residents can save £222 ($298.45) monthly to become a millionaire by 66, given the lowest cost of living index of 84.37, implying that it is 16% cheaper than the national average. The Mountain State offers relatively lower housing costs, and daily expenses are more affordable. However, the state faces several economic roadblocks. Arkansas follows West Virginia in terms of the lowest monthly savings required to secure retirement goals, with a cost-of-living index of 84.88. In Arkansas, residents can save £223 ($300.25) monthly in investments to grow their retirement corpus to $1 million by age 66. With a low inflation rate of 2.24% and affordable housing and transportation costs, the state offers a feasible gateway to retirement wealth. The third US state requiring the least monthly savings is Kentucky with an 86.35 cost of living index. Despite one of the highest inflation rates at 4.82%, residents benefit from considerably lower baseline costs. People living in this state are required to save £227 ($305.45) monthly. These top three affordable states are followed by Oklahoma, South Dakota, North Dakota, Alabama, Louisiana, Ohio, and Mississippi. Starting Early is Key to Keeping Monthly Retirement Contributions Manageable Starting to save at 25 in Hawaii with $443.06 monthly contributions towards retirement funds is more manageable than waiting till 40 when you have to save £870 ($1,167.25) monthly to reach the same retirement goal by 66. 'The power of compound interest is dramatic,' according to Schmidt. 'The 15-year difference between starting at 25 versus 40 more than doubles the monthly amount needed, regardless of which state you live in.' For those who are behind on retirement savings, several strategies can help, such as maxing out contributions to 401(k) and IRA accounts and diversifying their retirement portfolio with tangible assets like gold to hedge against inflation and market upheavals. One can also relocate to a more affordable US state in retirement to prolong their life savings by years. 'Remember that even if you're starting later, consistent saving habits and smart investment choices can still put a comfortable retirement within reach. The key is to begin today, regardless of where you are in your journey,' Schmidt concluded. Originally published on IBTimes UK
San Francisco Chronicle
27-04-2025
- Business
- San Francisco Chronicle
This is the magic number for retirement in California — and how it differs from everywhere else
Since last year, most Americans have lowered their expectation for the retirement 'magic number' — the amount of money they'll need to live on after they stop working, according to the latest survey from financial services company Northwestern Mutual. But in California, it's a different story. Nationwide, the average respondent to the Northwestern Mutual 2025 Planning & Progress Study said they thought they'd need $1.26 million to retire comfortably at age 65. That's down $200,000 from what respondents predicted in 2024, when it was an all-time high of $1.46 million. What accounts for the diminished expectation? Inflation has cooled off after it spiked starting the year after onset of the COVID-19 pandemic, said Ashley Russo, a wealth management adviser for Northwestern Mutual. While still elevated — it was at 2.4% in March 2024, a bit higher than the Federal Reserve's 2% target — it's down from its peak of 9.1% in June 2022. An analysis from two Stanford economists found that while inflation unsurprisingly makes people feel negative about the economy, they do get used to those higher prices over time as inflation declines — typically around 18 to 24 months. We're right within that window now, since inflation entered the more palatable 3% range in June 2023. It's worth noting that the survey was conducted in January of this year just before President Donald Trump's inauguration — so this economic optimism predates the current ever-shifting tariff situation and resulting market turmoil. But retiring in California is different — and this year's survey found Golden State residents' retirement outlook had not gotten any rosier. In 2024, an analysis performed by Northwestern Mutual for the Chronicle found the average Californian who responded to the survey said they'd need $1.47 million to retire comfortably. That was only slightly more than the $1.46 million nationwide average. Northwestern Mutual performed the same analysis this year, calculating the California-specific number by analyzing respondents from state residents and weighting it with data from the Harris Poll to account for the proportion of the Golden State's population they represented. • Got money questions? Here's how to send them to our California budgeting advice columnist Respondents were told to factor in all sources including 401(k)s, IRAs, pensions and bank accounts — but assets like real estate were excluded. The 'magic number' Californians believe they'll need to retire as of 2025: $1.47 million. That's the same number as last year — but it's $210,000 more than this year's national figure, suggesting Californians may not be feeling as much relief from inflation as the average American and remain cognizant of the high cost of living here. 'Californians know they need to save more to maintain their lifestyle in a more expensive place,' Russo said. It's not news that California is an expensive place to live. And though many save for retirement in tax-deferred accounts like 401(k)s anticipating a lower income tax rate in their golden years, Russo said required minimum distributions and a high cost of living could push your income into a higher bracket than you might have anticipated. 'People assume they drop into super-low brackets, but that's not always the case,' she said. Other cost-of-living factors to account for include housing, homeowners insurance, gas, utilities and day-to-day staples like groceries. Russo said people should take a hard look at their working-age lifestyle and expenses and figure out what their budget is going to look like when they retire so they know what their personal 'magic number' will be. Northwestern Mutual, which offers financial planning and investment services as well as various types of insurance products, has a retirement calculator that can help you get started. Other interesting findings from the study: Half of Americans think they'll outlive their savings Though respondents guessed they'd need $1.26 million to retire comfortably, they didn't all believe they'd get there. Just over half — 51% — said it was likely they'd outlive their savings. Young people say they started saving earlier and plan to retire earlier Broken out by generation, Gen X and boomer respondents said they started saving for retirement at, respectively, 33 and 37, and planned to retire at 67 and 72. Millennials said they started to fund their retirements at 29 and planned to retire at 64. Gen Z started stashing money away at age 24 and plan to retire at an average age of 61. Of the generations polled, Gen Z was the most likely to say they'd be able to comfortably retire. Gen X was the only generation where the majority of respondents felt they wouldn't be financially ready for retirement when the time came. People are concerned about inflation and Social Security Though it seems consumer sentiment has broadly adjusted to the peaks of inflation in recent years, respondents indicated they were worried about how they'd be impacted by inflation once they were living off their retirement savings. One-third of respondents said one of their biggest concerns was whether Social Security would still exist by the time they qualified for it. Gen X was the most worried, with 47% considering it among their chief concerns. 'It's fair to be wary' about the future of Social Security, Russo said. 'It's a broken system.' When Northwestern Mutual advisers run calculations for younger people, she said, they don't take the current projected Social Security benefits into account. Instead, she said she cuts that number in half and grow it at a lower inflation rate over the course of the projection. A lot of people plan to work during retirement Less than a third of boomers (30%) said they were planning to continue working during their retirement years. But 48% of Gen X, 45% of Millennials and 38% of Gen Z respondents said they expected to be working during what are traditionally thought of as the 'not working' years. Of those who said they'd work in retirement, half said it was to continue feeling stimulated or useful, and 48% said it was to pay for living expenses in retirement.
