That’s the share of people with 401(k)s who now say it’s “very likely” they will reach their retirement savings goals, up from 37% roughly a year ago, survey findings commissioned by brokerage firm Charles Schwab showed Wednesday.
And that’s pretty good, because on average, survey respondents predicted they'll need an impressive $1.9 million in their golden years.
After a pandemic year that saw millions of people lose their jobs as businesses closed down to slow the spread of COVID-19, an increasing number of Schwab’s survey participants emerged with more confidence in their future. Their confidence now may be bolstered by the saving spree that began as the country faced economic uncertainty during the pandemic: Household savings soared to a record high of 33.7% in April 2020, helped by stimulus checks and extra unemployment benefits, and it remains high at 14%, or about twice what it was before the pandemic. So savers may be enjoying a financial cushion right now.
Logica Research conducted the online survey of 1,000 401(k) participants ages 21-70 in April. Last year’s survey took place May 28- June 11, when the pandemic was in full swing.
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