More Than Half of Americans Say They'll Need Over $5,000 a Month in Retirement. Is That Sufficient?

For many workers, retirement is becoming harder to picture. A survey by Kickresume of 1,294 people found that 54% want to retire before 60. Only 28% expect to achieve that goal. The average ideal retirement age is 58, while the average expected age is 62.

Americans Want to Retire Early, but Expect to Work Longer

The survey shows a clear gap between retirement hopes and expectations. Some 57% expect to retire later than they would ideally like. One in 10 respondents does not expect to retire at all. That rises from 6% among people aged 18 to 29 to 17% among those aged 62 to 80.

Women face a wider gap. Some 57% want to retire before 60, compared with 52% of men. Yet only 25% of women expect to do so, compared with 29% of men. Women are also twice as likely as men to expect never to retire, at 14% versus 7%.

Personal Savings Are Becoming More Important

The survey found that 60% expect personal savings and investments to fund their retirement. Only 24% expect a state pension, while 22% expect an employer pension. Just 40% expect income from any pension.

Another 20% expect to keep working for income. Meanwhile, 11% do not know where their retirement money will come from. The figures differ by region. Some 35% of Europeans expect a state pension, compared with 22% in North America and 13% in Asia.

More Than Half in North America Need Over $5,000

The survey asked respondents how much monthly income they would need to retire comfortably, based on today's money. In North America, 53% said they would need more than $5,000 a month. That equals more than $60,000 a year.

Across the full survey, 57% said they would need at least $3,500 a month. The amount above $5,000 varied little by gender. Some 32% of men and 34% of women selected more than $5,000. The differences were much larger between regions. Africa recorded 35%, Asia 25%, Latin America 22%, and Europe 19%. North America had the highest figure at 53%.

Americans Have Lower Retirement Confidence

Retirement confidence was weakest among people aged 46 to 61. Some 30% of this group reported low confidence, compared with 35% reporting high confidence. The US was the only region where low confidence exceeded high confidence. Some 37% of American respondents reported low confidence. Only 33% reported high confidence that they would retire comfortably.

Americans also had the strongest concerns about their retirement prospects compared with previous generations. Some 79% said they expect retirement to be harder than it was for their parents. Only 8% believe it will be easier.

Many Workers Are Saving, but Not Everyone Is Preparing

Regular saving was the most common retirement preparation step, although fewer than half selected it. Investing in stocks, ETFs or funds followed at 44%. But 13% said they were taking none of the listed steps.

Men and women reported similar saving rates. Some 47% of men and 48% of women said they save regularly. The biggest difference appeared in investing. Some 47% of men invest in stocks, ETFs or funds, compared with 39% of women.

Inflation Is the Biggest Retirement Fear

Inflation was the top retirement concern, cited by 31% of respondents. Another 29% feared running out of money. One in five worried about becoming dependent on other people. Healthcare costs also ranked among the leading concerns.

Younger and older workers showed different priorities. Younger respondents were more likely to worry about purpose and loneliness. Healthcare concerns became more prominent among older respondents.

A Higher Income Could Make the Biggest Difference

When asked what would improve their retirement prospects, 25% selected a higher income now. A more stable economy followed at 14%, while 13% chose a lower cost of living. Some 11% said starting to save earlier would have helped. Only 8% selected better financial advice or education. The survey highlights a difficult retirement calculation. Many workers want to stop working before 60, but far fewer believe they can.

For North American respondents, the financial target is also high, with 53% saying they would need more than $5,000 a month. For Americans, the concern is sharper. Most believe they face a harder retirement than their parents did, while confidence remains relatively low.