The retirement target keeps climbing

Affluent Americans now say they need $2.6 million to retire comfortably, a 26% jump from just a year ago, according to HSBC research conducted by Ipsos surveying investors with at least $100,000 in investable assets.

But savings lag far behind

On average, affluent Americans have saved only 52% of that goal. Baby boomers, closest to retirement, have reached 74% of their target, while millennials lag at just 42%.

A perfect storm of pressures

Uncertainty about Social Security, persistent inflation, competing financial priorities, and the threat of job disruptions are all making it harder for Americans to save for retirement, according to Transamerica Institute.

“It is a perfect storm.”

Healthcare costs are soaring

A sixty-five-year-old retiring this year can expect to spend an average of $185,500 on healthcare over the course of retirement, a 7.5% year-over-year jump, according to a July Fidelity report.

Social Security trust fund under strain

More than 4.1 million Americans turn 65 each year through 2027. The Social Security retirement trust fund is projected to run out of reserves by 2032, according to the Alliance for Lifetime Income.

Competing goals reshape retirement plans

Seven in ten affluent Americans said they are planning for a life that does not follow a neat, step-by-step path.

Longer lives reshape inheritance plans

More than half of affluent Americans said living longer has already changed their legacy plans.

Children's independence becomes the priority

Nearly half of HSBC's respondents said their main goal is for their children or grandchildren to become fully financially independent, even if that means struggling along the way.