Retirement reality check: Is it too late to start saving?

ALBUQUERQUE, N.M. – Americans now say they need $1.46 million to retire comfortably, up $200,000 from last year, according to a study discussed by Oakmont Advisory Group.

David Hicks of Oakmont Advisory Group said the number can feel overwhelming, but he said people should focus on starting and adjusting a plan instead of panicking.

“The average retiree actually has less than $300,000 saved for retirement, so that’s about a $1 million gap there,” Hicks said.

Hicks said the $1.46 million figure reflects what people think they need, but he said retirement planning depends on each person’s savings, income and timeline.

He said longer life spans now mean many people need to plan for 20, 25 or even 30 years in retirement.

“When you start saving when you’re younger, it makes a lot of difference in the future,” Hicks said.

Hicks said 57% of people do not start saving until after age 30, and he said about a third do not start until their 40s.

Hicks pointed to Fidelity benchmarks that suggest workers should aim to save one times their salary in their 30s, three times in their 40s, six times in their 50s and 10 times by retirement.

“Don’t wait another year. Don’t wait another month. Just start that process of saving,” Hicks said.

Hicks also said the study found people who work with a financial adviser improve their chances of retirement success by about 50% and report more confidence about their plans.