The Average American Worker's $1.37 Million Retirement Savings Gap Problem

How do workers' savings stack up to their retirement goals?

Though the average worker expects to need about $1.46 million in retirement, the average retirement nest egg sits at just $88,400 in 2024. That's more than $10,000 less than the average retirement savings balance in 2021. It leaves the typical worker with a $1.37 million retirement savings deficit. But the situation isn't that dire for everyone.

The survey found that Gen Z and millennials are both about $1.6 million off their retirement savings goals.

Gen X and baby boomers have a bit more cause for concern. They're $1.45 million and $870,000 short of their retirement goals, respectively. They'd have to set aside a large percentage of their paychecks to achieve their goals within the next decade or two. This doesn't make it impossible, but it makes having a savings plan -- and a backup plan -- all the more important.

What do you do if you're struggling to save for retirement?

There are a few questions you need to answer to build a sound retirement savings strategy. First, you need to know where you're going to get the money to invest. Explore all your options and decide which is most feasible for you.

• Start a side hustle or reduce your expenses to increase spare cash.
• Negotiate a raise or look for better-paying employment.

A 401(k) plan is a great choice if your company offers one, especially if it has an employer match. Just be mindful of the annual contribution limits and consider index funds for diversification.

Lastly, have a backup plan, such as delaying retirement or reducing work hours gradually if necessary.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're behind on your retirement savings. Discover how to maximize your Social Security benefits for a more confident retirement.