Retirement Goals Soar to $1.46 Million While Savings Plummet, Widening Gap for Gen Z

• Americans now think they need a record $1.46 million saved to retire comfortably, up 53% from 2020, due to high inflation. However, the average retirement savings has dropped to $88,400.

• The gap between target retirement savings and actual savings is now $1.37 million on average. Gen Z has saved $22,800 towards a $1.63 million goal.

• Gen Z expects to retire earlier at age 60, having started saving at 22, a decade sooner than other generations. 30% think they'll live to 100.

• Only 30% of people have a plan to minimize taxes on retirement savings. Withdrawal payments are usually taxed at 20-30%.

• Strategies to reduce retirement tax bills include strategic withdrawals from traditional and Roth IRAs, charitable donations from taxable accounts, and HSAs for medical costs.