Survey suggests average American will need $1.25 million to retire comfortably

Americans will need a pretty penny saved up in their bank accounts if they want to retire comfortably, according to a new study from Northwestern Mutual.

Everyone knows retirement isn't a cheap affair, but it's safe to say you need to be rolling in some serious cash as a new study has highlighted the reality of taking retirement in the US in 2022.

The shocking statistics were released back in October, with the online survey carried out in February on a group of 2,381 adults aged 18 and over.

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According to the new figures, the average American will need a staggering $1.25 million to their name, a 20 percent hike from respondents of the same survey last year.

As the cost of living feels like it only gets higher year on year, the latest figures are bad news for those looking to hang up their work gear and settle into retirement.

Many have seen their retirement savings take a dip over the last year, mainly due to factors including market volatility and soaring inflation rates.

The survey found that the average retirement nest egg dropped 11 percent from $98,800 last year to $86,869 this year, while the average retirement age is up two years at 64.

Meanwhile, 25 percent of respondents confessed to planning on retiring later than they had imagined, with the main reason given being that they wanted to work and save more money.

Other reasons given included worries over the increasing cost of healthcare and having to take care of a family member or friend.

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The numbers come off the back of another study from Bankrate.com which found that 55 percent of working Americans felt as though they didn't have enough retirement savings, citing rocketing living costs putting a strain on their household outgoings.

Of those surveyed, the group closest to the age of retirement — those aged 58 to 76 — were more likely to say they feel behind with their savings, and admitted to wishing they'd started saving their pennies from a younger age.

Greg McBride, chief financial analyst at Bankrate.com, commented: "More than one-third of workers feel they are ‘significantly behind’ on their retirement savings.

“And those who already feel behind are twice as likely to be contributing less this year than workers who feel they’re on track or ahead of where they should be."

He added: “The closer you get to retirement, the more likely you are to say that that is your biggest financial regret."

Just gets better and better doesn't it, folks?