Younger Adults See Need for Larger Retirement Nest Egg

Most young adults think they'll need to be millionaires before they retire, according to a new poll by the Northwestern Mutual Foundation's financial literacy Web site,

Visitors to the Web site, a collaboration between the Northwestern Mutual Foundation, the charitable arm of Northwestern Mutual, and the National Council on Economic Education (NCEE), were asked how much money they would need to have saved in order to retire, and about 85% of respondents ages 18 to 29 said they would need at least $1 million. Almost half (45%) in that same age group said they would need at least $2 million, according to a press release.

In comparison, only 60% of adults ages 30 and up indicated they would need to save $1 million, and only 27% said they would need at least $2 million.

“While today’s adults think they’ll need one nest egg to retire, young people think they’ll need a baker’s dozen,” said Meridee Maynard, financial literacy expert and senior vice president, Northwestern Mutual. “In contrast to their older counterparts, young adults see a need to save more for retirement, which is wise given this generation is expected to live longer than any in history.”

The poll also found that women expect to live longer than their male counterparts, and yet their goals for retirement savings are almost exactly the same. Almost 65% of women expected to live to at least 86 years old, compared to only 50% of men. However, about 30% of both men and women said they wouldn’t need more than $1 million in retirement savings, 70% said they would need more than $1 million, and about 40% said they would need more than $2 million.