Here's how much you need to save each month to retire at 59 with $2 million, according to CNBC calculations:
Earning a 4% annual rate of return: $2,301.22 per month
- Annual salary needed if you save 10% of your income: $276,146
- Annual salary needed if you save 15% of your income: $184,107
Earning a 6% annual rate of return: $1,503.39 per month
- Annual salary needed if you save 10% of your income: $180,407
- Annual salary needed if you save 15% of your income: $120,278
Earning a 8% annual rate of return: $949.40 per month
- Annual salary needed if you save 10% of your income: $113,928
- Annual salary needed if you save 15% of your income: $75,956
Although the majority of both Gen Zers and millennials are confident in their ability to achieve long-term financial security, nearly 75% of each age demographic admit that their financial planning needs improvement, according to Northwestern Mutual's survey.
But some are already taking steps to improve their money habits.
Almost 30% of Gen Z respondents say they didn't have a financial advisor before 2022, but plan to work with one or have already begun working with one, Northwestern Mutual reports. Additionally, 70% of Gen Zers say they were able to build up their savings during the Covid-19 pandemic — the highest percentage across all age groups, according to the survey.
"It's encouraging to see the youngest generation of adults showing an inclination to plan and holding themselves to a high bar," Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual, said in a press release.
To see how much you'd need to put away each month if you start later than 25, check out the full version of the story on CNBC Make It.
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