Affluent Americans Raise Retirement Target to $2.6M, Yet Save Only Half

Key points

• HSBC surveyed nearly 10,000 affluent and high-net-worth individuals aged 21 to 69, finding their average retirement goal is $2.6 million.
• This figure is approximately double the $1.2 million estimated by general retirement savers in a separate Schroders survey.
• On average, these wealthy respondents have accumulated only 52% of their stated retirement goal.
• Savings progress varies by generation: Baby Boomers have saved 74% of their goal, Gen X 55%, Gen Z 45%, and Millennials 42%.
• Nearly 60% of respondents said longevity has altered their financial plans, with 31% saving more for long-term healthcare costs.
• Advisers recommend abandoning fixed 'magic numbers' in favor of flexible, personalized financial plans that adapt to changing life priorities.

Background

This development follows broader trends in wealth management where rising costs of living and healthcare are reshaping retirement expectations. While previous coverage focused on specific luxury expenditures, such as high-cost medical retreats, this survey highlights a systemic shift in how affluent individuals define financial security. The data suggests that even those with substantial assets are struggling to meet their own revised benchmarks, indicating a widespread gap between aspirations and actual savings accumulation across multiple generations.

Why it matters

The widening gap between required and saved retirement funds among the wealthy signals deeper structural changes in personal finance. As longevity increases and the definition of a 'comfortable' retirement expands to include career reinvention and multi-generational support, traditional savings models may be insufficient. This trend could influence investment strategies, estate planning, and the demand for flexible financial advisory services, as individuals seek to align their wealth with evolving lifestyle goals rather than static income targets.

What to watch

Financial advisers are expected to continue promoting dynamic retirement planning over fixed numerical targets. Investors may increasingly diversify their portfolios to account for longer lifespans and variable income needs. The focus will likely shift toward personalized strategies that accommodate changing priorities, such as funding new businesses or supporting family members, rather than solely targeting a single retirement benchmark.