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Pandemic is Heightening Stress Over the $1.9 Million Retirement Number. How you can save more

Lazetta spoke with CNBC's Sharon Epperson on saving during the pandemic.

The top source of financial stress is saving enough for a comfortable retirement, a worry that is trending upward as a result of the pandemic, according to a newly released nationwide survey by Charles Schwab of 1,000 currently employed 401(k) plan participants between the ages of 25 and 70. 

The survey, conducted between May 28 and June 11, 2020, by Logica Research for Schwab Retirement Plan Services, revealed that Americans think they’ll need to save $1.9 million on average to retire. This is up 12%, from $1.7 million in 2019. Millennial and Gen X savers were slightly more ambitious, putting their target at $2 million, while boomers said they’ll need about $1.6 million.

Yet many believe their retirement goals are out of reach. Thirty-seven percent feel they are “very likely” to achieve their retirement savings goals, nearly half (49%) report they are “somewhat likely” to achieve their retirement savings goals, and 14% say it is “not likely” they will achieve their goals at all. One in five (21%) expects to retire later than originally planned because of the economic fallout from the pandemic.

As a result, the stress from the pandemic has led many to make some money moves: Forty-one percent of survey respondents made changes to their 401(k) as a direct result of the economic impact of Covid-19. Of the 41% who acted, 14% rebalanced their portfolio and 12% increased their contribution rate.

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