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A recent survey conducted by retirement services provider Empower reveals that Americans have set specific target ages for achieving key financial milestones. The survey, which involved nearly 1,000 participants, asked respondents to identify ideal ages for six significant life events: starting retirement savings, landing a dream job, earning a six-figure income, buying a home, becoming debt-free, and retiring.
According to the survey, Americans believe that the ideal age to start saving for retirement is 27, while landing a dream job should happen by 29. They expect to earn a six-figure salary by 35, purchase their first home at 30, become debt-free by 41, and retire by 58. However, these expectations may not align with reality. For instance, the average first-time homebuyer is now closer to 40, as reported by USA Today.
The survey also highlights a sense of regret among many respondents, with nearly half wishing they had started saving earlier. About one-quarter of participants feel behind in reaching their financial goals. Despite these concerns, the majority of Americans, 83%, believe there is no set age to achieve life milestones, emphasizing flexibility in financial planning.
Experts, such as Catherine Collinson from the Transamerica Center for Retirement Studies, suggest that starting to save for retirement in one's twenties is beneficial, though many younger generations are already taking steps to secure their financial futures. The survey also indicates that significant life changes, such as buying a home or retiring, are seen as major opportunities for wealth-building.
While financial goals vary, the survey underscores the importance of early and consistent saving. As Empower's research suggests, having a financial plan can help individuals navigate major life changes more effectively, with many respondents recognizing the value of consulting financial planners to achieve their objectives.