Wealthy Americans now estimate they need $2.6 million to retire comfortably, a 26% jump from a year earlier, yet the typical affluent investor has set aside only about half that amount, according to a new global survey by HSBC. The research, conducted by Ipsos on behalf of the bank, polled nearly 10,000 affluent and high-net-worth individuals across 10 markets. Among U.S. respondents, average retirement savings stood at 52% of their target, translating to a shortfall of roughly $1.25 million against the $2.6 million goal.
Across all markets, the perceived cost of retirement averaged $1.26 million, with investors holding 49% of that amount. The gap persists across every age cohort, though it narrows for those closer to leaving the workforce. Baby boomers reported having 74% of their goal saved, while Generation X stood at 55%. Gen Z, at 45%, edged out millennials, who had accumulated 42%.
Why the retirement savings gap keeps widening
HSBC attributes the shortfall to clients attempting to fund multiple life stages simultaneously. Seven in 10 U.S. respondents said their financial plans no longer follow a linear path. Retirement remains the top priority, cited by 43%, but 39% are also financing other life resets—such as career changes, new businesses, planned breaks, or skill development. Another 37% said they are caught between supporting both children and aging parents.
“A comfortable retirement is becoming more expensive, even for those with substantial wealth,” said Racquel Oden, U.S. head of international wealth and premier banking at HSBC. “As investors build careers, raise families, support aging parents and save for retirement all at once, flexible planning and expert guidance are more important than ever to help them stay on track toward their goals.”
Investors appear to agree. Some 76% of U.S. respondents said they want expert guidance and specialist help with competing priorities, and 75% want wealth products flexible enough to serve multiple needs.
Retirement as a gradual exit
Clients are also redefining how they stop working. Among U.S. respondents not yet retired, 64% expect to take a phased exit from work, stepping back gradually rather than quitting outright. Of those, 34% plan to reduce their hours over time, 21% intend to move into an advisory role or passion project, and 10% plan to take mini-retirements.
The concept of a mini-retirement has gained traction, with recent research by MassMutual finding that 15% of Americans have taken one, and 34% say they have either considered it or might think about it in the future. Still, 72% worry it would detract from their retirement security. Among non-retired respondents, 34% said insufficient savings is holding them back from test-driving retirement, and 23% cited the fear of losing steady income.
Longer life spans are also reshaping legacy plans. Some 59% of Americans in HSBC's research said living longer has already changed their approach to passing on wealth, and 31% are setting aside more for future costs such as long-term health care, even if that reduces what heirs receive. Still, 55% expect to leave a significant legacy, with a median value of $900,000.
The findings echo other recent studies. A Transamerica survey found that 78% of workers say inflation hampers their retirement saving, while a TIAA survey reported that 43% have cut retirement savings amid concerns about Social Security cuts. Advisors may need to help clients recalibrate expectations and build more flexible strategies to address the widening gap.
