A million dollars just doesn’t go as far as it used to.  According to a New York Times article, $1 million in 1953 is the equivalent of $8.7 million today.  A million dollars invested in municipal bonds today, what was traditionally considered the risk free investment choice for retirees, withdrawn at 4% annually, has only a 28% chance of lasting for the retiree’s lifetime.  That means living off $40,000 per year and still not guaranteeing a secure retirement future.  Suddenly a million dollars doesn’t appear to provide a lifestyle living high off the hog.  Those numbers can make investors reconsider their investment goals for retirement, especially since most Americans don’t even come close to saving $1 million for retirement.  In fact, a recent study by the Pew Charitable Trusts found with each progressive generation, Americans appear to be saving less for retirement.

How do your plan participants calculate their retirement savings goal?