Millennials feeling 'behind' on retirement savings

A survey from Goldman Sachs finds millennials are feeling the crunch to catch up on retirement savings. Among millennials in the workforce who responded to the survey, 34% report feeling behind in saving for retirement.

Determining the amount of savings you need for retirement is not a one-size-fits-all proposition. Lifestyle and location are key variables from person to person. Reaching $1 million in savings was once considered a good benchmark for easing into your golden years.

For younger generations, $1 million in savings likely will not cut it according to a report from Wealthcare Financial.

For younger generations, $1 million in savings likely will not cut it according to a report from Wealthcare Financial, a financial planning firm based in Florida. It found Gen Z and millennials need to prepare for $120,000 to $150,000 per year in retirement due to inflation. This means up to $3 million may be necessary.

There are 1,566 respondents to the Goldman Sachs' Retirement Survey & Insights Report, including 967 workers and 599 people who are retired. Among all workers, about 40% say their savings are falling behind schedule. Baby boomers and Gen X are feeling even more behind than millennials and Gen Z, with more than 50% from both groups saying they need to catch up.

"The generational difference supports the notion that as one progresses through different stages of life and career, it may be difficult to keep savings on track," the report reads.

About 46% of workers who are behind on their savings attribute their issues to financial hardships, while 43% said they had to leave the workforce to care for a child or parent.

Twenty-six-percent of Gen X respondents believe their savings are very behind schedule, along with 23% of baby boomers. Only 9% of baby boomers believe their savings are somewhat ahead of schedule and 31% said they are on track.

Forty-four-percent of all respondents said they were stressed about their finances. Only 15% said they were comfortable with their finances.

Goldman Sachs outlines the three most common actions retirees take when facing a financial crunch: reducing spending, withdrawing from emergency savings and moving to conservative asset allocation.