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Biggs argues that the prevailing perception of needing $1.5 million for retirement is largely unfounded, primarily because Social Security benefits are often more generous than people anticipate. For instance, an average couple that retired in 2022 expects $46,000 per year from Social Security, which exceeds the elderly poverty line.
Saving for Retirement: A Statistical Perspective
Despite information confirming that retirees often retain substantial funds post-retirement, many Americans still struggle to save adequately. According to a report from BlackRock, about 40% of retirees maintain 100% or more of their initial retirement savings after 17-18 years. This statistic illustrates that many retirees do not deplete their assets as rapidly as one might think.