Americans with 401(k)s were asked how much they need to save for retirement. The answer: $1.7 million

Americans with 401(k)s were recently asked how much they needed to sock away to afford retirement. The answer: $1.7 million. 

That number may seem like a pipe dream to many, especially given that one-quarter of Americans have no retirement savings at all. But it's actually a humbler goal than the estimate given by workers when asked the same question a year ago, according to the new survey from Charles Schwab's Retirement Plan Services. In 2021, workers said they believed they would need $1.9 million to retire, the survey found. 

Americans are likely lowering their retirement savings goals following two years of the pandemic, which caused many to scale back spending by postponing vacations and cutting back on eating out and entertainment, noted Catherine Golladay, managing director and head of workplace financial services at Charles Schwab. And in 2022, workers have been walloped by inflation, which they now view as their top obstacle to saving for their golden years.