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How much millennials think they need to retire is far less than they actually need

The company behind a new poll has said that Americans aged between 21 and 37 “might be in for a rude awakening” when they give up work.

It looks as though US millennials don’t think they need to save as much for their retirement as they actually do.

A survey by healthcare company Aperion Care revealed that just over a third (34%) of Americans aged 21 to 37 believe they need less than $200,000 to retire comfortably.

According to social welfare organisation AARP, however, 30-year retirements typically cost $1.18m – a total that just a quarter of millennials think they’ll have to save for.

Some 58% of respondents are actively saving towards their post-work lives, with 84% having saved less than $50,000.

And while a comfortable majority (60%) expect to be in an “average” financial state when they die, 34% reckon they’ll be in a better financial position relative to their parents (with 38% expecting to be on a par with mum and dad).

Our recent trend report, Fast-Forward Finance, revealed that, while millennials are considered poorer than their boomer parents, they are gaining wealth by being entrepreneurial and receiving inheritances – and that they’re investing their new-found wealth in forces for “good”.