Many younger Americans aren’t saving enough for retirement

Saving enough for retirement?

Homeownership has always been viewed as the road to financial prosperity but rising costs are preventing many from buying homesand inflation is taking a bigger chunk out of everyone’s salaries.

NEW YORK – How much do you think you need for retirement?

"If I'm going to continue to live in New York City, at least $5 million," one woman told FOX 5 NY.

Millennial and Generation Z members have a tough road ahead to save for retirement. If you want to maintain a certain lifestyle, stash your money away.  

"That's going to require for most people to save probably 15% to 20% of their take-home pay, and most people are saving next to nothing," Boston University economics professor Laurence Kotlikoff said. "In general, people don't have financial plans for the long-term for the possibility they could live to the maximum age of life, which is 100." 22% of millennials have gone into debt from dating amid inflation

Homeownership has always been viewed as the road to financial prosperity but rising costs are preventing many from buying homes and inflation is taking a bigger chunk out of everyone's salaries.

In addition, there is a bleak forecast for retirement years.

"Baby Boomers and Generation Xers — they're facing really much higher taxes, cuts in social security benefits because the system is $61 trillion in the red," Kotlikoff said. "Social security is going to be taxed at a higher rate." Labor Dept. proposal could upend rules for gig workers, companies

Kotlikoff said he believes the average person will need to save at least $1 million for retirement but most have far less. 

"I think it's probably on the order of half a million dollars and I think the typical person in retirement has about $250,000 apart from their house."