Here's how much Portlanders think they need to retire comfortably

PORTLAND, Ore. (KOIN) – Money is tight for many Americans, but it can feel especially hard for those planning for retirement in Portland.

That’s because residents think they need to have $2.02 million in savings to retire comfortably in the Rose City, according to a new study from Northwestern Mutual.

The study surveyed 4,626 U.S. adults and found that, nationally, people thought they would need an average of $1.26 million in order to retire. That means Portland’s results are nearly double the national average.

According to Northwestern Mutual, 37% of Portlanders feel like they will be financially prepared to retire when they are old enough compared to the national average of 54%. Most residents, 58%, believe they are “somewhat or very likely” to outlive their savings.

The study also found that more than a third of Portland residents plan to work during their retirement years — which they hope will begin at age 68. The national average retirement age is 65. 

On average, Portlanders began saving for retirement at 31 years old, and 21% of them currently have less than 1x their current income in savings compared to 17% nationally, according to the study. Only 2% of residents have 10x their current income in savings.

“Portlanders are experiencing greater financial anxiety surrounding their preparedness for retirement,” financial advisor Kristie Hill said. “What’s important to remember is that retirement planning is individual for each person retiring. By determining your personal ‘magic number,’ based on where you live and your goals for retirement, you can work with a trusted advisor to develop a financial plan built just for you.” 

Additionally, Portland residents are also worried about the state of Social Security when they reach retirement age, with 35% asking, “Will Social Security be there when I qualify for it?”

“Given the uncertainty of our economy right now, concerns around inflation and Social Security are common as clients are preparing for retirement,” Hill said.

She recommends activating Social Security payments later than expected. For instance, if you choose to activate your benefits at 67 instead of 62, you could see a 30% increase in your checks. Waiting an additional three years, until age 70, could tack on another 24%.

The study also found that 8 in 10 Portlanders believe their vision of retirement is different from how their parents’ generation viewed it. Many said they plan to work during their retirement years, with 62% saying they plan to work part-time or full-time at a different job. One in four believe they will need to work a “side gig” with flexible hours. 

Only one out of 10 Portlanders said they plan to work part-time at their current job.

“Reshaping retirement, many people are shifting their focus from simply leaving the workforce to pursuing what truly matters to them,” Hill said. “Whether that means embarking on a new adventure, dedicating more time to family, or contributing to their community, having a solid financial plan ensures they have the freedom to explore their options.”