Kevin O’Leary, an outspoken Shark Tank investor and entrepreneur, isn’t one to hold back when asked to share his two cents.
But if you ask Mr. Wonderful for his advice, just be prepared: he won’t sugarcoat it.
In a 2023 segment of Good Morning America’s Swimming with the Sharks , a concerned caller from New York asked O’Leary what percentage of her paycheck she should put into her 401(k) since she’s not sure she can comfortably reach the recommended amount with all her other living expenses to be paid.
“The number is 15%,” O’Leary shot back, “and yes, you can, if you stop buying all that crap you don’t need.”
Sure, it sounds simple. But as the caller and many Americans like her know firsthand, that doesn’t mean it’s easy.
Along with the COVID-19 crisis came the financial crisis. While the government moved quickly to support American workers with stimulus checks and student loan repayments, all that effort — along with supply chain problems and conflicts in Europe, among other factors — ended up leading to the highest inflation the country had seen in 40 years.
While inflation has since eased to 2.6 percent in October, prices are still elevated and Americans’ budgets remain stretched. And their retirement accounts suffer because of it.
In fact, a 2024 survey of working-age Americans found that 73% of respondents say inflation worries them more about retirement. And 55% of them worry that they won’t achieve financial security in their golden years.
Part of the problem may be that how much Americans feel they need for retirement has also suffered some inflation in recent years. In fact, according to a study by Northwestern Mutual, that “magic number” is now rising faster than the rate of inflation. As of 2024, American adults say they need $1.46 million to retire comfortably — up 53% from the $951,000 they thought they needed in 2020.
However, with an average savings of just $88,400 according to Northwestern, working Americans are left with a $1.37 million gap between what they think they need and what they actually have.
Read more: The cost of living in America is still out of control – use these 3 ‘real assets’ to protect your wealth today
