A New Survey Reveals Americans’ Magic Number for Retirement
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A New Survey Reveals Americans’ Magic Number for Retirement

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

By JOSEPH DE AVILA
Thu, Oct 27, 2022 9:00amGrey Clock 2 min

The magic number to retire just went even higher.

Americans now think their households will need at least $1.25 million to retire comfortably, a 20% jump from a year ago, according to a survey released Tuesday by financial services company Northwestern Mutual.

While Americans say they will need more money after they retire, the average amount in a retirement savings account has dropped this year to $86,869, an 11% decline from 2021, the survey said.

The expected retirement age also ticked up to 64 years of age, compared with 62.6 last year.

Christian Mitchell, chief customer officer at Northwestern Mutual, said rising inflation and volatility in financial markets are weighing on people’s mind-sets. That is changing people’s expectations around how much savings they will need for retirement, he said.

The survey, which polled 2,381 American adults in February, comes as consumers have been squeezed by rising inflation. That has put pressure on their spending power and their ability to save.

Stock and bond markets have also fallen sharply this year. A typical 60/40 portfolio, where investors put 60% of their money into the stock market and 40% of their money into bonds, is on track to deliver its worst returns in 100 years as of mid-October, according to Bank of America.

As inflation has surged, the federal government has taken steps to try to mitigate the pain for retirees and investors.

The government increased Social Security checks by 8.7% for 2023, the largest cost-of-living adjustment to benefits in four decades. The Internal Revenue Service also made inflation adjustments for 401(k) savings accounts, increasing contribution limits by $2,000 to $22,500 for 2023. About 60 million American workers have 401(k) plans, according to the Investment Company Institute.

The Northwestern Mutual survey found that many Americans are worried about their prospects for retirement. About four in 10 people said they don’t think they will have enough money when they retire. Nearly half of the people surveyed also said they can envision scenarios where Social Security no longer exists.

The amount of money a household will need to retire depends on many variables, including where people live and their standard of living, Mr. Mitchell said. Whether a person expects to care for parents or children in retirement are also factors to consider, he said.

“The $1.25 million for some households, that may be right, it might be too high, it might be too low,” Mr. Mitchell said.

The Covid-19 pandemic has also shaken up retirement plans for Americans. About one in four people said they now plan to retire later because of the pandemic, the survey said. Of those who are putting off retirement, 59% said they wanted to work more to save money. And 45% said they were worried about rising healthcare costs or had unexpected medical costs.

But about 15% of people said they planned to retire early because of the pandemic.



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‘Look Them in the Eye.’ As Maui Rebuilds, Returning Tourists Need to Be Mindful of the Trauma, Says Cultural Advisor.
By DANIELLE BERNABE
Tue, Mar 19, 2024 6 min

There’s an opportunity for education as tourists return to Maui while it rebuilds from last summer’s devastating wildfire, says Kalikolehua Storer, a Lahaina resident and the area cultural and training advisor for Hyatt’s Maui resorts.

Designated a National Historic Landmark in 1962, the Lahaina Historic District—once a lush Hawaiian capital and retreat for Hawaiian monarchs—is beloved by residents, explored by tourists, and has a deep-rooted heritage. Storer was working on the opposite side of the island when the blaze started last August. She scrambled to connect with family and friends. And like so many others, she grappled with the utter chaos that rapidly destroyed her hometown.

Storer’s home was spared, but the fire ultimately claimed 115 lives and destroyed or damaged more than 2,300 structures, including culturally significant sites like the Na ‘Aikane o Maui Cultural and Research Center, which housed invaluable Hawaiian artefacts (books signed by kings, genealogy, maps, and more).

Kalikolehua Storer, a Lahaina resident and the area cultural and training advisor for Hyatt’s Maui resorts
Courtesy of Hyatt

Historically, Lahaina thrived from mauka to makai (mountain to ocean), with waterways nourishing native ecosystems and communities. However, years of water redirection and climate-related drought set the stage for such a disaster, and according to Storer, the fire underscored the erosion of Hawaiian control over land and natural resources, spotlighting issues like land degradation, water misappropriation, and tourism’s stronghold on Maui.

Tourism makes up a substantial part of Maui’s GDP. The wildfire led to a 51.4% drop in visitor arrivals between August and October 2023 compared to 2022, triggering a sharp 87.1% rise in unemployment, according to government statistics.

The sector’s dominance highlights the need for a more balanced and sustainable model. Moreover, the fire’s impact on tourism underscores the urgency to diversify Hawaii’s economy for greater growth and resilience. Lahaina’s water management issues, such as the historical diversion for sugar cane cultivation, have drastically altered local ecosystems.

With only 23% of water allocated for public use and the majority consumed by the private sector (resorts, golf courses, and some agriculture, for instance), the ecological imbalance has had severe consequences for indigenous environments. Storer said she believes the aftermath of the fires and the strain on Maui’s tourism highlight the interconnectedness of ecological health and economic stability.

In response to the crisis, Maui Mayor Richard Bissen formed a five-member advisory team to lead the recovery efforts, with Storer as a key participant. Storer also sits at the table of Maui’s Office of Recovery Natural and Cultural Resources, which helps to shine light on issues impacting air, water, and land. Storer collaborates with partners from federal, state, and county levels, along with Lahaina’s cultural practitioners, to facilitate Lahaina’s recovery post-wildfire.

Storer shared visions of Maui’s rebuild with  Penta , and the balance between tourism, ecology, and the road to sustainable solutions.

Penta: With such a huge road ahead, how are you embracing hope? And what is your ideal vision for Maui?

Kalikolehua Storer: I know that I can get caught up in the end result of what will or will not work, but in the moment, our community needs to be heard, and this is my part to lean into what they are sharing. People have envisioned Lahaina as a walking town with cultural sites, a cultural marketplace, and restoring Mokuʻula, the site of the private residence of King Kamehameha III from 1837-1845. It has since been buried under a baseball field.

We also need to diversify the economy. This is a big task, but with Hawaiian leaders in all sectors, I am confident that this can be accomplished. We have nowhere else to go but up, so all ideas are worth a conversation. My ideal Lahaina is to rebuild our historical sites, churches, and learning centres, and better care for the ocean, land, and air. To be better stewards, we need to educate and make it a priority. All of us, including visitors, need to know the importance. The issues we have about water and land need to be resolved.

Explain more about the land and water and how they are pivotal parts of recovery. 

The West Maui Mountains are home to the Pu’u Kukui Watershed and Mauna Kahalawai Watershed Partnership (caretakers of the mountain area directly above the impact zone), which used to flow through waterways and land divisions ( ahupua’a ) to enrich the ecosystems. However, when the sugar cane and pineapple industry arrived, that water was diverted and went straight to those farms. The water never went back to the way it was, and because of this, the indigenous ecologies have been drained. So, water needs to be returned to streams, and a greater percentage needs to be given for public use. This is a major issue and needs to be resolved. The waterways are there, but they need to be cleaned and prepared for water to flow. That has to start upland of the watershed. Looking at an aerial map of Kauaula Valley, most of the area is dry, but along the river where the Palakiko family lives is very lush. They prepared the stream area, and it came back. However, that took years because of private-sector control.

“Asking people how they are doing, looking them in the eye, and caring about them can make a huge difference,” Storer says.
Courtesy of Hyatt

Many people believe that tourism is the biggest problem. Is that true?

Right after the fire, many people encouraged tourists to stay away. And people listened. Our economy dropped because people stopped coming. Unemployment shot up, and the economy, as a whole, suffered. Our island is so dependent on tourism, and that is part of the problem. I believe we need to diversify the economy.

How can we educate tourists, and how can hotels be better stewards?

It truly is all about education and visitors engaging in cultural experiences and even conservancy programs, so that they have a better understanding of people and place when they visit. At Andaz and the other Hyatt hotels in Maui, I’ve developed very strong, culturally driven programs to engage our guests in authentic Hawaiian activities. Things like lei making, coconut weaving, hula lessons, celestial navigation, taro demonstrations, and Natural Cultural Resources programming with the Pu’u Kukui Watershed Preserve, Kipuka Olowalu, and the Ma Ka Hana Ka ‘Ike at Mahele Farms.

At Andaz, the lūʻau experience is called the Feast at Mōkapu and focuses on the journey of the Polynesian ancestors arriving on Maui and settling in the ahupua’a where the resort sits. We don’t hold back in that storytelling. We dive into history that isn’t normally spotlighted at luau, and the uncomfortable truth of settlers to Hawaii is really important. After the fires, this education became even more important, and I encourage tourists to participate in experiences like this.

Hotels play a huge role in this and can provide cultural sensitivity sessions for their guests.

How can tourists play a role in the rebuilding?

It’s important now more than ever for visitors to consider what happened, and that their waiter, housekeeper, bartender, front desk attendant, dive instructor, store clerk, literally everyone was somehow impacted by this. Asking people how they are doing, looking them in the eye, and caring about them can make a huge difference. Also, if you choose to visit Maui, there are ways to volunteer and donate. We’re not just looking at physically rebuilding here, we’re looking at emotional wellness, history, and so much more that is going to take years. So, I would say donating to Maui Strong and taking a few hours of vacation time to volunteer can greatly help.

Allocation of funds and policies that help to financially sustain our agencies that do the work in the watersheds, waterways, farmers, and ocean agencies. The work they do today is the key to this turnaround. I believe that visitor taxes should be allocated for our Natural and Cultural Resources effort.

How can tourists be a “good tourist” and still visit in a conscientious way?

Be kind without being maha’oi (being forward in asking) and asking so many questions. A nice, genuine smile and encouraging words in passing can uplift someone. Also, those who own vacation rentals. We need help from that sector. We need to take a look at the things that got us into this crisis to begin with. Unfortunately, we are having to work through policies written years ago, not ever thinking we would be in this situation.

This interview was edited for length and clarity.

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