Americans expect ambitious returns – unrealistically ambitious – on their investments in order to comfortably fund retirement, according to a survey from Natixis Global Asset Management released today.
Specifically, respondents said an average annual return of 9.8 percent above inflation will be needed to account for income, housing and healthcare expenses throughout retirement.
With inflation averaging 4.2 percent since 1964, that would mean annual returns of 14 percent. Annual gains in the S&P 500 have averaged 10 percent over the past 50 years.
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