‘You’ll end up with $1.5 million in the bank’: Shark Tank's Kevin O’Leary insists this 1 simple money move is key for your retirement — is your nest egg on track?

Workers are falling behind on saving

Along with the COVID-19 crisis came a financial one. While the government moved quickly to support U.S. workers with stimulus checks and student loan forbearance, all that effort — along with supply chain issues and conflict in Europe, among other factors — eventually led to the highest inflation the country had seen in 40 years.

While inflation has since receded to a more manageable 2.6% in October, prices are still elevated and Americans’ budgets remain stretched. And their retirement accounts are suffering for it.

In fact, a 2024 survey of working-age Americans revealed that 73% of respondents say inflation has them more concerned about retirement. And 55% of them worry they won’t achieve financial security in their golden years.

Part of the problem may be that how much Americans feel they need to for retirement has also undergone some inflation in the last few years. In fact, according to a study from Northwestern Mutual, that “magic number” is now growing faster than the rate of inflation. As of 2024, U.S. adults say they need $1.46 million to retire comfortably — up 53% from the $951,000 they felt 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.

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Get your nest egg on track

With all this factored in, O’Leary’s response might seem a little uncaring. He’s previously blamed splurges like takeout coffee rather than tough economic conditions for Americans’ lack of savings. But although blunt, there is some helpful advice in his message.

While 15% might sound like a lot of your income, there are ways to make it more manageable. If you don’t already have a household budget, it’s time to draft one up. As you go through your expenses, look for things you can trim, whether that be by shopping around for a better rate on your insurance](https://moneywise.com/insurance/health/how-to-find-cheap-health-insurance-policy), cutting back on going out for meals or taking public transit to work instead of driving.

Many Americans are dealing with debt these days, as credit card balances hit a staggering $1.7 trillion in the third quarter of the year. Carrying balances on credit cards gets expensive and you can get stuck in a cycle of compounding interest on your debt. Clearing that off your plate should hopefully free up more room to add to your retirement account.

And keep in mind that just because the rule of thumb is 15%, that doesn’t mean that’s where you have to start. Even small amounts invested consistently over time can make a huge difference by the time you’re ready to retire. Invest what you can now, and aim to increase your rate by 1% every year.

If all of that seems overwhelming or you’re not sure where to start, you don’t have to do it alone. Speaking with an expert can help you come up with a disciplined saving strategy and help grow your nest egg.