You can't feel secure in retirement if you don't have a good idea of how much money you'll need.
But if you believe a new Legg Mason survey, you may have to save far more than you think. Investors surveyed by the global investment management firm said they will require an average of $2.5 million in retirement to enjoy the quality of life they have today.
That's about $2.2 million more than the average balance of $385,000 those investors actually had in 401(k)s and similar retirement plans, which might help explain why only 40 percent of the 458 investors surveyed said they are "very confident" in their ability to "retire at the age I want to." (And the investors surveyed have set more aside than the average retirement saver. At Fidelity, the nation's largest retirement plan provider, the average 401(k) balance was $91,300 at the end of 2014.)
Despite their above-average savings rate, these investors are worrywarts. On average, they told Legg Mason they spend an hour and 18 minutes worrying about money each day. That's 475 hours, or nearly 20 full days, of financial hand-wringing a year.
All that anxiety has generated some resolve to change savings habits. Some 72 percent of investors surveyed said they would make sacrifices now to have more money in retirement and 42 percent expect to cut expenses so they don't outlive their assets.