It’s Kind of Insane More Americans Don’t Know The One Factor That Doubles Retirement Savings

Doubling your retirement savings may sound like a dream scenario, especially since far too many Americans end up with way less money than they need to support themselves in their 401(k)s, IRAs, and other retirement investment accounts.   In reality, though, ending up with twice as much as the average American doesn’t have to be as hard as it seems and it doesn’t necessarily require you to make a huge income or to sacrifice all fun spending.

Instead, there’s one really simple factor that can give you the best chance of doubling your retirement savings. Unfortunately, many Americans don’t know what it is and aren’t doing it. You don’t have to be one of those Americans. Instead, here’s what you need to do to build a big nest egg that beats the average. 

This simple factor can double retirement savings

Northwestern Mutual’s 2024 Planning and Progress study revealed the simple step that Americans have taken to double their retirement savings. According to the research, those who work with a financial advisor have around twice the retirement investment account balances compared to people who try to manage their retirement investing all on their own with no professional advice. 

The research showed that those who have a financial advisor guiding them have around $132,000 in retirement savings, compared with $62,000 among those with no advisor. Those who have an advisor were also planning to retire at a much younger age — 64, versus 66 for those who have no advisor assisting them. Being able to retire at a younger age is within reach when you have twice the money in your retirement plan, so this is not a surprise.

It’s not just that people working with an advisor were richer, either. Those who had help with managing their money were significantly more likely to have a long-term plan in place that takes economic ups and downs into account. They were also more likely to have emergency savings that can help keep them out of debt and that makes investing for retirement possible, and they were much more likely to feel financially secure.

Why does having an advisor make such a big impact?

Of course, it’s natural to assume that having help from a financial advisor can improve your money life — but the average American may not know the extent of the difference professional advice could make. After all, if more people were aware that working with an advisor was likely to enable them to double their retirement savings, then it’s likely more people would get professional help sooner.

While it seems hard to believe, when you really stop to think about it, though, it makes good sense why you would end up a lot better off if you have a trained professional helping to guide you in setting your money goals and making them a reality. After all, there are dozens of little money decisions that most of us make every day without really stopping to think about how they fit into the big picture or impact long-term goals. An advisor can help you to spot patterns, develop a broad framework for managing your money, and put systems in place that set you up for success rather than continuing to struggle and making decisions ad hoc without an overall plan.

When you work with an advisor, you can do more than just track where your money is going, make a simple budget, or set retirement savings goals. You can dig deeper with your money, get to the root of problems, and find real solutions that maximize where your investment dollars are going. This way, you can ensure you’re using all of your funds as wisely as possible to truly set yourself up for the success you deserve.

You don’t have to be rich to reach out to an advisor or to achieve retirement success — you just have to get the help that so many successful Americans have had in their quest for a retirement full of abundance instead of financial fears.