American savers say they need average annual returns of 9.8% plus the inflation rate to meet their financial needs in retirement, according to Natixis Global Asset Management. Keep in mind that inflation has averaged 4.1% a year since 1964, according to the Dollar Times inflation calculator.

We hate to break it to you, but the S&P 500 has only gained an average of 10% a year over the last 50 years, according to Natixis.

The good news is that there’s an antidote to unrealistic expectations: education. And it can point many ways to a perfectly fine reality—one that doesn’t have to bite.

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Just One Thing You Can Do This Week

Get acquainted with our retirement tools. They’ll help you gain a clearer picture of how much you may need for retirement. Then get up to speed on all the tools you have in your retirement toolkit. There are more than you think.

Source: Natixis Global Asset Management, “2014 Global Survey of Individual Investors” 5/14
Dollar Times inflation calculator
The Cost of Retirement
Retirement Savings Strategies

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