For many years, $1 million seems to be the standard when it comes to the amount of money you should set aside for retirement. However, even if it seems impossible to achieve for some, the truth is that it might not actually be enough to cater to your care during retirement. Inflation, the uncertainty of Social Security benefits, and longer life span all contribute to make the long-touted savings target inadequate.

Recently, there was a survey conducted among 226 investment advisers. Around 71% stated that $1 million is no longer sufficient for the needs of a regular American family. Many advisers recommend doubling or even tripling the amount. Younger generations are seen to be most vulnerable to the economic problems. When they grow older, they will inherit the problems caused today. The recommended savings (based on generation) are as follows:

• Generation Y (18-26 years old): should have to save at least $2 million. Some advisers even stated the figure at $3 million to remain on the safe side.
• Generation X (27-42 years old): should set a goal of $1 million. Around forty percent of the respondents believe that they should save $3 million.
• Boomers (43-64 years old): the recommendations for baby boomers seem to be mixed. 35% said $2-$3 million is important. Meanwhile, 30% said $1.5-$2 million may be enough.

Based on the survey, it seems that the only generation that comes close to living comfortably for $1 million are seniors. Experts say that $500,000 to $1.5 million is enough for many families under that age bracket.

It is true that in general, people tend to spend less during retirement. However, unforeseen circumstances like inflation or illness can easily wipe out savings. It is important to get appropriate financial protection against these risks.

Traditionally, homes will have good value if it has a good location, near offices or within proximity of renowned schools. It also helps that homes like these are usually situation in well-maintained neighborhoods with friendly communities. However, the above-mentioned factors no longer provide homeowners with the assurance that their homes will hold its value. Why? The neighbor’s mortgage.

It is estimated that around a third of all mortgage holders are holding a loan balance that is higher compared to the market value of their property right now. They are known as “underwater” borrowers and they are unlikely to many of them are unwilling to pay more for a home that actually costs less.

The finding released by the Congressional Oversight Panel on the Troubled Asset Relief Program points out that when troubled homeowners experience further financial distress, they are likely to lose their homes due to little or no incentive to keep their properly. The resulting empty properties, especially when concentrated in certain communities, will have a dramatic adverse effect on the home prices at that area.

Home Abuse: It is Not Wanted

New developments typically look fresh and finishing touches like landscaping are usually still being added. But John Sullivan of the National Associated of Exclusive Buyer Agents report that new subdivisions are experiencing home abuse. Lawns look straggly, the paint appears dirty, and the windows are dark from dirt. These are all signs that the previous owners experienced mortgage problems.

When the mortgage debt declines 20 percent below the property value, there is a high likelihood that it will be foreclosed. Evan Feldman from ZipRealty tries to inform potential home owners about this threat. Buying a home is the single biggest investment you will make. By getting all the information about the neighborhood and the community, shock and financial losses can be avoided later on.