How much you REALLY need in retirement savings - as one economist reveals it's far less than you think

A senior think tank economist has revealed how much American really need to save in their retirement accounts - and it is much less than a million dollars. 

According to Andrew Biggs, a senior fellow at the American Enterprise Institute think tank, a typical senior who reported having a satisfactory retirement had $50,000 to $100,000 in savings. 

In the past, finance gurus have claimed that the average American should have $1.46 million or over 10 times their salary in savings to to be financially secure in old age.

But the Federal Reserve Board's latest study titled 'Survey of Household Economics and Decisionmaking' claims otherwise. 

According to Andrew Biggs, a senior fellow at the American Enterprise Institute think tank, a typical senior reported having a satisfactory retirement had $50,000 to $100,000 in savings

The survey asked retirement-age Americans: 'Overall, which one of the following best describes how well you are managing financially?'

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Out of the respondents aged 65 to 74, 3 percent said they were 'finding it difficult to get by,' 12 percent were 'just getting by,' 37 percent were 'doing OK' and 49 percent were 'living comfortably.' 

The Federal Reserve Board's researchers also asked, 'Approximately how much do you currently have saved for retirement?' with options ranging from 'less than $10,000' to 'more than $1 million.'

Out of those surveyed, only 19 percent said they had less than $10,000 while 86 percent people said they were either doing okay or living comfortably with $50,000 to $99,999 in their bank accounts. 

Biggs also noted that these amounts would be sufficient for a retiree as other sources of income, such as social security are far more beneficial than people realize and many could simply live off their security checks before even dipping into their own savings accounts. 

'Social Security benefits are more generous than people think. While hardly extravagant, a typical couple can expect an income more than twice the elderly poverty threshold before they touch a penny of their own savings.

'It’s impossible to find any evidence that seniors need even a fraction of $1.46 million in savings to be financially secure,' Biggs wrote in his Wall Street Journal column. 

The Federal Reserve Board concluded by the end of the study that the average American only needed anything between $50,000 and $99,999 to be 'doing ok' and $100,000 to $249,000 to 'live comfortably'

 Earlier last month, personal finance expert Suze Orman advised those looking to eventually retire to deposit all their money you can into a Roth IRA.

A Roth IRA is a type of Individual Retirement Account where you contribute after-tax dollars from your paycheck - and as money whiz Orman points out, all future withdrawals are tax free.

That's a great deal more financial freedom than that offered by other retirement plans, including a 401(k).

Those types of accounts are funded with pretax money, she adds - so your full dollar will have the opportunity to compound. 

At a time where every penny counts, the advice is more than welcome - and can give your money a much-needed boost.

'If you are not saving for retirement in a Roth, I think there's a good chance you are making a mistake,' former CNBC host Suze Orman told Benzinga, touting the specific type of retirement account

In terms of inheritance, heirs can inherit Roth accounts without the burden of income taxes, she said - not the case with cash or estates, of which Uncle Sam will always get a piece.  

This can be a significant advantage to those in a higher tax bracket, Orman pointed out - while telling Americans how to protect the wealth they worked hard to amass.

For the less fortunate, there are no current-year tax benefits, so your contributions - no matter how small - can grow tax-free. 

This can be done once the account has been open for five years, or after the account holder hits the age of  59½, Orman disclaimed,  while repeatedly touting the flexibility of Roth's no-penalty withdrawals.

A Roth 401(k) - only available through certain employers - is even better, she said.

The main difference between a Roth and traditional 401(k) is when taxes are applied, she added - detailing how in a traditional 401(k), contributions are made pre-tax, whereas in a Roth 401(k), contributions are taxed up front.