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How much money do you need to retire? The number keeps rising

Americans now think they need at least $1.46 million, according to a study

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Photo by Towfiqu Barbhuiya on Unsplash

Key Insights

  • Americans now believe they will need $1.46 million to retire comfortably, a more than 15% increase from last year.
  • The “magic number” rose by about $200,000 year over year, reflecting inflation, longevity, and economic uncertainty.
  • Nearly half of Americans worry they will outlive their savings, underscoring a widening gap between expectations and preparedness.

How much money do you need to retire? The more Americans think about it, the higher the number goes.

According to a new Northwestern Mutual Planning & Progress Study, the average “magic number” has risen to $1.46 million. The average preretiree’s savings are minuscule in comparison.

Not surprisingly, the retirement “magic number” has jumped more than 15% from last year, increasing by roughly $200,000 as financial pressures mount. 

The latest data highlight how inflation, longer life expectancies, and uncertainty around Social Security and the broader economy are reshaping retirement expectations. 

Despite the rising target, many Americans remain far from reaching it. Nearly half say they do not expect to be financially prepared for retirement, reflecting a persistent gap between savings goals and actual progress.

Why a long life could be a problem

The study also found widespread concern about longevity risk. About half of the respondents believe it is at least somewhat likely they will outlive their savings, reinforcing anxiety about whether retirement funds will last. 

Generational differences remain pronounced. Younger Americans, including millennials and Gen Z, tend to estimate they will need even more than the national average, while older adults report lower targets but greater concern about readiness. 

Economic conditions are a key driver of these higher expectations. Persistent inflation has raised the cost of living, while health care expenses and longer retirements continue to push savings targets upward. 

Financial advisors say the findings underscore the growing complexity of retirement planning. Traditional benchmarks — such as replacing a percentage of pre-retirement income — may not fully account for unpredictable costs, leaving many Americans unsure how much is enough.