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Key Takeaways The “magic number” for a comfortable retirement in the U.S. has jumped to roughly $1.46 million, up by $200,000 from last year.
The number is based on a survey of 4,375 U.S. adults, and reflects worries about inflation and longer life expectancies.
Meanwhile, the median retirement savings for people near retirement, ages 55 to 64, is just $185,000.
What does a dream retirement look like for most Americans?
A new report from financial services firm Northwestern Mutual shows Americans now think they will need $1.46 million to retire comfortably — up by $200,000 from last year.
The survey, which polled 4,375 adults, found that certain factors, such as rising prices, are driving that ideal retirement number higher.
“The new ‘magic number’ reflects a convergence of factors — from persistent inflation and longer life expectancies to uncertainty about the future of Social Security,” John Roberts, chief field officer at Northwestern Mutual, said in a statement. “Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need.”
The issue isn’t just that the retirement goal keeps getting higher — it’s that most people aren’t even close to reaching it. According to Federal Reserve data, the median retirement savings for Americans ages 55 to 64 is just $185,000. Americans ages 65 to 72 have a median retirement savings of only $200,000, or just 13% of what they think they will need to retire comfortably, per Northwestern Mutual.
The survey also found that almost half (48%) of Americans think it is somewhat or very likely that they will outlive their retirement savings.
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