Americans Say You Need $1.46 Million to Retire—Here’s Why Most Are Nowhere Close

Let’s be honest—figuring out how much you need to retire can feel like a moving target. Between rising living costs, longer lifespans, and unpredictable markets, it’s no surprise that more and more Americans are adjusting their retirement goals. And based on the latest data, those goals are getting a lot higher.

The “Magic Number” in 2024: $1.46 Million

According to the 2024 Northwestern Mutual Planning & Progress Study, Americans now say they’ll need around $1.46 million to retire comfortably. That’s not a small number—and it’s about 15% higher than what people said just last year. Compared to 2020, it’s gone up more than 50%.

Why such a big jump? Inflation’s part of it, along with growing concerns about healthcare costs and people living longer than ever before. The reality is, retirement just seems more expensive than it used to.

But here’s the problem…

What People Actually Have Saved: $88,400

That’s the average amount Americans have saved for retirement. Just under $90k. When you stack that up next to the $1.46 million people think they’ll need, it’s easy to see there’s a huge gap.

This is the kind of disconnect that keeps people up at night. Most folks are dreaming of a retirement that, right now, their bank accounts just aren’t ready for.

What Each Generation Thinks They’ll Need

Everyone’s idea of “comfortable” is different, but here’s how it breaks down by generation:

• Younger generations—Gen Z and Millennials—say they’ll need more than $1.6 million.

• Gen X is aiming for around $1.56 million.

• Baby Boomers are a bit more modest, estimating closer to $990,000.

• High-net-worth individuals? They’re planning for nearly $4 million.

That range says a lot. Younger people are planning for longer retirements and more uncertainty. Boomers are closer to retirement, so they may be working with more defined numbers. And the wealthier folks? They’re preparing to maintain a certain lifestyle.

Is There Really a Perfect Number?

Not really.

Most financial advisors will tell you that there’s no one-size-fits-all number. It all depends on the kind of life you want to live in retirement. Things like where you live, how long you expect to live, your health, your family situation—it all plays a role.

A common rule of thumb comes from Fidelity, which suggests saving about ten times your salary by the time you hit 67. So if you make $75,000 a year, your target should be somewhere around $750,000. Still a big number, but more manageable than $1.5 million.

How to Start Getting There

Whether you’re 25 or 55, here are a few practical things you can do to close the gap:

1. Start Early, Even if It’s Small
   The earlier you start saving, the more your money grows through compound interest. Even small contributions add up over time.

2. Stay Consistent
   Treat saving like paying a bill. Make it automatic if you can, so you don’t have to think about it every month.

3. Invest Wisely
   Leaving all your money in a savings account isn’t going to get you there. A balanced mix of stocks, bonds, and other assets gives you a better shot at long-term growth.

4. Check In Regularly
   Life changes. So should your retirement plan. Revisit your goals every year and make adjustments if needed.

5. Talk to Someone Who Knows Their Stuff
   A certified financial planner can help you create a strategy that fits your life and your goals.

If You Want to Learn More

If you’re interested in diving deeper, there are some great books that explain retirement planning in everyday language:

• The Retirement Planning Guidebook – A detailed guide for people who want to cover all the bases.

• The 5 Years Before You Retire – Ideal if retirement is just around the corner.

• How Much Money Do I Need to Retire? – Straightforward and beginner-friendly.

Retirement isn’t just about a dollar amount—it’s about feeling secure, having options, and being able to live the kind of life you want without stressing about money. That $1.46 million figure might be the average, but the right number for you depends on your life, your values, and your goals.

What matters most is that you start planning now. The sooner you take control of your financial future, the better chance you’ll have of building the retirement you actually want.