U.S. adults now believe they need $1.46 million to retire comfortably, according to the 2026 Northwestern Mutual Planning & Progress Study. That is $200,000 more than the $1.26 million Americans estimated in 2025. The increase tops 15% in a single year and brings the figure back to the record level reported in 2024.
For people with more than $1 million in investable assets, the target climbs much higher. These high-net-worth Americans believe they need an average of $2.67 million for a comfortable retirement. The numbers sound huge, but they reveal something important about how Americans now view the cost and length of retirement.
Why Americans Think Retirement Will Cost $1.46M
Kampus / Pexels / Inflation is one reason the retirement magic number keeps climbing. Higher prices affect groceries, housing, insurance, travel, medical care, and almost every other part of a retirement budget.
Even modest annual price increases can make a major difference when savings must cover several decades.
Longer retirement periods add another challenge. Northwestern Mutual found that nearly half of Americans think they could outlive their savings. The concern reaches 48% overall, but it rises to 55% among Millennials and 50% among Gen Xers. That fear makes a larger nest egg feel less like a luxury and more like financial protection.
Social Security also creates uncertainty for many households. People may expect the program to provide part of their retirement income, but they do not always feel comfortable depending heavily on it. That uncertainty can push workers toward larger personal savings targets.
Plus there is also a basic timing problem. Retirement can easily last several decades for someone who stops working in their 60s. A portfolio that looks large on retirement day must keep paying bills through market declines, inflation, medical costs, taxes, and unexpected expenses.
The gap becomes clearer when broader Federal Reserve data enters the picture. The Fed’s 2022 Survey of Consumer Finances found that 54.3% of families held retirement accounts. Among families that had them, the median account value was $86,900, while the mean was $334,000. Those figures remain far below the new $1.46 million retirement target.
A separate 2026 Clever Real Estate survey of 1,000 retired Americans found another striking gap. Respondents had an average of $288,700 in savings and investments, while 29% reported having no retirement savings at all.
More Americans Expect to Work During Retirement
For many people, retirement may no longer mean leaving work completely at age 65. Northwestern Mutual found that 41% of Americans already work or expect to work during their retirement years. That share reaches 50% among both Millennials and Gen Xers.
Some people want work to provide structure, purpose, or social contact. Money also matters. Extra income can reduce pressure on retirement accounts, cover rising expenses, and allow investments more time to grow. For workers who started saving late, several additional working years can make a meaningful difference.
Gen X faces particular pressure because many members of the generation are approaching retirement now. Northwestern Mutual found that 20% of Gen Xers say financial concerns have already caused them to delay retirement. Only 49% believe they will be financially prepared when retirement arrives.
Professional planning also appears alongside different retirement expectations, although the survey does not prove that an advisor causes better outcomes. Americans with a financial advisor expect to retire at 63.7 years old on average, compared with 66.1 among people without an advisor. About 74% of those with an advisor believe they will be financially prepared, compared with 43% of people without one.
Do You Really Need $1.46 Million to Retire?
Mart / Pexels / The $1.46 million figure reflects what surveyed Americans believe they need on average. It is not a required retirement balance, and Northwestern Mutual itself says there is no universal number that works for everyone.
Your target depends on your spending, retirement age, location, housing costs, Social Security benefits, pensions, taxes, healthcare needs, and expected lifestyle. Someone with a paid-off home and modest expenses may need much less than someone planning frequent travel in an expensive city.
Several common formulas can provide a starting point. The 25x rule suggests saving about 25 times your expected annual retirement spending. A person expecting to spend $58,000 each year would need roughly $1.45 million under that simple calculation.
