The “magic number” that Americans say they need to live comfortably in retirement is on the rise again, and it still remains beyond the reach of many people today.
Recently, Northwestern Mutual surveyed more than 4,300 adults for its 2026 Planning & Progress Study and asked them how much money they will need to save to retire comfortably.
Their magic number? A cool $1.46 million, on average.
That figure represents an increase of $200,000 from last year’s estimates — when the total cited was $1.26 million — and in line with 2024’s estimate.
In an announcement, John Roberts — chief field officer at Northwestern Mutual — says:
“The new ‘magic number’ reflects a convergence of factors — from persistent inflation and longer life expectancies to uncertainty about the future of Social Security. Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need. What matters now is pairing those expectations with a thoughtful, comprehensive financial plan that will enable them to reach their unique goals.”
The size of that magic number may be one reason that just under half (46%) of non-retirees feel they’ll be financially prepared for retirement. About the same number (48%) believe it’s somewhat or very likely they’ll outlive their savings.
Roberts says that’s why people need to account for several scenarios in retirement plans. He explains, “Many people assume their spending will naturally decline in retirement, but that’s not always how it plays out. Healthcare costs, longevity, and lifestyle choices can all influence spending patterns.”
How do you manage $1.46 million in savings in your golden years? Northwestern Mutual suggests a few rules to help folks:
- The 25x rule: Calculate your expected annual spending and multiply it by 25, then sock that money away. So $1.46 million in savings would generate roughly $58,000 in yearly retirement income.
- The $1,000-a-month rule: For every $1,000 you want to spend per month in retirement, you’ll need to save $300,000. For example, a $1.46 million nest egg will provide about $4,800 in monthly retirement income.
- The 4% rule: You can withdraw 4% of your retirement savings in the first year, and the same amount each year (after adjusting for inflation) for the next 30 years. That works out to roughly $58,000 in annual retirement income.
While $1.46 million is the magic number cited by survey respondents, Northwestern Mutual notes that the precise number can differ from person to person, based on when someone wants to retire, where they plan to live and the type of lifestyle they want to enjoy during their golden years.
Northwestern Mutual suggests that those saving for retirement should generally try to replace about 80% of their pre-retirement income.
If you would like to supercharge your retirement savings, check out our tips in “Pre-Retirement Checklist: What to Do Within 5 Years of Retiring.”
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