Here’s the New Magic Number for Living Comfortably in Retirement

How much money will you need to retire? Your answer is likely to differ depending on the generation into which you were born.

Northwestern Mutual surveyed 4,588 adults for its latest annual Planning & Progress Study and asked them how much money they need to save to retire comfortably.

As a group, they said $1.46 million. That is up from $1.27 million in 2023 — and it also is much higher than the $88,400 the average respondent has actually saved for retirement to date.

However, the group average hides the fact that the specific dollar figure named by survey respondents varied quite a bit depending on their age.

From Generation Z to baby boomers, here are the new “magic numbers” that people say they need to achieve before retiring.

Generation Z

The average amount that survey respondents in this age group:

• Expect to need for a comfortable retirement: $1.63 million
• Have saved for retirement currently: $22,800

Members of Generation Z have a long road ahead before they retire. These young savers have accumulated just a fraction of the amount they say they will need to retire, which is only natural given their age.

Millennials

The average amount that survey respondents in this age group:

• Expect to need for a comfortable retirement: $1.65 million
• Have saved for retirement currently: $62,600

Millennials are at an age when for many workers, career prospects have brightened considerably. They have taken on more responsibility and have seen their pay rise as a result.

Some people start getting serious about investing for the first time during their 30s and early 40s. If you are among them, check out “5 Simple Ways to Invest Your Retirement Savings.”

Generation X

The average amount that survey respondents in this age group:

• Expect to need for a comfortable retirement: $1.56 million
• Have saved for retirement currently: $108,600

Members of Generation X still have years of work ahead of them. However, retirement also looms not too far over the horizon.

If you are a Gen Xer who wonders where you stand in the retirement savings marathon, check out “11 Retirement Funding Goals Everyone Ought To Hit by Age 50.”

Baby boomers

The average amount that survey respondents in this age group:

• Expect to need for a comfortable retirement: $990,000
• Have saved for retirement currently: $120,300

Compared with younger folks, there is a steep drop in the amount of money that baby boomers believe they will need to retire comfortably. Perhaps this is because many of these folks are in retirement already and are discovering expenses are lower than they feared they would be.

Or maybe boomers are simply in denial. After all, that is a natural response when you have only saved a tiny fraction — $120,300 — of what you project you might need during your golden years.

If you are a boomer who is still working but is far behind in building a nest egg, it’s time to turn to the “7 Fast Ways to Catch Up on Retirement Savings.”