Americans Say They Need $1.46 Million to Retire—Few Are Anywhere Near It

A new survey shows retirement expectations soaring while actual savings remain shockingly low for most workers.

BY LEILA SHERIDAN, NEWS WRITER

Americans believe they now need significantly more money to retire comfortably. For most, however, that goal is moving further out of reach. 

The latest “magic number” for retirement savings has climbed to $1.46 million in 2026, up roughly $200,000 from last year, according to a new study from Northwestern Mutual. The increase reflects a growing sense of financial unease driven by persistent inflation, longer life expectancies, and rising uncertainty about how technologies like artificial intelligence could reshape the job market.

Expectations Are Rising

“Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need,” John Roberts, the firm’s chief field officer, said, according to MarketWatch. He noted that while the figure may seem high, it’s more a reflection of perception than precise calculation, a barometer of how Americans feel about their financial security rather than a definitive target.

That perception is shifting quickly. Among high-net-worth individuals, the expected savings requirement is even higher, averaging $2.67 million, MarketWatch reported. At the same time, nearly half of Americans—46 percent—say they do not expect to be financially prepared for retirement at all, based on a January survey of more than 4,300 adults, according to USA Today.  

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Several forces are pushing these totals upward. Years of cumulative inflation have increased the cost of everything from housing to healthcare, while longer lifespans mean savings must stretch further than ever. A 65-year-old retiring today can expect to spend an average of $172,500 on healthcare alone throughout retirement, according to Fidelity Investments.

There are also broader economic anxieties at play. “People are worried about the impact of AI on their career, as well as geopolitical uncertainties,” Roberts said. “There’s a lot of pressure on the consumer.”

Most Americans Don’t Meet Their Own Benchmarks

And while expectations are rising, actual savings tell a very different story. The median retirement savings for American workers is just $955 when including those with no savings at all, according to the National Institute on Retirement Security. Even among workers who have set money aside, the median balance is only $40,000, far short of the $1.46 million target.

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