retirement is getting more expensive in the eyes of Americans, with a new survey showing the amount they believe they need to retire comfortably has climbed sharply. Northwestern Mutual said Wednesday that the “magic number” rose to $1. 46 million, up $200, 000 from a year earlier. The increase comes as many Americans say they are uneasy about whether they will be ready for retirement at all.
The new retirement target is higher
Northwestern Mutual said the latest figure reflects answers from 4, 375 adults and marks a rise that tracks broader anxiety about the future. The firm said the new number is close to the estimate from 2024, but still represents a meaningful jump in what households think they need to save for retirement.
For people with at least $1 million in investable assets, the average “magic number” is even higher at $2. 67 million. The report also said 46% of Americans do not expect they will be financially prepared for retirement, while 48% said it is somewhat or very likely they will outlive their savings.
Why the number keeps moving
John Roberts, chief field officer at Northwestern Mutual, said the higher figure reflects “a convergence of factors” including persistent inflation, longer life expectancies, and uncertainty about the future of Social Security. He said retirement is becoming more complex and that Americans are responding by setting higher expectations for what they will need.
The report said Northwestern Mutual recommends planning to replace about 80% of pre-retirement income. It also pointed to the “25x rule, ” which suggests saving about 25 times expected annual expenses. Using the new $1. 46 million figure, that would translate to roughly $58, 000 in annual retirement income, the report said.
What Americans are saving now
The gap between the target and current savings remains wide. The report said just 23% of Americans with retirement savings have one year or less of current income set aside. In other words, many households say they are still far from the level they believe would support retirement.
The newest retirement number matters because it highlights how expectations are moving even as financial pressures remain high. The result is a tougher planning landscape for workers at every stage of their careers, especially those who feel they are already behind.
Immediate reaction from Northwestern Mutual
Roberts said Americans are adapting to a more difficult planning environment by raising their expectations. “Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need, ” he said. That warning lands at a time when many households are already worried about whether they can afford retirement at all.
What happens next
The report does not give a universal retirement target, and that is part of the message: the figure depends on each person’s income, savings, and timeline. Still, the climb to $1. 46 million suggests retirement planning is becoming a bigger stress point for Americans, and the pressure to save more is likely to stay high. For anyone tracking retirement, the latest survey is a stark reminder that expectations are rising faster than comfort.
