Americans say they need an average of $1.46 million saved to retire comfortably, according to the 2026 Northwestern Mutual Planning & Progress Study.
The figure marks a $200,000 increase from last year’s estimate and returns to the level reported in 2024.
The survey of 4,375 adults points to persistent inflation, longer life expectancies, and uncertainty about the future of Social Security as key drivers behind the higher target. The study, released April 1 as part of Northwestern Mutual’s “4/01K Day” initiative, highlights a gap between expectations and current savings.
“The new ‘magic number’ reflects a convergence of factors—from persistent inflation and longer life expectancies to uncertainty about the future of Social Security,” said John Roberts, chief field officer at Northwestern Mutual. “Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need.”
Nearly half of respondents, 48%, believe it is somewhat or very likely they will outlive their savings.
Forty-six percent say they do not expect to be financially prepared for retirement.
The amount required varies sharply depending on when saving begins. A worker 35 years from retirement would need to save about $385 per month, assuming a 7% annual return, to reach roughly $1.46 million. Starting just 15 years out raises the monthly requirement to more than $4,600.
One-third of private-sector workers lack access to employer-sponsored retirement accounts such as 401(k)s.
Among Gen Z, millennials, and Gen X, 74% report struggling to save for retirement because of competing financial priorities.
The average Social Security retirement benefit in 2026 is approximately $2,071 per month after a 2.8% cost-of-living adjustment. Concerns remain about the program’s long-term solvency, with projections indicating potential benefit cuts without congressional action.
Researchers and financial advisers stress that individual needs differ based on lifestyle, location, and health. Starting early and maintaining consistent contributions remain central to closing the savings gap.
