Finance

There’s a new ‘magic number’ Americans say they’ll need to retire comfortably and it rose sharply yet again — what it is and how to stay ahead of it

Moneywise · Jul 21, 2026 20:35 · 8 min read

Americans now think they'll need $1.46M to retire

Take action before your financial future goes up in smoke.

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Americans’ retirement dreams just got a little more expensive.

The amount people believe they need to retire comfortably, often called the retirement “magic number,” has climbed to $1.46 million in 2026, according to a new study from Northwestern Mutual — that’s a $200,000 jump from last year (1).

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The research comes at a time when many Americans are already feeling uneasy about their financial future.

And with people living longer than ever, the challenge isn’t just saving enough money to retire; it’s making sure that money lasts for decades after they stop working.

Retirement targets are going up

According to Northwestern Mutual’s 2026 Planning & Progress Study, the current estimate of $1.46 million matches the record-high level recorded in 2024.

The survey of U.S. adults found that almost half (46%) don’t think they’ll be financially ready for retirement when the time comes. Meanwhile, 48% say it’s somewhat or very likely they’ll outlive their retirement savings.

A significant 27% of Americans surveyed believe they could live to age 100. On average, Americans say they plan on retiring at age 65 — which would mean a retirement that could last 30 years or more.

Half of Gen X respondents worry they could outlive their savings, while 20% say financial concerns have already forced them to delay retirement.

The study also found about 41% of Americans say they already work or are planning to work during retirement, including half of Millennials and Gen Xers.

That decision is about staying active and engaged for some, but for many others, it’s about finances. Nearly half of the respondents who expect to work in retirement say they’ll need the income to afford their desired lifestyle.

Another growing concern is the future of Social Security.

One-third of Americans identified the question “Will Social Security be there when I qualify for it?” as one of their biggest retirement worries.

With rising retirement targets and growing uncertainty about future income sources, financial experts say focusing solely on hitting a specific savings number may not be enough.

How to make sure your retirement savings last

The good news is that a $1.46 million retirement target isn’t necessarily as intimidating as it sounds.

Savers can consider focusing less on a single “magic number” and more on building a realistic plan based on their expected spending, income needs and retirement goals.

To help figure out how much you may need, Northwestern Mutual points to a few retirement strategies.

One is the 25x Rule, which suggests saving roughly 25 times your expected annual retirement spending. Under that formula, someone who expects to spend about $58,000 a year in retirement would need approximately $1.46 million saved.

Another guideline is the $1,000-a-month rule, which estimates that every $1,000 of monthly retirement income requires roughly $300,000 in savings. Using that calculation, a $1.46 million nest egg could generate around $4,800 in monthly retirement income.

There’s also the traditional 4% rule, which suggests retirees may be able to withdraw 4% of their savings in their first year of retirement and adjust that amount for inflation over the following decades.

But Northwestern Mutual cautions that rules of thumb are only starting points. There are other factors to consider such as rising healthcare costs, long-term care needs, taxes or legacy planning goals.

Here are some additional strategies that can help stretch retirement savings over the long haul.

Maximize retirement account contributions.

The IRS increased 401(k) contribution limits to $24,500 for 2026, giving workers an opportunity to shelter more money from taxes while building long-term wealth.

But boosting your retirement savings is only part of the equation. It's also worth paying attention to where that money is invested. If most of your nest egg is tied up in stocks — particularly large technology companies that have driven much of the market's recent gains — your portfolio is vulnerable as investor sentiment shifts (2).

Adding assets that behave differently from stocks can help reduce overall portfolio risk.

Gold has historically provided diversification because it doesn’t always rise and fall alongside the broader stock market, making it a potential hedge during periods of uncertainty.

Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical form while also providing the significant tax advantages of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

Pay down high-interest debt before retirement

Carrying credit card balances into retirement can quickly drain savings.

The National Foundation for Credit Counseling recommends tackling expensive debt as early as possible to reduce future financial pressure (3).

That's become a growing problem for many households. TransUnion reports that the average American owed $6,715 in credit card debt in December 2025 (4), while average interest rates on unpaid balances topped 25% as of July 6, 2026 (5).

Those rates can quickly snowball. Even consistent monthly payments may barely chip away at the principal if most of the payment is going toward interest.

If you're juggling several credit card balances, consolidating them into a single personal loan through Credible could simplify repayment with one fixed monthly payment while potentially lowering your interest costs.

Credible lets you comparison-shop for the lowest interest rates with just a few clicks. In less than three minutes, you’ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.

With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.

If you’re eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.

Build an emergency fund

According to the Consumer Financial Protection Bureau, emergency savings can help retirees avoid withdrawing from investments during market downturns or relying on costly debt when unexpected expenses arise (6).

That's one reason personal finance expert Suze Orman recommends retirees keep three-to-five-years' worth of living expenses in readily accessible savings. If markets experience a major crash, that cushion may provide enough time for investments to recover before withdrawals become necessary.

Use a high-yield account

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s ten times the national deposit savings rate, according to the FDIC’s March report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/monthly minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks.

Plan for healthcare expenses

Healthcare remains one of the largest retirement costs.

Fidelity estimates that the average retiree may need roughly 15% of their retirement income to cover medical expenses not paid by Medicare (7).

Consider delaying Social Security

The Social Security Administration notes that monthly benefits increase for workers who delay claiming beyond full retirement age, up to age 70. While delaying benefits can produce larger monthly checks, those payments may also be taxable (8).

With this in mind, there's no universal "best" age to file. The right decision depends on factors like your health, retirement savings, tax situation and expected income throughout retirement.

A financial advisor can help evaluate your retirement income, tax situation and long-term goals to determine the right time to claim Social Security. They can also build a plan that's less dependent on government benefits, particularly as questions continue to circulate about the potential depletion of the Social Security trust fund by 2032 (9).

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.

From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

- With files from Jessica Wong.

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There’s a new ‘magic number’ Americans say they’ll need to retire comfortably and it rose sharply yet again — what it is and how to stay ahead of it

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