Particle.news
Download on the App Store

Americans Now Say $1.46 Million Is Needed to Retire Comfortably

The higher target highlights rising costs that are outpacing many households’ savings.

Overview

  • Northwestern Mutual’s 2026 Planning & Progress Study, released Wednesday, finds the median target for a comfortable retirement at $1.46 million, about $200,000 higher than last year.
  • Most savers are far from that mark, with only 5% holding $1 million or more and the median balance for ages 55–64 at $185,000, according to data cited by CBS News from NerdWallet.
  • Experts tie the bigger number to persistent inflation and higher health and long‑term care costs, and low personal saving rates near 4.4% also make it harder to close the gap.
  • By the common 4% withdrawal rule, a $1.46 million nest egg yields roughly $58,000 a year before taxes, which is why planners urge personalized calculations that factor in Social Security and taxes.
  • Advice now centers on steady habits rather than a single figure, with Kevin O’Leary urging a 15% savings rate and a Forbes analysis cautioning against relying on a “magic number.”