Overview
- Northwestern Mutual, which released its Planning & Progress survey on Wednesday, said respondents put the comfortable retirement target at $1.46 million, about $200,000 higher than in 2025.
- Most households fall short of that mark, with only about 5% holding $1 million or more and the median for ages 55 to 64 at $185,000, while Social Security pays about $2,070 a month on average.
- Company leaders and outside analysts tied the bigger target to stubborn inflation and higher medical and long term care costs, including an estimated $345,000 in lifetime health expenses for a retired couple.
- Planners cautioned that rules of thumb like the 4% withdrawal rule or saving 10 times income are only guides and urged plans that convert assets into monthly income and account for taxes and required withdrawals at 73.
- The survey also shows differences by generation, with many Gen X savers behind their targets and more Gen Z workers starting earlier and feeling readier for retirement.