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Americans Raise Retirement ‘Magic Number’ to $1.46 Million as Planning Shifts to Income

New analysis highlights the move from chasing a lump sum to building income that survives market swings.

Overview

  • The $1.46 million figure, reported Tuesday in Northwestern Mutual’s 2026 study, is up roughly 15% from last year’s $1.26 million.
  • Surveys show rising anxiety about outliving savings, with about 40% to 48% of adults saying they may fall short of what they need to retire.
  • Retiring before 65 creates a health insurance gap before Medicare, and typical individual premiums for a 61‑year‑old run about $700 to $1,000 per month before subsidies.
  • Advisers flag sequence‑of‑returns risk for new retirees and recommend cash buffers covering several years, delaying Social Security for larger checks, and keeping spending flexible.
  • Many savers lag far behind the target, as only about half of households under 35 have retirement accounts and the typical balance is roughly $18,800.