Americans now think they'll need $1.46 million to retire comfortably, up $200,000 from last year, as retirement anxiety grows.
Your actual retirement target depends on your spending, lifestyle, retirement age, and other income.
Calculate your own number instead, using rules like 25x or 4%, then factor in Social Security, pensions, and other expected income.
How much money do you need to retire comfortably? According to Americans, the answer is now $1.46 million.
That's the average amount U.S. adults believe they'll need for a comfortable retirement, according to Northwestern Mutual's 2026 Planning & Progress Study. The number jumped $200,000 from last year's $1.26 million, an increase of nearly 16%, and returned to the same $1.46 million estimate reported in 2024.
The survey also reveals plenty of retirement anxiety. Nearly half of Americans (46%) don't expect to be financially prepared for retirement, while 48% believe they're somewhat or very likely to outlive their savings.
But before you look at your 401(k) balance and panic, there's something important to understand: You don't necessarily need $1.46 million to retire.
Your retirement number is personal
The $1.46 million figure isn't a recommendation. It's what surveyed Americans believe they'll need.
Northwestern Mutual itself says there is no universal retirement number. How much you'll actually need depends on factors including when you retire, where you live and the lifestyle you want. The company suggests replacing roughly 80% of your pre-retirement income as one starting point.
In other words, someone who owns a paid-off home and plans a relatively inexpensive retirement may need considerably less than someone carrying a mortgage and planning to travel extensively.
Instead of obsessing over $1.46 million, calculate a target based on your spending.
Three quick ways to estimate your number
The study offers several useful rules of thumb.
Try the 25x rule. Estimate how much you'll need to spend each year in retirement and multiply it by 25. If you expect to need $50,000 annually, for example, that produces a savings target of roughly $1.25 million.
Use the $1,000-a-month rule. Northwestern Mutual says every $1,000 of desired monthly retirement spending translates to roughly $300,000 in savings. So $4,000 per month would point toward about $1.2 million.
Consider the 4% rule. This rule suggests withdrawing 4% of your savings during your first year of retirement, then adjusting that dollar amount for inflation in subsequent years. At $1.46 million, that translates to roughly $58,000 in first-year withdrawals. These are rules of thumb rather than guarantees, and actual results depend on factors such as investment returns and how long you live.
Don't forget income you'll already have
Your retirement savings don't necessarily have to pay every bill. When estimating how much you'll need from your nest egg, don’t forget about your expected income such as Social Security or a pension.
Start with your estimated monthly retirement expenses, subtract the income you know you’ll be getting, then you can determine how much of your savings you’ll need to fill the gap.
By doing it this way, you’ll get a much more useful number than simply aiming for $1.46 million because a survey says so.
More Americans expect to keep working
One finding from the study also suggests retirement itself is changing.
About 41% of Americans say they're planning to work or are already working during retirement. Among millennials and Gen X, that figure reaches 50%.
Money isn't the only reason. While 47% say they'll need the additional income to afford retirement, 56% say working will help them continue feeling useful or stimulated.
What to do now
Rather than getting intimidated by a seven-figure national average, take 15 minutes and calculate your own number.
Estimate your annual retirement expenses, subtract expected Social Security and other reliable income, then use a rule such as 25x to establish a rough savings target.
Then compare that number with what you're currently on track to save. If there's a gap, the solution doesn't have to be finding another million dollars overnight. Increasing your retirement contribution even a few percentage points, capturing your full employer 401(k) match, reducing expected retirement expenses or working a little longer can all change the math.