Each year, Northwestern Mutual publishes a survey that determines how much money the average American will need to enjoy a comfortable retirement . The 2026 edition of the report has just been released, and according to the company's findings, Americans will need to set aside an additional $200,000 if they want to live comfortably in retirement .
Unfortunately, many of the people surveyed say that it will be an impossible feat, especially when looking at the new "magic number" that Northwestern Mutual says you'll really need if you want to be able to avoid working in retirement . Honestly, I can't see myself ever saving up this much money, even if I had started decades ago.
The 'Magic Number' Americans Need in Retirement Has Increased
According to a press release from Northwestern Mutual, the new magic number Americans need to retire is $1.46 million. This is an increase from last year's estimates, and falls more in line with what the financial experts say in 2024. The report included the past five years of its findings, which broke down to the following "magic numbers" by year:
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2025 was $1.26 million
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2024 was $1.46 million
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2023 was $1.27 million
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2022 was $1.25 million
"The new 'magic number' reflects a convergence of factors—from persistent inflation and longer life expectancies to uncertainty about the future of Social Security," John Roberts, chief field officer at Northwestern Mutual, said in a statement. "Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they'll need. What matters now is pairing those expectations with a thoughtful, comprehensive financial plan that will enable them to reach their unique goals."
Americans are Not Prepared to Save Enough for Retirement
According to the press release, Northwestern Mutual says most people will need to replace about 80 percent of their pre-retirement income after leaving the workforce. However, 23 percent of the people surveyed said they have only about 1 year's worth of income saved so far.
As expected, the figures break down differently depending on the generation, and Northwestern says that Gen Xers feel fairly prepared for retirement, with 49 percent saying they will be financially ready when the time comes. Meanwhile, 55 percent of Millennials and Boomers say the same.
Related: 1 in 4 Americans Are Doing This Unfortunate Move With Their Retirement Savings—Are You?
Gen Z seems to feel the most prepared, though, and 58 percent of that age group says they think they'll be in good shape when the time comes. However, half of Millennials and Gen X believe they will work through their retirement, highlighting a deeper insecurity about what the future will hold for the next two generations in line for retirement. That being said, it's not too late to catch up on your retirement savings. Talking to a certified financial advisor about your retirement goals and how you can save enough money to achieve them is one of the best ways to determine the steps you can take to prepare.
This story was originally published by Parade on Apr 2, 2026, where it first appeared in the Life section. Add Parade as a Preferred Source by clicking here.
