Americans say this is their savings "magic number" to retire comfortably
CBS News • • business
Key Points:
- A Northwestern Mutual survey found that Americans believe they need $1.46 million to retire comfortably, up from $1.26 million in 2025, reflecting inflation concerns and rising living costs.
- Job security fears related to artificial intelligence are influencing some Americans to aim for larger retirement savings, with 33% expressing worry about AI's impact on their careers.
- Despite these perceptions, only 5% of Americans with retirement accounts have saved at least $1 million, and the median savings for those aged 55 to 64 is just $185,000.
- Retirement contributions are declining, with average 401(k) contributions dropping from 9.2% to 8.9% in 2024, indicating a gap between acknowledged needs and actual saving behavior.
- Many Americans face unexpected expenses and hardship withdrawals before retirement, which depletes savings and challenges the assumption that future retirees can "live lean."
