Americans now believe they need $1.46 million to retire comfortably, a figure that has increased by $200,000 from last year. New survey data also shows that many workers remain concerned about whether they will be financially prepared for retirement and whether their savings will last throughout their later years.
The findings reflect a period in which inflation has eased from the peaks recorded in recent years, while the cost of many everyday necessities remains elevated. As households continue to navigate higher expenses for housing, healthcare, food, insurance, and energy, retirement planning is becoming a growing source of uncertainty.
According to Northwestern Mutual’s 2026 Planning & Progress Study, based on 4,375 online interviews conducted in January 2026, the average amount Americans believe they need to retire comfortably reached $1.46 million. That figure matches the level reported in 2024 and follows a lower estimate of $1.26 million in 2025.
Retirement Concerns Remain Widespread
The survey found that 46% of Americans do not expect to be financially prepared for retirement when the time comes. At the same time, 48% believe it is somewhat or very likely that they could outlive their savings.
Consumer finance expert Erica Sandberg told Newsweek that rising prices often influence how people think about long-term financial goals. She noted that households tend to react quickly when they see higher costs for routine expenses such as fuel and groceries, creating pressure on budgets and increasing awareness of future financial needs.
Sandberg said the additional $200,000 many Americans now associate with retirement readiness may reflect broader concerns about the rising cost of living rather than a precise financial calculation. She described the increase as representative of what many people are experiencing in their daily finances.
Certified financial planner John Ehrenfeld of Your Path Wealth Management also pointed to inflation and economic uncertainty as factors likely influencing retirement expectations. According to Ehrenfeld, concerns related to inflation, tariffs, grocery costs, and oil prices may be contributing to renewed anxiety about future expenses.
Northwestern Mutual’s data further showed that nearly one-quarter of respondents with retirement savings have accumulated one year or less of their current annual income. Gen X respondents reported some of the greatest challenges. One in respondents said financial difficulties had already delayed retirement plans, while 26% reported not having started retirement savings at all.
Longer Life Expectancy Adds Another Challenge
The study also highlighted concerns linked to longevity. On average, Americans reported beginning retirement savings at age 31 and planning to retire at age 65. Meanwhile, 27% believe they are likely to live to age 100. Among Generation Z respondents, that figure rises to 32%.
Ehrenfeld said uncertainty plays a major role in concerns about retirement security. He noted that when people fear running out of money, they often respond by continuing to work, save more, and reduce spending.
The survey found that 41% of Americans either plan to work or are already working during retirement. Among Millennials and Gen X, the proportion reaches 50%. The most frequently cited reason was a desire to remain useful or stimulated, though financial motivations were also common.
Both experts emphasized that retirement goals vary widely among individuals. According to Sandberg, averages can be misleading because retirement needs depend on personal circumstances and lifestyle expectations. Ehrenfeld similarly argued that retirement outcomes often depend less on reaching a specific savings figure and more on managing spending effectively over time.
