This is Exactly How Much Americans Think They'll Need to Retire.

How much do you need to have saved for retirement? Everyone needs to answer this question because Social Security alone replaces only about 40% of preretirement income. That's generally not enough to live on without major lifestyle changes.

A recent survey asked Americans about this issue, and the amount that the average American thinks they'll need may surprise you. Let's take a look at what Americans think they'll need, along with some tips on figuring out how to tell if it will be enough.

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How much do Americans think they need to have saved for retirement?

According to the 2026 Northwestern Mutual Planning and Progress Survey, Americans believe that they will need $1.46 million to retire. This is in line with the amount Americans expected they'd need in 2024. However, it is higher than the $1.26 million amount that Americans in 2025 said they'd need.

Northwestern Mutual's chief field officer indicated that the $200,000 increase in perceived retirement savings needs from 2025 to 2026 is likely driven, in part, by changing expectations about life expectancy. Concerns about Social Security's financial solvency, as well as worries about continued high inflation, may also have prompted Americans to increase their estimate of how much they'll need in their retirement plans.

Is a $1.46 million nest egg a reasonable goal?

The big question, of course, is whether Americans are right about $1.46 million being a good goal. If you have this much in your 401(k) or other retirement account, can you retire without financial worries?

The answer isn't so straightforward. Some people could retire with much less, and others need much more. It's all about the income you want to replace. If you follow the 4% rule, you could withdraw 4% in your first year of retirement from a nest egg of $1.46 million. That would provide you with around $58,400 in income from your investments.

If you can live on that amount, especially when combined with Social Security, then you should be in good shape. But if you can't live on that income without debt or major lifestyle changes you aren't planning to make, then your goal needs to be more ambitious. And, as you decide whether you can live on that number, don't forget to take taxes into account, as well as health insurance costs if you are planning to retire before you're Medicare eligible.

If you think $58,400 in investment income won't be enough, you can figure out how much will be enough by multiplying your desired income amount by 25. If you think you'll need $80,000, for example, your nest egg would need $2 million. Do this calculation to see how much you personally need to save so you can end up with the retirement security you deserve.

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