‘Magic Number’ for Retirement Drops With Inflation
April 23, 2025 by Ted Godbout
Americans’ “magic number” to retire comfortably in 2025 is $200,000 less than last year. After a considerable jump from the previous year, this year’s figure is comparable to those of 2023 and 2022.
According to Northwestern Mutual’s 2025 Planning & Progress Study, the amount that Americans believe they will need to retire comfortably in 2025 is $1.26 million, down from $1.46 million in 2024, and on par with the $1.27 million and $1.25 million cited in 2023 and 2022, respectively.
The findings are based on an online survey conducted by The Harris Poll among 4,626 U.S. adults with an oversample of 13 different U.S. markets between Jan. 2–19, 2025, with data weighted to be representative of the U.S. general population.
Wink’s Moore on the Market: How much do you need, to retire comfortably?
I think the response is “that depends.”
“According to Northwestern Mutual’s 2025 Planning & Progress Study, the amount that Americans believe they will need to retire comfortably in 2025 is $1.26 million, down from $1.46 million in 2024.”
Interestingly, “Americans’ ‘magic number’ to retire comfortably has come down — but it remains high, far beyond what many people have actually saved.”
“…the level of concern about their current savings has increased. In fact, more than half of Americans believe outliving their life savings is a real possibility, and the vast majority are living with financial anxiety. “
I’d love to see annuities mentioned, but this IS coming from a mutual insurer with participating whole life as their bread and butter…
And still, this Northwestern Mutual study is fascinating. Check it out! -sjm
