A comfortable retirement is getting more expensive. Americans say they expect to need an average of $1.46 million to retire on their own terms, up $200,000 from a year ago, according to a new survey from Northwestern Mutual.
The 2026 survey identified Gen X as the generation most anxious about retirement, with 51% of respondents in that age group saying they don't expect to be financially prepared for retirement and 20% saying they have already delayed retirement due to financial challenges or other concerns.
The survey was fielded in January, before the start of the war in Iran and subsequent spike in gas prices, but "persistent inflation" was certainly a factor in respondents' estimates of their "magic number" for retirement, according to John Roberts, chief field officer at Northwestern Mutual, who also cited concerns about Social Security and the fact that Americans will have longer retirements to fund as life expectancies increase.
"Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they'll need," Roberts says.
Retirement goals might seem out of reach for many Americans at the moment. The survey found that 46% of respondents say they don't think they will be financially ready for retirement when the time comes, and 48% say that it is somewhat or very likely that they will outlive their savings.
The poll canvassed 4,375 U.S. adults 18 or older from Jan. 5 through Jan. 21. Responses varied with factors such as participant's wealth and age, but the results indicated a widely felt sense of anxiety about retirement readiness.
The proportion of respondents who say they aren't likely to be finanicially ready to retire held steady with last year's survey, though the "magic number" was substantially lower a year ago. In 2025, respondents said they anticipated needing an average of $1.26 million to retire comfortably. In 2024, that figure was $1.46 million, the same as this year's while in 2023, it was $1.27 million.
Gen Z was the youngest generation surveyed, expressed the most confidence in their retirement plans, with 58% saying they anticipated being able to afford to retire comfortably. Gen Zers, on average, say they started saving at 22 and aim to retire at 61. Gen Xers, in contrast, began saving at 32 and expect to retire at 67. Thirty-two percent of Gen Zers polled and 22% of Gen Xers said they believe it is likely they will live to 100.
"These figures paint a picture of retirement that may stretch 30 to 40 years or longer," Roberts says, observing that "planning for longevity isn't just about accumulating more," but also extends to generating income, managing risk, and other factors. "As people plan to live longer, their money needs to work longer, too."
This Barron's article was legally licensed by AdvisorStream.
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