Key facts
- Americans believe they need $1.46 million to retire comfortably, up $200,000 from last year.
- High-net-worth individuals believe they need $2.67 million for retirement.
- Nearly half of Americans (46%) feel unprepared for retirement.
- 48% of Americans fear they will outlive their savings.
- Retirement needs vary by location, from $735,284 in Oklahoma to $1.5-$2.2 million in California, Hawaii, and Massachusetts.
- Fidelity recommends saving 15% of income annually to reach a target of 10 times annual income by age 67.
Americans' perceived need for comfortable retirement savings has increased significantly, with the average target now at $1.46 million, up $200,000 from the previous year, according to Northwestern Mutual's 2026 Planning & Progress Study. High-net-worth individuals estimate needing $2.67 million. This rise in perceived need comes as nearly half of Americans feel unprepared for retirement, and a similar percentage fear outliving their savings.
Other studies echo these figures, with Bankrate reporting 34% of workers expecting to need over $1 million, and Betterment finding 48% citing the $1 million mark. Clever Real Estate's 2026 report offers a lower average target of $823,800.
Retirement needs are heavily influenced by location. A GoBankingRates study indicates that residents of California, Hawaii, and Massachusetts may need between $1.5 million and $2.2 million, while Oklahoma requires a baseline of $735,284 for a comfortable retirement. Fidelity suggests a benchmark of saving 10 times one's annual income by age 67, recommending an annual savings rate of 15%.
Despite these challenges, there are signs of improving financial security, with 50% of Americans now feeling financially secure, up from 44% last year. However, 53% still worry about insufficient savings. The demographic of Baby Boomers approaching retirement faces particular hurdles, as over half of those turning 65 between 2024 and 2030 possess assets of $250,000 or less.