Americans Think $1.46M Is the Magic Number

Americans' best guess of what they'll need to retire comfortably is on the rise. The Wall Street Journal reports that a survey of 4,588 adults conducted by Northwestern Mutual put the magic number at $1.46 million; in last year's survey, they pegged the target at $1.27 million. That's a 15% increase, and a massive 53% jump from the $951,000 Americans thought they would need in 2020. But "the gap between our goals and reality has never been wider," as MarketWatch puts it: Those surveyed by Northwestern Mutual have saved an average of $88,400 for retirement. More standout numbers:

• The savings reality: USA Today reports Americans' retirement savings appear to be moving in the wrong direction: The figure reached a height of $98,800 in 2021. However, the Journal notes the Federal Reserve's figures are higher; it says the average American had $333,940 socked away in 2022, with households in the 65-to-74 age range having nearly double that.
• By generation: Baby boomers expect they'll need $990,000 to retire, while Millennials put the figure much higher, at $1.65 million. The survey found younger generations are getting a jump on savings: While Boomers started saving for retirement at the average age of 37, Millennials began at 27, while Gen Zers got things going at 22, per the survey.
• One rule of thumb: As for how much one really needs, the Journal flags Fidelity Investments' easy math: It recommends you save 10 times your salary by age 67. If your household pulls in $80,000 a year, that would mean having $800,000 saved. The assumption is that those savings would cover 45% of your income during retirement, with Social Security accounting for the rest. Should those benefits shrink, the formula would likely change.

(More retirement savings stories.)