What it takes to retire comfortably in America: Nearly $1.5 million, Northwestern Mutual says

Year-round warm weather, hitting the links, and kicking back with the grandkids has long been the quintessential American retirement daydream. While that’s still out of reach for many Americans, most still hope and expect to retire comfortably after 40-plus years in the workforce. 

But what exactly does an ideal retirement look like for Americans? According to a Northwestern Mutual report released this week, Americans think they need $1.5 million to retire comfortably. That’s a $200,000 jump from last year, showing it’s climbing faster than most workers can even save. 

The study, based on a survey of 4,375 adults, found that inflation, longer life expectancies, and growing anxiety about the future of Social Security are all pushing the ideal retirement figure higher.

“The new ‘magic number’ reflects a convergence of factors—from persistent inflation and longer life expectancies to uncertainty about the future of Social Security,” John Roberts, chief field officer at Northwestern Mutual, said in a statement. “Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need.”

The gap between expectation and reality

The problem with retirement savings isn’t just that the target is high. It’s that most Americans are way off from hitting it. 

Federal Reserve data show that the median retirement savings for Americans aged........

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