Here’s the New Magic Number for Living Comfortably in Retirement

How much money do you need to live your best retirement life? In truth, there is no one-size-fits-all number. But that doesn’t mean Americans aren’t willing to hazard a guess.

Recently, Northwestern Mutual surveyed 2,381 adults for its 2022 Planning & Progress Study and asked them how much money they will need to save to retire comfortably.

Their magic number? A cool $1.25 million, on average.

That figure represents a 20% jump from the approximately $1.05 million retirees said they needed to retire comfortably when asked the same question in 2021. It is likely that the inflation surging through the economy in 2022 impacted their higher answer.

Saving more than $1 million is no small feat, and many of the survey respondents are pessimistic about reaching such a lofty goal. When asked if they think they will be financially ready to retire when the time comes, 43% answered “no.”

Despite such worries, more than one-third of respondents — 36% — admitted they have not taken any steps to address the possibility that they might outlive their savings.

How to achieve your retirement goals

If you are nervous about your ability to build a nest egg, now is the time to take action. The sooner you begin saving, the more likely you are to reach your goals.

One way to get started is to enroll in the Money Talks News course The Only Retirement Guide You’ll Ever Need.

This 14-week boot camp is intended for those who are 45 or older, but anyone can benefit from the lessons.

Taught by Money Talks News founder Stacy Johnson, the course will provide you with such wisdom as:

• How to invest to reach your retirement goals and never outlive your savings
• How to score up to $12,000 more in Social Security benefits every year
• How to stay in top shape and manage your medical costs