Twin Cities Residents Believe They'll Need $1.43M to Retire, Half Thinking They'll Outlive Savings

Nearly two-thirds of Twin Cities Residents have not planned for the possibility of outliving their savings, according to 2026 Northwestern Mutual Planning & Progress Study

MINNEAPOLIS, April 15, 2026 – People throughout Minneapolis believe the ‘magic number’ needed to retire comfortably is now $1.43 million, according to the latest findings from Northwestern Mutual’s 2026 Planning & Progress Study. This marks a notable rise from the $1.31 million estimated by Twin Cities Residents in 2025.

“As retirement goals shift upward in the Twin Cities, it's clear that residents are thinking more deeply about their long-term security,” said Brady Lindemann, Wealth Management Advisor, at Vertex Capital Planning. “While a $1.43 million target is a strong benchmark, our goal is to help residents move from anxiety to action by creating a personalized roadmap that can turn those savings into a reliable stream of lifetime income.”

The national average of a $1.46 million ‘magic number’ for retirement is a $200,000 increase year-over-year based on Northwestern Mutual’s annual proprietary research series.

Retirement Readiness and the Longevity Gap

The study found that 54% of Twin Cities Residents believe they will be financially prepared for retirement. Longevity remains a top concern, with 48% believing it’s likely they will outlive their savings. Despite this risk, 64% have not yet created a formal plan to address it.

Which steps have been taken?

Twin Cities Residents

Increased their savings

26%

Purchased investments

24%

Put together a financial plan

20%

Sought advice from a financial advisor

20%

Purchased whole life insurance

14%

Discussed options with family

13%

Conducted research, information searches

13%

Have a long-term plan

12%

Learned more about government assistance available

8%

Obtained information from related associations (e.g., AARP)

7%

Purchased disability insurance

6%

Twin Cities Residents show a strong desire for personal fulfillment alongside financial necessity.

Reasons to continue/plan to continue working in retirement

Twin Cities Residents

Continue to feel useful/stimulated

63%

Want the additional income to fund preferred retirement lifestyle

40%

Need the additional income to be able to afford retirement

51%

Meet new people / be part of a community

23%

Pursue a new or more fulfilling career

21%

While there is no universal retirement number for everyone, Northwestern Mutual generally recommends that people aim to replace around 80% of their pre-retirement income. However, each person's retirement need depends on their individual goals and circumstances, such as when they want to retire, where they’ll live, and what kind of lifestyle they want to maintain throughout their retirement years.

Northwestern Mutual recommends several “retirement saving rules of thumb” to help people begin to think about how much they may want to save. For example:

The 25x Rule suggests saving roughly 25 times a person’s expected annual spending. Someone with $1.46 million saved would be able to generate about $58,000 in annual retirement income.

The $1,000-a-Month Rule notes that every $1,000 of desired monthly retirement spending translates to $300,000 the individual should have saved. A $1.46 million nest egg would provide approximately $4,800 in retirement income per month.

The 4 Percent Rule suggests that an individual may withdraw 4% of their retirement savings in the first year and withdraw the same amount (adjusted for inflation) for about the next 30 years. Four percent of $1.46 million is approximately $58,000 in annual retirement income.