Retirement Expectations Rise as Addison and Waco Residents Reassess Financial Plans

A recent Northwestern Mutual Planning & Progress Study found that Americans now believe they will need $1.46 million to retire—an increase of more than 15% from last year. The rise reflects ongoing concerns about inflation, rising health care costs, longer life expectancy, and uncertainty around the future of Social Security.

While the figure represents a national average, local financial professionals say the sentiment behind it mirrors what they’re seeing across North and Central Texas.

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“For many individuals and families in Addison and Waco, the number itself isn’t the biggest issue,” said Chris Cruz, Managing Director for Northwestern Mutual’s Addison, Waco, and Central Texas offices. “What stands out is the growing awareness that retirement has become more complex and requires more intentional planning than it did just a few years ago.”

According to the study, nearly half of Americans don’t expect to be financially prepared for retirement, and a similar percentage worry they may outlive their savings. Cruz says those concerns are common among residents as career paths, family responsibilities, and financial priorities evolve.

“People are living longer, often healthier lives, which is great,” Cruz said. “But longer life spans mean retirement savings may need to last decades, especially when health care and long‑term care costs are factored in.”

In communities like Addison, where professionals may still be in peak earning years, and in Waco, where families balance affordability with long‑term stability, Cruz says planning early can make a meaningful difference.

“One of the biggest challenges we see is the gap between what people think they’ll need and what they’ve saved so far,” he said. “That gap can feel intimidating, but it’s also manageable with the right strategy.”

The study also suggests that retirement is being redefined. About half of Americans expect to work at least part time during retirement—whether for supplemental income, flexibility, or personal fulfillment.

“We’re seeing that trend locally as well,” Cruz said. “Many people want options. A good financial plan gives you the freedom to choose whether you work, rather than being forced to.”

Cruz encourages residents in both Addison and Waco to focus on progress rather than a single target number.

“You don’t need to have everything figured out immediately,” he said. “What matters is consistency—saving regularly, planning for health‑related costs, and adjusting your strategy as life changes.”

As expectations for retirement continue to rise, Cruz says the goal isn’t chasing a national benchmark.

“The real question isn’t whether $1.46 million is enough,” he said. “It’s whether individuals and families have a plan that provides confidence, flexibility, and peace of mind for the future.”