Americans Believe They Will Need $1.46 Million to Retire

Across the country, Americans believe the ‘magic number’ needed to retire comfortably is as high as it’s ever been – now at $1.46 million according to the latest findings from Northwestern Mutual’s 2026 Planning & Progress Study. In Milwaukee, though, 48% do not think they will be financially prepared for retirement when the time comes. Plus, more than half of Milwaukeeans (52%) believe it is likely they could outlive their savings.

“The rise in the ‘magic number’ comes from several converging trends — continued inflation, greater longevity and uncertainty around Social Security,” said Dan Guhl, a Milwaukee-based private wealth advisor with Northwestern Mutual and partner at Prescient Financial Solutions. “With retirement planning increasingly complex, people are increasing their expectations of what they’ll need. What matters is converting those expectations into reality through a deliberate, comprehensive financial strategy tailored to each individual.”

The $1.46 million ‘magic number’ for retirement is a $200k increase year-over-year based on Northwestern Mutual’s annual proprietary research series, which explores Americans’ attitudes, behaviors, and beliefs toward money, financial decision-making, and the broader issues impacting long-term financial security.

In Milwaukee, 67% of people anticipate they will wait until age 65 or older to retire. In the meantime, 62% of Milwaukeeans are taking steps in an effort to address the possibility of outliving their savings.

Many Milwaukeeans are currently working in retirement or are planning to continue working during retirement, with 40% saying it’s part of their plan while another 21% said they were not sure. The reasons for doing so vary significantly, though.

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.

About the 2026 Northwestern Mutual Planning & Progress Study 

The 2026 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,375 U.S. adults aged 18 or older. The survey was conducted online between January 5 and January 21, 2026. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and propensity to be online to bring them in line with their actual proportions in the population. A complete survey methodology is available.

About Northwestern Mutual  

Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what's most important. With more than $780 billion of total assets¹ managed across the company's institutional portfolio as well as retail investment client portfolios, more than $40 billion in revenues, and $2.5 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than five million people with life insurance, disability income insurance, long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 109 on the 2025 FORTUNE 500 and was recognized by FORTUNE® as one of the "World's Most Admired" life insurance companies in 2026.  

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.   

¹ Includes investments and separate account assets of Northwestern Mutual as well as retail investment assets held or managed for clients.