Americans need $1.46 million to comfortably retire — but most seniors have just $200,000 in savings

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Americans need .46 million to comfortably retire — but most seniors have just 0,000 in savings — Americans need 146 million to comfortably retire — but most.jpg

Retiring comfortably in America requires more money than ever before. However, a large majority of senior citizens have significantly less savings than what is recommended.

According to Northwestern Mutual’s 2026 financial planning study, a minimum of $1.46 million in savings is recommended for a comfortable retirement.

Despite this recommendation, a 2022 federal consumer finances survey found that most Americans between the ages of 65 and 74 only have approximately $200,000 in their retirement accounts.

The typical American of retirement age has just $200,000 in savings — compared to the $1.46 million recommended. whyframeshot – stock.adobe.com

Only 13% of the recommended retirement savings target is met by the average American retiree, as highlighted in the 2026 Planning & Progress Study, which revealed that almost half of Americans doubt they will have enough savings for retirement.

An alarming 48% fear that their retirement savings will run out before their passing.

John Roberts, an executive vice president at Northwestern Mutual, expressed concern over the widening gap between retirement expectations and actual savings. He emphasized that the $1.46 million target is a guidepost for Americans to aim for.

Over the years, the recommended retirement savings target has been steadily increasing. In 2022, Northwestern Mutual advised Americans to have $1.25 million saved up before retirement.

A senior couple discussing papers and using a laptop inside a room. — The recommended retirement savings have been increasing in recent years, reaching an all-time high in 2026. WavebreakMediaMicro – stock.adobe.com

Despite not meeting these recommended targets, many Americans still manage to retire with the assistance of services like Social Security. This helps bridge the gap and support a sustainable lifestyle in retirement.

Some financial institutions, such as Fidelity, suggest a more modest retirement goal of saving about 10 times your annual salary before retiring. Based on the 2024 median household income of $83,730, this equates to around $800,000. However, only 4% of Gen X respondents in the Northwestern survey reported achieving this savings goal.

While about 49% of Gen Xers doubt their financial readiness for retirement, half anticipate working beyond retirement age.

On the other hand, younger generations like Gen Z are making strides towards building their retirement savings. Most Gen Z individuals have started saving by age 22, compared to Gen X, who typically began saving at age 32 according to the study.