Come on, let’s get real—you’ve probably wondered, “How much am I going to need to retire?” You’re not alone. We all would love a straightforward, simple objective. One that we can strive for and shoot for. For years, people have thrown around amounts like $1 million or even $2 million as the ticket to a heavenly retirement.
But the reality is: it seems that the real “magic number” is a little lower—and maybe even more within reach than you thought.
So, what’s the number?
Based on the most recent Planning & Progress Study from Northwestern Mutual, the typical American today anticipates needing $1.26 million to retire in style. That’s a pretty lofty goal, to say the least, but actually $200,000 lower than individuals believed they’d require just last year. The reduction aligns expectations with what individuals were considering during 2022 and 2023. So, what’s happening?
Why are expectations changing?
Part of the reason is inflation. Do you remember how terrible it was way back in 2022? Inflation has started to ease since then—slowly and erratically, admittedly—but enough to influence expectations of future cost. If you think that your dollar will stretch further, you don’t have to save quite as much.
Moreover, our conception of retirement is changing. Approximately half of Americans plan to keep working after age 65, and almost 40% expect to still be working in their 70s—or never retire at all, the Transamerica Center for Retirement Studies reports. For pleasure because they love it or simply because they require the money, retirement is being redefined.
But is $1.26 million enough?
Here’s the catch: even that figure can be all the more appropriate only if you’re investing intelligently. Traditional portfolios were constructed around the 60/40 rule—60% of your portfolio in stocks, 40% in bonds. In today’s roller-coaster economy, however, that just may not cut it anymore. Diversifying your portfolio is more important than ever.
Think about adding stability to your investments
One of the mechanisms through which people are protecting their retirement savings is through investing in “safe-haven” investments like gold. Gold has long kept its value during times of inflation or financial market decline. With something like a Gold IRA, you have the privilege of both the long-term security of gold and the tax advantages of a retirement account.
Some firms, including Thor Metals, even offer free beginner guides, and at times they offer additional bonus metals for qualified accounts, up to $20,000.
Final thoughts: Shoot for the right number for you
That $1.26 million figure is a good rule of thumb—but it’s hardly a universal solution. Your retirement amount depends on how you’re going to live, where you’re going to live, and for how many years you’re going to work. So use the figure as an estimate—but don’t be discouraged. With the right plan and a little consistency, you’ll be able to hit it.
