Americans’ Retirement Savings Goal Skyrockets 53% Since 2020

The amount Americans believe they need to save for a comfortable retirement has surged to an all-time high of $1.47 million, according to a recent study by Northwestern Mutual. This “magic number” represents a staggering 53% increase since 2020 when the figure stood at $951,000.

The study reveals that the retirement savings goal has been rising much faster than the rate of inflation, highlighting the growing concerns among Americans about their financial security in their golden years.

Despite the ambitious target, the average amount U.S. adults have saved for retirement has dropped slightly from $89,300 in 2023 to $88,400 today, more than $10,000 off its five-year peak of $98,800 in 2021.

“In 2023, the soaring cost of eggs in the grocery store symbolized inflation in America. In 2024, it’s nest eggs,” said Northwestern Mutual chief strategy officer Aditi Javeri Gokhale. “People’s ‘magic number’ to retire comfortably has exploded to an all-time high, and the gap between their goals and progress has never been wider.”

The study’s findings show the pressing need for Americans to prioritize retirement planning in a country run by a regime that seems more interested in chipping away at Americans’ retirements than protecting them. As the cost of living continues to rise, the pressure to save more for retirement is becoming increasingly evident.