Have you thought about how much it will take to retire? Apparently, that number is $1.27 million.
Per Northwestern Mutual’s 2023 Planning & Progress study, many Americans shared they they’d need to over a million to comfortably stop working full-time—this amount increased from last year’s $1.25 million.
“Americans’ magic number for retirement readiness continues to rise,” said Aditi Javeri Gokhale, chief strategy officer, president of retail investments and head of institutional investments at Northwestern Mutual in a news release. “The good news is that they are saving and investing more for tomorrow, even in this time of high inflation and market volatility. That is a step in the right direction and a reverse of what we saw last year when the gap widened rather than narrowed. The challenging news is that there continues to be a big disparity between what they think they’ll need to retire and what they’ve saved to date.”
The report also found that the boomer generation plan to work until they’re 71-years-old and Gen Z aim to call it quits by 60. Millennials and Gen Xers plan to work retire in their mid-sixties. a
“One of the greatest gifts that financial planning provides is time,” said Javeri Gokhale said in a statement. “Planning and discipline can unlock four years of life in retirement, and professional help is there for everyone regardless of where they are on their financial journey.”