Americans’ “magic number” for the savings they need to retire with a measure of financial comfort is $1.46 million, according to new research from Northwestern Mutual.

That figure, based on a survey of 4,375 people who were asked how much money they think they need in retirement, is up from $1.26 million in 2025. John Roberts, chief field officer at the financial planning firm, said the increase reflects ongoing consumer concerns about inflation, with elevated prices in recent years straining household budgets and making it harder for people to save.

The poll was fielded before the Iran war, which has only heightened such concerns as fuel prices rise.

Respondents also worried that artificial intelligence could impact their careers, with 33% saying they fear how the rapidly emerging technology will affect their jobs. Such concerns about job security could be leading some Americans to think they need a bigger nest egg, Roberts noted.

The reality of retirement savings

In general, Americans’ perception of how much money they need to retire is starkly at odds with their actual savings. Of people in the U.S. with retirement accounts, only 5% have at least $1 million socked away, while roughly 9% have $500,000, according to NerdWallet. 

Older age brackets tend to have larger nest eggs, but even workers who are nearing retirement often fall short. The median retirement savings for Americans aged 55 to 64 is $185,000, NerdWallet found.

Americans also aren’t saving as robustly. Payroll firm Dayforce found that Americans last year trimmed their annual contributions to their 401(k) accounts to 8.9%, down from 9.2% to in 2024.

“We’re acknowledging there’s a need… but we’re not taking enough action,” Roberts told CBS News.

Savings of $1.46 million would provide roughly $4,800 in retirement income per month, according to Northwestern. But Americans often undershoot how much they think they need to retire. 

Unexpected expenses can crop up, depleting funds more quickly than expected. In some cases, people have to tap their savings before hitting retirement age. Recent research from financial services firm Vanguard shows a record share of Americans are taking hardship withdrawals to cover an immediate need, like a medical expense.

“They’re kind of saying, future me is going to live lean,” Rorberts said. “But it’s not actually how it plays out in reality.”