Study Says You Need $1.26 Million To Retire — Here's Why The Math Says Otherwise

Northwestern Mutual's 2025 Planning & Progress Study says Americans now peg the comfortable retirement price tag at $1.26 million. The figure stops scrolling thumbs, but it means wildly different things on Main Street.

What To Know: For a teacher in Tulsa, it feels cosmic; for a Manhattan surgeon, it barely rents a pied‑à‑terre. Treat it for what it is: a conversation starter, not a universal invoice.

Run Your Own Math

Financial planners at Fidelity prefer a rule that scales — save roughly 10 times your final salary. If Oliver retires on a $55,000 paycheck, $550,000 covers the gap his future Social Security check won't. Cynthia, earning $300,000, needs closer to $3 million. Your housing costs, health profile, and side‑hustle plans matter far more than someone else's median estimate.

See also: How To Put $100 In Your Retirement Fund Each Month With Pfizer Stock

Build Flexibility Into the Blueprint

Retirement isn't a one‑button launch. Markets wobble, health changes, and parents need care. Draft a rolling budget today, adjust annually, and keep optional levers — like part‑time consulting or relocating to a lower‑tax ZIP code — ready to pull. Flexibility is a hedge no index fund can match.

Dreams, Discounted

Can't bankroll that ‘Mamma Mia!' fantasy villa? Pencil in month‑long Airbnb stints on a Greek isle instead. Big goals shrink gracefully when you swap permanence for experience. The point is crafting a life you control, not chasing a number someone else published.

Ignore headline heuristics; focus on personalized goals, disciplined saving, and on‑the‑fly adaptability. The right figure is the one that funds your version of enough, whether that's $500,000, $1.26 million, or something in between.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock

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