Average U.S. household retirement savings is about $339,940, and those aged 65–74 have an average of $609,340. Americans report thinking they will need $1.26 million to retire comfortably. Fewer than 3% of Americans have $1 million or more invested for retirement. A $339,940 nest egg would generate roughly $13,597.60 annually under the 4% rule, while a $609,340 nest egg would generate about $24,373.60 annually. Individual financial situations determine how much money each person needs to be financially stable in retirement, and personalized planning can help assess readiness.
Americans think they will need $1.26 million to retire comfortably, according to Northwestern Mutual's 2025 Planning & Progress study. However, a good number of Americans are going to fall far short of that. In fact, the typical retirement savings amount for households in the U.S. is nowhere near $1 million, and the majority of current retirees also do not have seven-figure nest eggs.
It's important to understand that while there are optimum goals to set for retirement, your own individual financial situation is ultimately going to determine how much money you need to be stable in your senior years. Here's what you need to know about the state of Americans' retirement savings, as well as some advice on determining how much you personally will need to retire.
While Americans may aspire to retire with $1.26 million, 24/7 Wall Street reviewed data from the Employee Benefits Research Institute and the Federal Reserve and found that fewer than 3% of Americans have $1 million or more invested for their later years. In fact, the average U.S. family has around $339,940 saved for retirement, although this number rises to $609,340 for those between the ages of 65 and 74.
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