How Much Do You Really Need to Retire?

When I recently saw a CNBC article titled, “You’ll need at least $1 million to retire comfortably in these 10 U.S. States,” my professional curiosity compelled me to click on it.¹

Unsurprisingly, California, New York, and Hawaii claimed 3 of the top 4 spots on the list, but what I was looking for was the details. These states are well known for their higher cost of living, but what were the other variables that this survey took into consideration?

Did it account for Social Security? Did it factor in all assets, such as real estate, or only investable assets? What was the length of retirement that was used for the calculation? Unfortunately, not too many details were provided.

I found out that the article was actually based on the 2024 Planning and Progress study conducted by Northwestern Mutual. The table below shows the average amount of money that each generation believes they will need to retire comfortably as of 2024. The study revealed that U.S. adults expect to need $1.45 million in order to retire — a 15% increase from 2023. What’s even more startling is the 53% jump from the $951,000 figure reported in 2020.²

While this type of information is certainly interesting, it is not particularly helpful when creating your own strategy. However, it can get you thinking proactively about retirement and raise questions you might not have considered before. If that’s the case, please feel free to reach out and I would be happy to review your plan with you.
 

¹CNBC.com, April 2, 2024. “You need at least $1 million to retire comfortably in these 10 U.S. states–half are in the Northeast.”

²NorthwesternMutual.com, 2024. “Planning & Progress Study 2024.”