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How Much Do You Need to Retire?

How Much Do You Need to Retire?

May 08, 2024

I don’t know about you, but every time I see headlines that say, “Top 10 Reasons” or “How Much Do You Need,” I click on it.

So when I saw the CNBC article, “You’ll need at least $1 million to retire comfortably in these 10 U.S. States,” I couldn’t help myself.1

There were no surprises on the list. California, New York, and Hawaii held three of the top four spots. What I was looking for were details. For example, did the survey consider Social Security? Did it look at all assets, such as your home, or only investable assets? How long was “retirement” for the calculation? Unfortunately, not too many details were provided.

As it turned out, the article was based on the 2024 Planning and Progress study by Northwestern Mutual. The study found that U.S. adults believe they will need $1.46 million (see table) to retire comfortably, which was a 15% increase from 2023.2

What’s more stunning is that the “magic number” has jumped 53% from the $951,000 in 2020.

It’s entertaining information but not helpful when creating a retirement strategy. So when you see this type of content, click on it! I did. If it raises any questions you think we may have overlooked, please call me so we can review.

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