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article <\/p>\n article <\/p>\n
Americans’ “magic number” for retirement rose to $1.46 million. (Angela Weiss\/AFP for Getty Images) <\/p>\n
The “magic number” that Americans believe they need to have\u00a0saved for retirement<\/a> jumped from a year ago as some express anxiety about their retirement savings.<\/p>\n Northwestern Mutual released a study on Wednesday which found that the amount of retirement\u00a0savings<\/a> Americans think they need to retire comfortably rose to $1.46 million.<\/p>\n That figure is an increase of $200,000 from last year’s edition of the report and is in line with the estimated magic number from 2024, the firm noted.<\/p>\n “The new ‘magic number’ reflects a convergence of factors \u2014 from persistent inflation and longer life expectancies to uncertainty about the future of Social Security,” said John Roberts, chief field officer at Northwestern Mutual.\u00a0<\/p>\n For Americans with a relatively high net worth, defined as having $1 million or more in\u00a0investable assets<\/a>, the magic number is even higher at $2.67 million, on average.<\/p>\n “Retirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need. What matters now is pairing those expectations with a thoughtful, comprehensive financial plan that will enable them to reach their unique goals,” Roberts said.<\/p>\n The report found that 46% of Americans say they don’t expect they will be financially prepared for retirement, and 48% said it’s somewhat or very likely they will outlive their savings. It also found that just 23% of Americans with retirement savings said they have only one year or less of their current income set aside.<\/p>\n The report notes that while there isn’t a universal retirement number for all Americans, Northwestern Mutual recommends that people plan to replace about 80% of their pre-retirement income.<\/p>\n It also detailed several other\u00a0retirement rules of thumb<\/a> for Americans to consider as they think about how much they should save for retirement.<\/p>\n The so-called “25x rule” suggests that a person should save about 25 times their expected annual savings. Using the $1.46 million “magic number” from the study, that would be sufficient to generate about $58,000 in annual retirement income, the report said.<\/p>\n Another rule of thumb is the $1,000-a-month rule, which states that for every $1,000 of desired monthly retirement spending, there should be $300,000 in savings. For example, with $1.46 million in retirement savings, it would yield about $4,800 in retirement income per month.<\/p>\n “These rules of thumb can certainly give Americans a ballpark estimate for their own\u00a0wealth management<\/a> goals. But they don’t factor in the big risks to retirement \u2013 like increasing healthcare costs or a long-term care event,” Roberts said.\u00a0<\/p>\n “They also don’t consider any unique estate planning goals that Americans hope to provide to the next generation,” he added, noting that developing a financial plan with an advisor can be beneficial.\u00a0<\/p>\n LINK: Get updates and more at foxbusiness.com.<\/a>\u00a0<\/p>\n Personal Finance<\/a>Economy<\/a>Lifestyle<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"article Americans’ “magic number” for retirement rose to $1.46 million. (Angela Weiss\/AFP for Getty Images) The “magic number”…\n","protected":false},"author":2,"featured_media":383805,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,166,1087,43,174,175,13017],"class_list":["post-383804","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-ie","tag-ireland","tag-lifestyle","tag-money","tag-news","tag-personal-finance","tag-personalfinance","tag-us-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/383804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=383804"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/383804\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/383805"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=383804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=383804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=383804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}