Americans expect to need $1.25M for a comfortable retirement, study finds - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Advisor News
Top Stories RSS Get our newsletter
Order Prints
November 2, 2022 Top Stories
Share
Share
Tweet
Email

Americans expect to need $1.25M for a comfortable retirement, study finds

Americans worried about retirement savings.
By Ayo Mseka

Given inflation spikes and volatile markets, Americans surveyed expect they’ll need $1.25 million for a comfortable retirement – a 20% increase over last year’s expectations, according to Northwestern Mutual’s 2022 Planning & Progress Study.

In addition, Americans, on average, plan to work until the age of 64, which is up from 62.6 last year. At the same time, average retirement savings dropped from $98,800 in 2021 to $86,869 in 2022.

“This set of findings dove into retirement and revealed a stark contrast between expected needs for retirement versus what people actually have saved, said Andy Platt, managing director, Northwestern Mutual, Dayton, Ohio.

“Northwestern Mutual’s Planning & Progress Study examines the role finances play in people’s day-to-day lives – how they affect the way people live, feel and plan,” said Platt.

“The rise in inflation is making it harder to save. It’s also making everything look more expensive.” Andy Platt, managing director, Northwestern Mutual, Dayton, Ohio

Platt shared a couple of reasons so many survey respondents said they will need such a large amount – $1.25 million – to have a comfortable retirement, and why they have raised their anticipated retirement age.

A number of factors are converging at the same time, and they are leading people to feel crunched financially, Platt explained. “The rise in inflation is making it harder to save. It’s also making everything look more expensive.”

Meanwhile, he added that the drop in the markets is taking its toll on people’s investment portfolios and 401(k) plans. “You have a lot of people out there doing the math and are seeing the bar get higher right when it’s harder to save and accumulate. So they’re adding to the runway. They’ve extended out the amount of time they anticipate they’ll have to work,” he said.

Living longer, working longer

In addition, the survey said that one-third (33%) of Americans expect to live to 100, with an equal third (33%) predicting there is a better than 50% chance they may outlive their savings. At the same time, more than one in three (36%) report that they have not proactively taken any steps to address this concern.

The study also finds low levels of confidence among Americans about their retirement preparedness – and they don’t have great faith in Social Security as a backstop. More than four in ten (43%) people say they do not expect to be financially ready for retirement when the time comes and 45% say they can imagine a time when Social Security will no longer exist.

Prioritizing fulfillment over salary

Finally, the study uncovered interesting data about what Americans value in their work lives. It finds that most adults (60%) prioritize personal fulfillment over salary and income potential (40%) in their careers.

In light of this finding, what approach should advisors take as they work with their clients to secure a comfortable retirement?

“Life, like a good financial plan, is all about balance,” said Platt. “The benefit of working with an advisor is having an outside perspective on how to balance personal satisfaction and enjoyment with a desire to retire comfortably.”

“A good advisor,” he added, “knows how to listen, not just guide. It’s their job to look beyond the numbers and understand what success looks like case by case. To understand someone at that level, you have to start first with listening.”

The 2022 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual and included 2,381 American adults aged 18 or older who participated in an online survey February 8-17, 2022.

 

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

© Entire contents copyright 2022 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Ayo Mseka

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].

Older

L.inc Advisory annuity income benefit rider payout percentages increase

Newer

Fed continues assault on inflation with another .75 point rate hike

Advisor News

  • CFP Board convenes AI Working Group
  • Worldwide volatility fuels sharp decline in financial hope
  • Trump bill includes $1K investment account for newborns
  • Sen. Jim Banks Introduces Bill to Ban Pension Investments in Adversarial Countries
  • Why your clients should be planning for healthcare costs in retirement
More Advisor News

Annuity News

  • Could a bitcoin-based indexed annuity be in the future?
  • Annuities ‘can add a little juice to the retirement portfolio’
  • Annuity sales top $100B for the 6th straight quarter, LIMRA reports
  • Athene announces key leadership appointments
  • ‘Annuity King’ gets trial date for lawsuit against feds, Florida regulators
Sponsor
More Annuity News

Health/Employee Benefits News

  • Surge in spending demands restraint
  • Iowa officials warn more rural hospitals may close under proposed Medicaid cuts
  • Medicaid reform is appropriate
  • Walker column: Why Medicaid reform is appropriate
  • Louisiana's Bill Cassidy has an idea to save money on Medicare. Will Congress take it up?
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Everlake Life Group Members
  • AM Best Comments on Credit Ratings of Erie Insurance Group and Erie Family Life Insurance Company
  • AM Best Affirms Credit Ratings of Hyundai Marine & Fire Insurance Co., Ltd.
  • CONSIDERATIONS WHEN PURCHASING LIFE INSURANCE
  • AM Best Affirms Issue Credit Ratings of Weston2038 LLC’s Credit-Linked Notes
More Life Insurance News

- Presented By -

Top Read Stories

  • Agent groups condemn United Healthcare eliminating commissions
  • Trump bill includes $1K investment account for newborns
  • NABIP condemns United Healthcare’s decision to slash agent commissions
  • ‘Annuity King’ gets trial date for lawsuit against feds, Florida regulators
  • Erie Insurance sued over claims that customer data was exposed in 'ransomware' attack
More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • RFP #T01625
  • TAG Advisors Adds New Specialty Markets Leader Carmine LaCognata
  • Royal Neighbors of America Celebrates 130 Years
  • WealthFeed Partners with Wells Advantage Group to Empower Agents with Next-Level Prospecting and Insurance Solutions
  • Wichita National Life Implements Hexure’s FireLight to Power Annuity Sales and Market Expansion
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet