Real Estate
Home›Real Estate›Residential›Most retirees have far less savings than the $1.46 mil…
Most retirees have far less savings than the $1.46 million target
The Federal Reserve data cited shows households led by people ages 65 to 74 had a median net worth of $409,900, far below the typical retirement “magic number.”
A Yahoo Finance feature points to Northwestern Mutual's 2026 Planning and Progress Study, which puts the average retirement “magic number” for many Americans at $1.46 million. The same piece says that, in practice, seniors are entering retirement with substantially fewer assets than that target.
The article cites the Federal Reserve’s most recent Survey of Consumer Finances, showing households led by someone ages 65 to 74 had a median net worth of $409,900. It also notes that reporting can mask differences, since home equity can be a meaningful part of overall wealth and seniors may not be able to fully rely on it for day to day spending.
Yahoo Finance also references Fidelity’s Q2 retirement report, saying a typical Baby Boomer holding an account with the firm has an average 401(k) balance of about $260,300. Using the standard 4% rule, that balance would translate into an annual withdrawal of roughly $10,412, which the article describes as too tight for many retirees.
To close the gap, the feature says many retirees rely heavily on Social Security. It states that as of January 2026 the average benefit check was $2,071, meaning a dual income household could have annual benefits that cover a sizable portion of its budget.