More and more financial experts are warning that $1 million might not be enough to fund a comfortable retirement. On Monday, the investing site Real World Investor published new research estimating that Americans will need over $1.1 million more in savings to retire securely in 20 years. The rising estimate reflects a mix of factors—persistent inflation, longer life expectancy, and increasing living costs.
“This data reflects the true cost of retirement in the U.S., and sadly, many people just aren’t ready,” said Adam Koprucki, founder of Real World Investor. “If you plan to spend $50,000 per year for 25 years, you’re looking at needing over $1.25 million—a figure that feels unattainable for a lot of people.”
That gut reaction—that $1 million isn’t enough—resonates. It feels almost dystopian that such a sum, once seen as a golden benchmark, no longer guarantees financial security. Especially when many Americans in their 50s and 60s have saved only half that. The most glaring example? Real estate. In more than 230 U.S. cities, even entry-level homes now average around $1 million, according to Zillow.
That said, aiming too high might not be a bad thing.
The reality is that how far $1 million will take you depends entirely on your lifestyle, your location, and how long you live. If you’re in a place like New York City and your monthly expenses top $5,000—including utilities, taxes, and maintenance—$1 million won’t stretch far, especially if you plan to live into your 90s.
And then there’s inflation—the slow erosion of purchasing power. It's the unseen force that eats away at the value of your savings. Even at a modest 2% annual inflation rate (the Federal Reserve’s target), $1 million today would shrink to about $552,000 in 30 years. At 4%, it drops to roughly $308,000.
Three things in life are certain: death, taxes, and inflation. The last of these has pushed the estimated amount needed for a secure retirement up to $1.26 million, according to Northwestern Mutual’s 2025 Planning & Progress Study. Interestingly, that number is slightly down from last year’s $1.46 million projection, but the message remains clear: plan for more, not less.
When $1 Million Became the Baseline
That “magic number” officially crossed the $1 million threshold in 2021, rising from $950,800 the year before, per Northwestern Mutual. Inflation, especially during and after the pandemic, rattled long-term financial expectations—and gave people more reason to worry about what it would really take to retire. So while overestimating might seem pessimistic, it could end up being the smartest move you make.
