The ads seem to be everywhere – from investment firms, financial planners, retirement advisors, you name it. They typically carry a headline that proclaims, “Yes, You Can Retire Comfortably with $1 Million.” And for a fee, they’ll gladly show us how.
But why $1 million? Besides being a nice, round number, where did that benchmark come from?
We asked our friendly AI chatbot to scour the web to find out what’s the most common recommendation from the financial industry concerning retirement savings. The reply: “When investment firms advertise retirement benchmarks, they generally frame their minimum recommendations using two primary rules of thumb: saving 10 times your pre-retirement annual salary by age 67, or accumulating a literal target between $1.2 million and $1.8 million.”
The implication is clear. If you plan to retire soon, you’ll need at least $1 million to be comfortable. But is that an accurate picture? This recent article from USA Today says the answer is no.
Research on Actual Retirees Makes $1 Million Benchmark Unrealistic
The article in USA Today was written by reporter Daniel de Visé. Quoting sources such as Fidelity Investments, he writes, “Common wisdom in retirement planning dictates that you should aim to save 10 times your annual salary, or reach a ‘magic number’ well past $1 million in savings, to retire in comfort.” However, that’s not anywhere near the experience of real people.
“Research on actual retirees suggests that those savings targets may be way too high, at least for most of us,” says de Visé. “The typical retiree has only $126,000 in household savings, according to a 2025 retirement survey by the Transamerica Center for Retirement Studies.”
He adds, “Other surveys suggest that only about half of retirees have any retirement savings” – this according to data from the Federal Reserve.
Despite the Data, Retirees Say They’re Doing Pretty Well
As the USA Today article notes, the evidence of meager savings should have today’s retirees on the edge of financial panic. But based on research, most retirees say they’re doing pretty well.
De Visé notes some evidence. “In an April Gallup poll, 82 percent of retirees said they have enough money to live in comfort,” he writes. A similar figure was reported in the 2025 federal Survey of Household Economics and Decisionmaking, in which 83 percent of Americans over 60 said they were either “living comfortably” or “doing okay” financially.
“And in the [2025] Transamerica survey, 76 percent of retirees said they are confident they can maintain a comfortable lifestyle in retirement,” says de Visé.
Experts Are Starting to Question the “Need” for $1 Million
De Visé quotes Andrew Biggs, who is a senior fellow at the American Enterprise Institute. He has written and spoken widely about the topic of retirement preparation and financial security. Biggs seems to regard the confident surveys with measured optimism.
“If what you’re asking is, ‘Are we preparing sufficiently for retirement,’ all of these numbers say that we are,” Biggs states. A few years ago, Biggs wrote a widely-quoted Wall Street Journal column titled, “You Don’t Need to Be a Millionaire to Retire.”
“His point,” de Visé writes: “You can retire with a lot less than $1 million. Most Americans do. And, as surveys repeatedly suggest, most of them seem to be doing all right.”
Financial Health of U.S. Retirees Provokes Speculation, Disagreement
It’s difficult, de Visé suggests, to get an accurate picture on financial health – or lack of it – among the retired population. “The financial stability of American retirees is a topic of endless debate,” he states.
He cites Andrew Biggs who has suggested that “Voices in the retirement industry and the news media overplay the notion of a retirement ‘crisis.’” These alarmists also “overstate the need for every family to bank seven-figure savings for a shot at a comfortable retirement,” de Visé writes. “[Biggs] is not alone in that view.”
“I do agree that not everyone needs a million dollars,” Anqi Chen of the Center for Retirement Research at Boston College told Visé. “That’s a very high number for some people, and not enough for others. That one number just doesn’t fit everyone.”
Are U.S. Retirees Over-Confident About Their Financial Picture?
However, experts sound a cautionary note. As de Visé observes, just because people say things are fine, the truth may not be that simple. “Whatever the merits of a $1 million retirement account, most Americans retire with a lot less,” he writes. “How well they are doing is a more nuanced question.”
The USA Today analysis cites the 2026 EBRI/Greenwald Retirement Confidence Survey which showed that about three-quarters of retirees rated their overall financial situation as good, very good or excellent. A similar number said they are confident they will have enough money in retirement.
But, de Visé says, “On the topic of savings, retirees are less confident.” Data from Transamerica said barely half of retirees believe their retirement nest egg is sufficient.
“Most retirees do seem to be getting by,” said Craig Copeland of the Employee Benefit Research Institute (EBRI) told USA Today. “But how we define ‘getting by’ becomes tricky.”
Despite Their Confidence, a Financial Shock Would Be Devastating
As we read de Visé’s USA Today article, we kept thinking about the reality – cited repeatedly by Rajiv Nagaich – that between 60 and 80 percent of seniors will likely need long-term care at some period in their lives. At that point, financial confidence can erode like a sand castle.
For his article, de Visé spoke with Catherine Collinson, CEO of the Transamerica Center. She sounded the same note of alarm. “[Retirees are] doing okay financially,” said Collinson. “But if they were hit with a major shock, like having to pay for major out-of-pocket long-term care, their savings would be depleted in a hurry.”
De Visé adds, “In the Transamerica report, nearly 50 percent of retirees said they would rely on family and friends to provide long-term care, rather than pay for professional caregivers.”
False Optimism May Put American Seniors at Financial Risk
As cited in USA Today, the Center for Retirement Research maintains a National Retirement Risk Index. It predicts, despite all the appearance of optimism, that about half of U.S. households will not be able to maintain their standard of living in retirement.
In her article explaining this tool, Alicia Munnell of the Center for Retirement Research (who is also a MarketWatch columnist) speculated on why so many retirees tell researchers that things are just fine financially when data suggests otherwise.
Are Older Americans Hesitant to Reveal Financial Worries?
“Despite the evidence to the contrary,” Munnell writes, “when older households are asked about how they are faring, the overwhelming majority – 80 percent – say they have enough money to be doing okay or living comfortably. Some interpret the high satisfaction levels as evidence that retirement savings are adequate.”
Munnell has a different view. “My guess has always been that older people are reluctant to say they are doing poorly and just adjust to their financial situation, whatever it is.”
As de Visé concludes, “Taken together, the retirement surveys suggest that most retirees are making ends meet, but their financial stability can be fragile.”
Rajiv’s View: Build a Reliable Financial Dashboard
We asked Rajiv to comment on the best strategy for those trying to answer the question, “How much do I need to retire?” His response: in the absence of a crystal ball, a financial dashboard can be the next best thing.
“There is no single one-size-fits-all answer to planning for a secure financial future,” says Rajiv, “because everybody’s situation is fundamentally different. The bigger question is, do you have a comprehensive financial roadmap to guide you through these transitions?”
A Powerful Planning Tool to Keep Your Retirement On Track
Rajiv calls this essential roadmap a financial dashboard. It functions as a powerful planning tool that gives you the ability to make smart decisions no matter what happens in the future economy.
“Unexpected hiccups are an inevitable part of retirement,” he adds. “A sudden tax liability, a spouse falling ill, an adult child needing financial support – the list of potential speedbumps is endless. A financial dashboard gives you the flexible framework to handle them.”
With this tool in place, Rajiv explains, you can evaluate both the immediate and long-term impact of your situation and allocate your resources to meet the need effectively. The sooner you meet with a qualified planner and create a financial dashboard, the better-equipped you will be for whatever life throws your way. Give us a call and let us put you in contact with the right professional adviser. Then, you can face your financial future with true confidence and peace of mind.
Rajiv Nagaich – Your Retirement Planning Coach and Guide
Rajiv Nagaich’s newest program on PBS, called Designing Your Ideal Future, is bringing Rajiv’s powerful message to Americans from coast to coast. This engaging and challenging PBS show is prompting thousands to take a fresh look at the type of planning that will help them succeed in retirement.
In this one-hour PBS special, Rajiv Nagaich takes viewers step-by-step through the principles of creating a retirement plan that truly supports the life you want to live. Instead of generic check-the-box paperwork, Rajiv reveals how to infuse your perspective — your values, goals, and priorities — into every legal document and life plan component so your plan becomes a living system for your future.
Designing Your Ideal Future includes insights from real-world planning examples and a live Q&A with Rajiv Nagaich that answers viewer questions about retirement planning, legal readiness, and family communication. It’s perfect for anyone approaching retirement, currently retired, or responsible for a loved one’s future care — and for those who want a clear, effective approach to planning that prioritizes personal choice and quality of life.
What about you?
You’ve heard Rajiv say it repeatedly: 70 percent of retirement plans will fail. If you know someone whose retirement turned into a nightmare when they were forced into a nursing home, went broke paying for care, or became a burden to their families – and you want to make sure it doesn’t happen to you – then these materials are your key to retirement success.
Visit your local PBS station’s schedule to find airtimes and learn how to access companion resources — including a free Legal Readiness Quiz and tools to help build your complete LifePlanning system.
Don’t remain among the millions of Americans sleepwalking their way into a retirement they never wanted. Instead, your retirement can be the exciting and fulfilling life you’ve always hoped it would be. Start by watching, reading, and sharing Rajiv’s important message.
And remember, Age On, everyone!
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