The Secret Habit That Doubles Americans' Retirement Savings

"Saving for retirement is something every American needs to do, but not that many Americans are great at actually doing. In fact, according to the 2 024 Northwestern Mutual Planning and Progress Study, Americans anticipated they would need $1.46 million to retire comfortably, while they had just $88,400 saved for retirement currently. This left a $1.37 million gap between the amount people believe they will need for a secure future and the amount they actually have."

"Americans are not wrong to assume they'll need a large nest egg, topping $1 million. The reality is that Social Security replaces only 40% of pre-retirement income, and $1 million in an investment account only provides around $40,000 at a safe withdrawal rate. Since most people need to replace around 80% to 90% of pre-retirement earnings, even $1.46 million may not cut it - especially for those who are retiring many years into the future and who will see their buying power decline due to inflation."

"So what's the habit that doubles your retirement savings? It's simple: Working with a financial advisor. Financial advisors can help you at all phases of your financial journey, working with you to create a plan for retirement and to increase your overall financial stability and open up the door to being able to save and invest more to make that plan a reality."

Americans anticipate needing $1.46 million to retire but currently have $88,400 saved, leaving a $1.37 million shortfall. Social Security replaces about 40% of pre-retirement income, and $1 million in investments generates roughly $40,000 at a typical safe withdrawal rate. Most households need to replace about 80%–90% of pre-retirement earnings, so projected nest eggs may be inadequate, especially after inflation reduces buying power over time. Working with a financial advisor correlates with approximately double the retirement savings. Advisors assist across financial phases, create retirement plans, improve stability, and enable greater saving and investing to reach retirement goals.

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