Think tank proposes capping Social Security benefits at $100,000
A Washington think tank has proposed capping annual Social Security benefits for married couples at $100,000 as a way to reduce a looming deficit in retirement trust funds.
Americans currently need $1.46 million to retire comfortably, according to the 2026 edition of Northwestern Mutual’s famous Financial Planning Survey.
The “magic number” for retirement estimates the amount of money American adults believe they need to retire comfortably. John Roberts, executive vice president and chief field officer at Northwestern Mutual, said it is intended as a “guidepost” for retirement planning and not for any specific savings goal.
It’s also a goal that few Americans have achieved.
According to the 2026 Planning and Progress Survey, nearly half of non-retirees surveyed said they do not feel financially ready when the time comes for them to retire.
And about half of Americans surveyed said they are likely to outlive their savings. Running out of money in retirement is a perennial fear for older Americans.
Northwestern Mutual’s new findings, released April 1, are based on a survey of 4,375 adults conducted in January.
“There seems to be a growing gap between what we all expect we’ll need and what we actually have,” Roberts said.
Over the past four years, the magic number for retirement has been as low as $1.25 million (2022). Not exceeding $1.46 million.
Northwestern Mutual’s research comes at a time when Americans are grappling with years of cumulative inflation. Retirees in 2026 can expect to pay higher costs than ever before, for example, for long-term care costs such as assisted living and skilled nursing care.
Is $1.46 million a realistic retirement savings goal?
Not many Americans retire with $1.46 million in savings. According to the 2022 Federal Consumer Finance Survey, the typical household between the ages of 65 and 74 has about $200,000 in retirement accounts.
Few retirement planners would suggest that every retiree needs $1.46 million to make ends meet. Most Americans retire without nearly $1 million in savings. Many people retire comfortably with just their Social Security income.
A more achievable retirement planning goal is to aim to save 10 times your annual income by age 67. A typical American household would have just over $800,000 in savings, based on a median household income of $83,730 in 2024.
Northwestern Mutual’s research shows that very few people achieve that goal.
Only about 13% of Gen The majority of Gen Xers said they are saving less than four times their income for retirement.
Unsurprisingly, only 49% of Gen Xers said they felt financially prepared for retirement. Half of Gen Xers plan to continue working after retirement.
If there is one group of Americans heading toward retirement, it may be Generation Z, a group whose oldest members are approaching age 30.
According to research from Northwestern Mutual, nearly three-quarters of Gen Z have already saved more than one year’s worth of income for retirement. The average Gen Zer started saving for retirement at age 22. In contrast, the typical Gen Xer started saving at age 32.
“The good news is that Gen Z…is saving money faster,” Roberts said.
