Overview
- Schroders’ 2025 survey reports Americans say they need about $1.28 million, yet 48% expect to retire with under $500,000 and 26% with under $250,000, while Northwestern Mutual pegs the target near $1.26 million.
- Federal Reserve data show the median retirement savings for ages 55 to 64 was $185,000 in 2022, underscoring the shortfall for near‑retirees.
- A 63‑year‑old with $390,000 could withdraw roughly $1,300 per month under the 4% rule, which combined with the average Social Security benefit of about $2,005 totals near $3,300 per month.
- Claiming Social Security before full retirement age permanently reduces benefits, making timing decisions critical for lifetime income.
- Advisers recommend raising contributions now, trimming expenses, considering longer or part‑time work, maintaining an emergency cash buffer, and planning withdrawals and benefits tax‑aware; they also note projections that Social Security may cover about 77% of scheduled benefits after 2033 without reforms.