Overview
- JPMorgan’s 2025 analysis centers on income replacement rather than a universal target, modeling roughly 5% gross saving for sub-$90,000 earners and 10% for $100,000+ earners, with seven-figure goals justified for $125,000+ households.
- Many advisors now cite targets near $1.5 million as more realistic than the traditional $1 million/4% rule due to inflation, market assumptions and longer retirements.
- The average retired-worker benefit was $2,013.32 in November 2025, a 2.8% COLA begins in 2026, and a $202.90 Medicare Part B premium for new enrollees is expected to blunt the net increase.
- Experts warn that high-cost metros, heavy healthcare spending around 20% of savings and burdensome mortgages or property taxes are common signs that $1 million may fall short.
- Retiree wealth varies widely — median net worth for ages 65–74 is $409,900 versus a $1.79 million average — reinforcing the value of early saving, prudent withdrawals and delaying Social Security to boost benefits by about 8% per year until age 70.