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How Much Do You Need to Retire?

How Much Do You Need to Retire?

May 06, 2024

Rethinking Retirement Figures

I don’t know about you, but every time I see headlines that say, “Top 10 Reasons” or “How Much Do You Need,” I click on it.

So when I saw the CNBC article, “You’ll need at least $1 million to retire comfortably in these 10 U.S. States,” I couldn’t help myself.1

Seeking Clarity Beyond the Numbers

There were no surprises on the list. California, New York, and Hawaii held three of the top four spots. What I was looking for were details. For example, did the survey consider Social Security? Did it look at all assets, such as your home, or only investable assets? How long was “retirement” for the calculation? Unfortunately, not too many details were provided.

As it turned out, the article was based on the 2024 Planning and Progress study by Northwestern Mutual. The study found that U.S. adults believe they will need $1.46 million (see table) to retire comfortably, which was a 15% increase from 2023.2

What’s more stunning is that the “magic number” has jumped 53% from the $951,000 in 2020.

It’s entertaining information but not helpful when creating a retirement strategy. So when you see this type of content, click on it! I did. If it raises any questions maybe you should visit with an experienced, highly-trained, CERTIFIED FINANCIAL PLANNER™ professional and Behavioral Financial Advisor in West Saint Paul, Minnesota to help better understand your options. I love to meet new people. So, follow this LINK to find a time for us to have a get-acquainted visit.

I am a financial planner who is an advocate for my clients ALL THE TIME – a fiduciary financial planner. I provide guidance based on clients’ best interests, not commissions or sales quotas. I think it’s the best way to serve clients and I am thrilled to work this way all the time.

And yes, I’m still taking on a few great families to be part of my financial planning practice in West Saint Paul, Minnesota and, thanks to Zoom, across the country.

Dunncreek Advisors does not provide legal or tax advice, nor is this article intended to do so

1. CNBC.com, April 2, 2024. “You need at least $1 million to retire comfortably in these 10 U.S. states–half are in the Northeast.”
2. NorthwesternMutual.com, 2024. “Planning & Progress Study 2024.”