The Net Worth Americans Believe They Need by 60 vs. the Reality

Here’s the thing about retirement planning. Most people know they should be saving. They believe it’s important. Yet when you dig into the numbers, there’s this massive disconnect between what Americans think they’ll need and what they’ve actually managed to put away. That gap? It’s widening, not shrinking.

The dreams we have for retirement often clash with the reality of our bank accounts. Let’s dive into what Americans actually believe they need by age 60 versus what the data shows they’re sitting on.

Americans Think They Need $1.46 Million to Retire Comfortably

According to Northwestern Mutual’s 2024 Planning & Progress Study, U.S. adults believe they will need $1.46 million to retire comfortably, a 15% increase over the $1.27 million reported just the year before. That’s not just a minor uptick. Over a five-year span, people’s ‘magic number’ has jumped a whopping 53% from the $951,000 target Americans reported in 2020.

Inflation plays a role here, obviously. Rising costs have everyone nervous. This jump in expectations far outpaces today’s inflation rate which currently hovers between 2% and 3%, suggesting the fear of running out of money is driving these numbers higher than actual economic conditions might justify.

The Harsh Reality: Average Savings Are Just $88,400

Now here comes the gut punch. The average amount that U.S. adults have saved for retirement dropped modestly from $89,300 in 2023 to $88,400 today, but is more than $10,000 off its five-year peak of $98,800 in 2021. That’s a staggering gap of roughly $1.37 million between what people think they need and what they’ve actually managed to save.

Think about that for a second. We’re talking about a difference that could determine whether you’re eating out occasionally or stretching every dollar for groceries. Americans without financial advisors had an estimated $62,000 in retirement savings, while those with an advisor had $132,000, which shows professional guidance makes a tangible difference, though even that higher number falls drastically short of the perceived need.

What People Actually Have by Their 60s

As of October 2025, the average net worth for people in their 60s is $1,576,784. Sounds pretty good, right? Hold on. Averages get skewed by the ultra-wealthy. The median is only $192,964 for people in their 50s, meaning half of households in that age range have less.

In 2022, the median net worth of Americans aged 55 to 64 was $364,500, which represents those approaching traditional retirement age. The highest average American net worth belongs to those aged 65 to 74 at $1,794,600, while Americans 55 to 64 years old have the second-highest average net worth at $1,566,900. Still, these averages mask the reality for typical households who are nowhere near these figures.

Half of Americans Believe They Didn’t Save Enough

Given their economic circumstances during retirement, half of retirees said they saved less than what was needed for retirement. That’s not speculation or anxiety talking. These are people who’ve already retired and are looking back with 20/20 hindsight.

The regret is palpable. Half say that they did not save enough for retirement, compared with one in three who say they saved just enough, and 13% who say they saved more than enough. More than half are ‘very or somewhat concerned’ about running out of savings during retirement, according to a 2024 CNBC survey.

People Retire Earlier Than They Expect

On average, people expect to retire at age 65 but end up retiring at 62, a three-year gap that can be a significant surprise if you’re not prepared. This isn’t because they suddenly won the lottery. Nearly 70% of those who retired earlier than expected did so for reasons beyond their control, ranging from health issues and economic changes to family obligations.

Similar to last year, half of retirees say they retired earlier than expected, and while 2 in 5 retirees who retired early say they did so because they could afford to, nearly 7 in 10 retirees indicate the reason was out of their control, according to the 2024 Retirement Confidence Survey. Life has a way of making plans for you, whether you like it or not.

The Social Security Disconnect Nobody Talks About

There’s a fascinating and concerning gap in expectations around Social Security. Though only half of non-retired respondents expect Social Security to be a major source of their income, 82% of retired respondents report that Social Security does make up a major source of income – more than twice as many as report relying on any other source.

Even among non-retirees who are closest to traditional retirement ages (those aged 55–64), just 71% report expecting Social Security to make up a major source of retirement income. That’s a dangerous underestimation. People are essentially planning without accounting for what will likely become their primary income stream.

The Working-in-Retirement Fantasy

While 75% of workers expect to continue working for pay during retirement, only 30% of retirees report that they have worked for pay since retiring. That’s a massive expectation gap. Your body and circumstances might have different plans than your brain does.

The biggest expectations mismatch, in percentage terms, is related to earnings from work in retirement, as 19% of non-retired respondents expect earnings from part-time work to provide significant income in retirement, but only 7% of retired respondents report such earnings. Health issues, caregiving responsibilities, or simply lack of available opportunities make post-retirement work less viable than people hope.

Median Net Worth Jumped 37% Between 2019 and 2022

Americans’ median net worth surged 37% to $192,900 between 2019 and 2022 – the biggest jump since the triennial survey began in 1983, according to the Federal Reserve’s Survey of Consumer Finances. That sounds like fantastic news, doesn’t it?

Much of the increase in net worth is being driven by home prices increasing in the United States, as the median price of houses sold went from $313,000 to $433,100, an increase of 38%. So for many Americans, that wealth is tied up in the houses they’re living in, not necessarily available to fund daily retirement expenses.

55-Year-Olds Face a Critical Decade

Fifty-five-year-olds have median retirement savings of less than $50K, falling significantly short of the recommended goal of having eight times one’s annual income saved by this age, according to Prudential’s 2024 Pulse of the American Retiree Survey. That’s genuinely alarming.

Two-thirds of 55-year-olds fear they will outlive their savings, compared to 59% of 65-year-olds and 52% of 75-year-olds. Younger pre-retirees are more anxious than those who’ve already retired, possibly because they’re just now doing the math and realizing the shortfall. The ten years between 55 and 65 represent a crucial window to course-correct.

Only 39% Have an Actual Retirement Plan

Although three-quarters of Americans believe that saving for retirement is important, just 39% of respondents have a plan in place that will allow them to retire when they want to. Believing something is important and actually doing something about it are two entirely different things.

More than half of Americans lack confidence in their ability to retire when they want to and sustain a comfortable life, according to a 2024 survey from the American Savings Education Council. That anxiety is well-founded when you compare the aspirations with the actual numbers people are saving.

The gap between retirement dreams and retirement reality isn’t just a number on a spreadsheet. It represents real anxiety, genuine fear about the future, and difficult choices ahead for millions of Americans. Some will work longer than they wanted. Others will scale back their lifestyles dramatically. The lucky ones started early, saved consistently, or received professional guidance that helped them close that gap.

What do you think? Does your own retirement savings match your expectations, or are you facing your own version of this disconnect?