How much money do you need to retire?

Recent data from Northwestern Mutual indicates that many Americans believe they need $1.46M to retire comfortably, but actual savings vary widely based on individual circumstances.

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The average American believes they need exactly $1.46 million to retire comfortably according to Fidelity the average Baby Boomer has approximately $249,000 in their 401(k) and $257,000 in an IRA as of recent data, which may or may not reflect individual retirement readiness. Relying on arbitrary, blanket numbers ignores critical personalized variables like tax location, lifestyle objectives, and health costs . True retirement confidence is achieved by calculating the exact net spendable income your portfolio must generate month after month, rather than chasing a generic accumulation target.

Host Dean Barber and Chris Rett, CFP®, AIF® dive into the stark realities of the 2026 retirement readiness landscape.

Key Learning Outcomes
- The 401(k) Loan Epidemic: Borrowing from your retirement plan for non-emergencies permanently derails the power of compounding and introduces major tax traps.

- The Retirement Psyche: Successful execution requires retiring to a purpose or passion (such as volunteering, pilgrimage, or church service) rather than just fleeing a stressful job.

- Rational vs. Irrational Fear: Accumulators face such intense anxiety over outliving their savings that they will frequently choose to "live broke" in retirement before actually running out of capital.

- The Roth Disconnect: Despite the potential long-term tax benefits associated with qualified Roth distributions, relatively few Gen X and Baby Boomer investors are actively contributing to the Roth portion of their employer-sponsored retirement plans.

- Warm vs. Cold Gifting: High-net-worth families rarely regret expanding their retirement budgets to fund international trips or family vacations while they are still healthy enough to enjoy them.

Video Chapters
The Baseline Metrics
• 00:00 – Cold Open
• 01:07 – How much do I need to retire comfortably?
• 03:47 - Will I pay more taxes if my money is sitting in a Traditional 401(k) instead of a Roth?
The Savings Gap & Psychology
• 04:53 - How much has the average boomer saved for retirement?
• 10:48 - Why do I feel like I'm going to run out of money even though I've saved for retirement?
The Customization Layer
• 18:45 - Is a generic target date fund in my 401(K) bad?
• 21:16 – What is a "brokerage link" to open better investment options?
• 24:05 - Is taking an outstanding loan against my retirement bad?
The Cost of Living & Gifting
• 26:30 - How much money will I spend on traveling in retirement?
• 30:25 - Why are only 12% of Baby Boomers using a Roth 401(k)?
Sources:
Here’s What Americans Think They’ll Need for Retirement
https://www.northwesternmutual.com/life-and-money/what-do-americans-think-theyll-need-for-retirement/
How do your retirement savings stack up?
https://www.fidelity.com/learning-center/personal-finance/average-retirement-savings
Retirement Income Strategy: How Much Do You Need?
https://www.youtube.com/watch?v=tLtUEGkBdBQ
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investment advisory services offered through Modern Wealth Management, LLC, a registered investment adviser. The views expressed represent the opinion of Modern Wealth Management a Registered Investment Adviser.

Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.