Americans are adjusting – upwards – when it comes to their plans to retire in comfort.<\/a><\/p>\n Most people believe they will need to save $1.5 million to see them through their golden years – a $200,000 jump from last year, according to a survey<\/a> by financial services company Northwestern Mutual. But respondents seemed unfazed by their upward savings adjustment; in fact, the percentage of those who worried they would outlive their savings decreased year-on-year.<\/p>\n \u201cRetirement is increasingly complex, and Americans are responding by setting higher expectations for what they’ll need,\u201d COO John Roberts said in a statement<\/a>. <\/p>\n The poll captured the retirement views of 4,375 adults across the country from Gen Z to Boomers.<\/p>\n The reason for the uptick in retirement savings goals may come down to consumers\u2019 view of the broader economic landscape: from cuts <\/strong>to key federal healthcare programs to rising cost-of-living, said Jillian Hinshaw, owner of estate planning and bankruptcy law firm Hishaw Law, LLC. <\/p>\n \u201cLast year\u2019s cuts to Medicare and Medicaid, inflation and overall increase in the costs of living expenses has changed the outlook,\u201d Hishaw said in an email to The Independent. <\/p>\n Cuts to Medicare, the federal health care program for retirees, could lead to higher medical expenses<\/a> in retirement. Those expenses are already high – $345,000<\/a> for a household of two retirees for the duration of retirement, a 2025 study from Fidelity found.<\/p>\n However, the increased savings goal was not linked to heightened fears about savings running out. The percentage of people who believe they\u2019ll outlive their retirement savings<\/a> actually fell three percentage points year-on-year, from 51 per cent<\/a> in 2025 to 48 per cent this year. <\/p>\n This trend may be driven by responses from Generation X. Some 49 percent said they have at least four times their income saved, up from 41 percent in 2025. Another 49 percent of Gen Xers said they feel financially prepared, up three percentage points from 2025. <\/p>\n Overall, those with 401(k)s<\/a> ended 2025 with balances that were 11 percent higher<\/a> than the previous year, according to a Fidelity study. IRAs were up 7 percent year on year, and 403(b) retirement plans saw 13 percent annual gains. Rising retirement balances may be providing savers with peace of mind about their future.<\/p>\n Savings rates remained steady for the third quarter in a row, Fidelity noted, possibly indicating that increased daily costs aren\u2019t causing savers to pull back on their retirement contributions. <\/p>\n Positive year-on-year retirement account growth and steady rates seem to have made Americans committed to saving for later in life. <\/p>\n","protected":false},"excerpt":{"rendered":"Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The…\n","protected":false},"author":2,"featured_media":866135,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2499,16,15],"class_list":{"0":"post-867846","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116337067169202828","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/867846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=867846"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/867846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/866135"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=867846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=867846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=867846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Amid](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/04\/GettyImages-2235712754.jpg\")
Amid a higher cost of living and cuts to key government programs, Americans are adjusting how much they think they need to save for their retirement years (Getty Images)<\/p>\n![\"Double-digit](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/04\/GettyImages-2233997091.jpg\")
Double-digit year-on-year 401(k) growth at the end of 2025 may be one reason why consumers are less worried about running out of money in retirement (AFP via Getty Images)<\/p>\n