Saving for retirement: 5 On Your Side has how to stay ahead

The ideal size of a retirement nest egg has surged since last year, with more Americans now fearing they will outlive their money. 5 On Your Side shares what you should do right now to stay ahead.

The "magic number" needed for a comfortable retirement just got a lot bigger. Northwestern Mutual's latest study finds Americans estimate they'll need about $1.46 million in their golden years, up $200,000 from a year ago.

The reasons? Persistent inflation, longer life expectancies and uncertainty surrounding the future of Social Security.

The firm surveyed more than 4,300 adults and found nearly half don't expect to be financially prepared for retirement and worry they'll outlive their savings. Among Generation X, those generally closest to retirement, more than one in four say they have no retirement savings at all.

Federal data from 2022 shows the typical household between the ages of 65 and 74 had approximately $200,000 saved for retirement.

Fidelity offers what may be a more practical benchmark: Save 10 times your annual salary by age 67.

Using the Census Bureau's median household income of just over $83,000 in 2024, that works out to roughly $830,000 for retirement.

Don't get discouraged by the big number. Most financial experts agree simply getting started is the key.