The Retirement Metric More Important Than Your 401(k) Balance
Everyone shoots for a target, but the big number may not be as important as you think it is.
Overview
Americans believe they need $1.46 million in savings to retire comfortably, according to a recent survey by Northwest Mutual. That number was up 15% over the previous year, but in line with the figure from 2024. It is a lot of money, but don't feel bad if your 401(k) balance doesn't come close to that. Here's the more important number to watch.
It is normal for people to aim for something as they look to a long-term goal. One million dollars, or $1.46 million, is a target of sorts. And it isn't a bad one, but it may miss the mark when it comes to retirement. Sure, having a giant 401(k) balance is a good thing. In fact, the bigger the better. However, your 401(k) balance doesn't account for something that may be even more important to your future: your retirement spending.
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Originally published at www.fool.com.