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How much do you really need to be comfortable in retirement? And what do you do if you’re not even close?
Feeling behind in any area of life can be frustrating, but comparison is the thief of joy—especially when it comes to money.
Warren Buffett, the former CEO of Berkshire Hathaway, put it this way: “As an investor, you get something out of all the deadly sins—except envy,” he told shareholders in 2010 (1). “Being envious of someone else is pretty stupid.”
But should envy be avoided when it comes to retirement?
Consider this situation: A 59-year-old nurse and her husband have been working hard for decades. Together, they managed to save around $250,000 in retirement accounts and built up $200,000 to $300,000 in home equity. In addition, they expect a monthly pension of $1,100, along with combined Social Security benefits of $1,800 to $2,300, when it comes time to retire.
For years, the couple felt relatively confident about this retirement plan—until a co-worker with a similar salary level mentioned that he had saved $700,000 in his 401(k).
Now the couple are worried they are falling behind – and exhausted at the thought of having to work another eight years to catch up.
Are they right to worry? And how much is really needed for a comfortable retirement?
Here’s a look at retirement numbers — and what you can do if you haven’t hit them yet.
According to the Federal Reserve (2), the average American between the ages of 55 and 64 has saved $537,560 for retirement. That’s more than twice the $250,000 in retirement savings this couple has put aside.
But it’s important to note that the Federal Reserve’s number is average savings – which is heavily impacted by high earners increasing this number. If you look at median savings, which are less skewed by extremes, the average is actually $185,000 (3).
That means our couple is actually ahead of most Americans in their age group. And they’re well ahead of the 29% of retirees who, in a 2026 survey by Clever Real Estate, said they had no savings at all (4).
However, the couple is nowhere near the number many believe is necessary to retire comfortably. According to Northwestern Mutual, the average American believes the “magic number” for retirement is $1.26 million (5).
Read more: Approaching retirement with no savings? Don’t panic, you are not alone. Here are 6 easy ways to catch up (and fast)
There are other numbers worth crunching that affect this couple’s retirement.
First, they expect a pension of $1,100 a month. In just 10 years, that’s the equivalent of another $132,000 in retirement — and if they live longer, that payment keeps coming, so it could be worth a lot more.
In addition, they are worth an estimated $1,800-$2,300 in Social Security benefits, depending on when they start drawing their benefits. And the longer they delay withdrawing it, the higher their monthly payments will be – until age 70.
This couple should consider working for a few more years if they are able. However, whether they fall behind in their retirement savings depends largely on their spending and any additional income.
For example, if they sell their house and withdraw their $300,000 in equity, that would put them in a great position. But they will still need to factor in housing costs – and these will depend on their specific needs.
Ultimately, saving for retirement is personal. The amount you need can vary based on your spending habits, your desired retirement lifestyle, and even your medical history.
To calculate a retirement number that works for your needs, the rule of thumb is to take 80% to 90% of your current expenses and multiply it by 25. But that’s just back-of-the-napkin math.
To arrive at a more accurate number, you’ll need to consider personal factors such as health care and housing costs. But these calculations can get complicated if you don’t know what you’re doing.
This is where it can be helpful to work with a professional advisor who can help you find a retirement number that works for you.
If you’re not sure where to find one, Advisor.com can help you find qualified financial advisors in your area.
All you have to do is enter some basic information, such as your zip code, and Advisor.com will match you with local fiduciaries in just minutes.
Book a free no-obligation call to make sure they’re right for you.
If you’re feeling behind, remember that people over 50 can make catch-up contributions to retirement accounts.
In 2026, people in this age group can contribute up to $32,500 per year to a 401(k) and $8,600 per year to an IRA (6). Some 401(k) plans also allow people between the ages of 60 and 63 to contribute an additional $3,250 per year, bringing the maximum 401(k) contributions to $35,750.
But you don’t necessarily have to feel like you have to max out those allowances. Even adding $500 to $1,000 a month could help substantially over the next five to seven years.
The important thing to remember is that you are building saving habits.
Speaking of saving habits, being smart about what you do with your spare change could make all the difference to a lifetime of savings.
With Acorns, you can now turn that spare change from your everyday purchases into an investment opportunity.
The app works like this: Make a purchase on a linked credit or debit card, and Acorns will round it up to the nearest dollar, then invest the difference in a diversified portfolio of ETFs.
That $4.25 coffee? Now that’s a 75 cent investment in your future. And if you want to increase your investment, you can also set up a recurring direct deposit.
Sign up today and get a $20 bonus investment to get things started.
Even before you retire, it might be a good idea to consider reducing your assets. You can do this by moving to a smaller home, owning fewer cars, or selling unused assets such as recreational vehicles.
These moves can help unlock cash flow and boost retirement savings. After all, every dollar not spent is a dollar that can be invested for retirement.
But even if you cut back, you still can’t cut back completely.
In that case, you might want to start thinking about more creative ways to reduce your monthly expenses on the things you can’t live without.
You will probably need at least one car in retirement.
And a major recurring expense for many Americans is auto insurance — which many people overpay for without realizing it. This could be a costly mistake, considering that the national average for car insurance in 2025 was $2,524 per year, according to research by US News (7).
With numbers like these, it pays to shop around for the best deal. However, rates can vary greatly depending on your condition, driving history and vehicle type.
This is where OfficialCarInsurance.com comes in. With OfficialCarInsurance.com, you can easily compare quotes from multiple insurers like Progressive, Allstate and GEICO to make sure you’re getting the best deal.
In just two minutes, you can find rates as low as $29 per month based on factors like driving history and vehicle type.
Right now, you’re maxing out retirement contributions and cutting back on certain expenses, but you’re not there yet—and retirement is coming up fast. what are you doing
You may still have to work.
But don’t worry, there are options. If full-time work seems unsustainable, consider exploring part-time options to reduce hours or move to a less demanding (but income-generating) role.
In fact, it might be the smart option: Working part-time from age 62 to 67 can delay Social Security benefits, allowing your investments to grow.
And you wouldn’t be alone in making that decision, either—about 19 percent of Americans over 65 are still in the workforce, according to data from the Bureau of Labor Statistics (8).
If part-time retirement appeals to you, reputable organizations like AARP are designed to support retirees like you in your golden years.
AARP members have access to guides that can help you get the most out of Social Security, choose the right Medicare plan, and discover other government benefits that can save you thousands.
Even better, AARP members get discounts on almost everything—from prescriptions and dental plans to travel, entertainment, and insurance.
Join AARP today and get 25% off your first year.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
Forbes (1); Board of Governors of the Federal Reserve System (2), (3); Clever Real Estate (4); Northwestern Mutual (5); IRS (6); US News & World Report (7); Bureau of Labor Statistics (8)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
