How Much Americans Say They Need Each Month To Retire Comfortably in 2026
Most Americans have a high price tag in mind for a secure retirement.
More than half (53%) say they would need over $5,000 a month to retire comfortably, according to a recent Kickresume survey. Here's a look at what that expectation really means, why Americans are falling behind this goal and what they can do to catch up.
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How Much Retirement Savings Does $5K a Month Require?
Using the 4% withdrawal rule, being able to live off $5,000 a month requires about $1.5 million in retirement savings. Even more modest goals require a larger nest egg than you might expect: 57% of workers across the globe said they would need a minimum of $3,500 a month, which translates to roughly $1 million in savings.
While these figures may sound high, they reflect the reality of rising housing, healthcare and everyday living costs.
"Retiring on $5,000 a month can definitely be a comfortable amount for many people," said Peter Duris, CEO and cofounder of Kickresume. "The amount of money you need to be comfortable depends on the cost of living in your area and your current lifestyle."
To find the right number for you, Duris recommends the 80% rule, which suggests you'll likely need about 80% of your pre-retirement income to maintain your standard of living once you stop working.
Why Americans Are Falling Behind on Retirement Savings
Despite these retirement income expectations, relatively few Americans appear to be taking the steps necessary to reach them. Only 44% are investing, fewer than half (47%) save regularly and 13% aren't doing anything to prepare.
“One likely reason for this gap is the rising cost of living," Duris said. "When people are struggling to cover everyday necessities, saving and investing for a retirement decades away naturally becomes a lower priority than getting through the month. That pressure doesn't just reduce how much people can set aside — it can push some to stop preparing altogether.”
How To Catch up on Retirement Savings
If you're behind on retirement savings, the key is to take action as soon as possible.
“For those able to, contributing to your 401(k) and opening up retirement accounts are some of the best ways to save," Duris said. "It’s also worth looking into investing to take advantage of compound interest. Before investing, make sure you do your research and understand the risks associated with it."
Another way to boost your retirement savings outlook is to increase your earnings. The survey found that 25% of workers believe that having a higher income would help them the most when it comes to improving their chances of a comfortable retirement.
"To get on track, it could be worth either asking your employer for a raise or looking for a new job with the chance to earn more," Duris said. “What some workers are doing to boost their income is starting a side hustle. In a past survey, we found that 61% of employees have one, and almost a third of them earn more than $500 a month from it. Eighteen percent earn more than $1,000 — enough to make a real dent in that $5,000 a month goal."
While reaching a $1.5 million nest egg can seem overwhelming, increasing retirement contributions, investing consistently and finding ways to boost income can help workers close the gap one step at a time.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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