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How comfortable do you really need to be in retirement? And what if you’re not close?
Falling behind in any area of life can be frustrating, but comparison is the thief of joy—especially when it comes to money.
Former Berkshire Hathaway CEO Warren Buffett put it this way: “As an investor, you get something out of all the deadly sins – except envy,” he told shareholders in 2010 (1). “It is very foolish to be jealous of others.”
But what should 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 have managed to save $250,000 in retirement accounts and build $200,000 to $300,000 in home equity. On top of that, they’re expecting a $1,100 monthly pension, $1,800 to $2,300 in combined Social Security benefits, when retirement comes.
For years, the couple felt relatively confident about this retirement plan — until a colleague in the same salary range mentioned they had $700,000 saved in their 401(k).
Now the couple are worried they’re behind – and tired of 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 the retirement numbers — and what you can do if you haven’t hit them yet.
According to the Federal Reserve (2), the average American aged 55 to 64 has saved $537,560 for retirement. That’s more than double the $250,000 the couple has in retirement savings.
But it’s important to note that this is a Federal Reserve number meaning Savings – which is affected by multiple earners which pulls this number up. If you look the middle Savings, which is less than the extreme, 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 29% of retirees, who reported having no savings at all in a 2026 survey by Clever Real Estate (4).
Still, couples are nowhere near the number many believe they need to retire comfortably. According to Northwestern Mutual, the “magic number” the average American retires with is $1.26 million (5).
Read more: Approaching retirement with no savings? Fear not, you are not alone. Here are 6 easy ways you can catch up (and fast).
There are other numbers worth crunching that affect the couple’s retirement.
First, they are expecting a pension payment of $1,100 per month. In just 10 years, that’s the equivalent of having another $132,000 in retirement — and if they live long enough, that payoff is coming, so it could be worth a lot more.
In addition, they have an estimated $1,800 to $2,300 in Social Security benefits, depending on when they begin withdrawing benefits. And the longer they delay withdrawing it, the higher their monthly payments will be until age 70.
The couple should consider working for a few years if they are able. However, whether they fall behind in retirement savings depends a lot on their expenses and any additional income.
For example, if they sell their home and get $300,000 back in equity, that puts them in a great position. But they will still need to account for housing costs – and these will depend on their specific needs.
Ultimately, retirement savings are personal. The amount you need may vary based on your spending habits, your preferred retirement lifestyle and your medical history.
To calculate a retirement number that works for your needs, a rule of thumb is to take 80% to 90% of your current expenses and multiply them by 25. But that’s just back-of-the-napkin math.
To arrive at a more accurate number, you need to consider personal factors such as health care costs and housing. But these calculations can be complicated if you don’t know what you’re doing.
This is where it can be worthwhile 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, like your zip code, and Advisor.com will match you with local believers in minutes.
Book a free, no-obligation rental call to make sure they’re right for you.
If you’re feeling behind, note that people over 50 can make catch-up contributions to retirement accounts.
In 2026, people in this age group can contribute $32,500 per year to a 401(k) and $8,600 per year to an IRA (6). Some 401(k) plans allow people between 60 and 63 to contribute an additional $3,250 per year, bringing their maximum 401(k) contributions to $35,750.
But you shouldn’t feel like you need to max out those allowances. Even adding $500 to $1,000 per month can help substantially over the next five to seven years.
The important thing to remember is that you are building saving habits.
When it comes to saving habits, being smart about what you do with your spare change can make a difference over 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? This is now a 75-percent investment in your future. And if you want to make your investments, you can also set up recurring direct deposits.
Sign up today and get a $20 bonus investment to get things started.
Even before you retire, it may be a good idea to consider reducing your assets. You can do this by living in a smaller home, owning fewer cars, or selling unused assets, such as recreational vehicles.
These moves can help unlock cash flow and increase your retirement savings. After all, every dollar not spent is a dollar that could be invested for retirement.
But even if you downsize, you still can’t downsize completely.
In that case, you’ll want to think of more creative ways to reduce monthly expenses on things you can’t live without.
You’ll probably still need at least one car in retirement.
And a major recurring expense for many Americans is car insurance—one that many people overpay for without even realizing it. This can be a costly mistake, as the national average for car insurance in 2025 was $2,524 per year, according to research conducted by US News (7).
With numbers like that, it pays to shop around for the best deal. However, rates can vary widely depending on your state, driving history and vehicle type.
That’s 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, depending on factors like your driving history and vehicle type.
At this point, you’re maxing out retirement contributions and reducing some expenses, but you’re not quite there yet—and retirement is fast approaching. what do you do
May have to keep working.
But don’t worry, there are options. If full-time work feels unsustainable, consider scaling back time or exploring part-time options to transition into a less demanding (but still income-generating) role.
In fact, it can be a smart choice: Working part-time from 62 to 67 can delay Social Security benefits, allowing your investments to grow.
And you’re not alone in making this decision, either—according to the Bureau of Labor Statistics (8), about 19% of Americans over age 65 are still participating in the labor force.
If part-time retirement appeals to you, reputable organizations like AARP are designed to support retirees like you in your golden years.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits – potentially saving you thousands.
Even better, AARP members get discounts on almost everything—from prescription and dental plans to travel, entertainment and insurance.
Sign up with AARP today and get 25% off your first year.
We rely only on vetted sources and reliable third-party reporting. For details, see our editorial ethics and guidelines.
Forbes (1); 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. It is provided without warranty of any kind.
