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People often seek easy answers and shortcuts. This is not always a flaw, but a form of efficiency. So, it’s no surprise that many want a magic answer to one of life’s biggest financial puzzles: how much to save for retirement.
As a result, we often have a “magic number” in mind for our retirement savings.
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This year, the number Americans believe they’ll need to retire comfortably is $1.26 million, according to Northwest Mutual’s 2025 Planning & Progress Study.
This is $200,000 less than the estimated $1.46 million they believed they’d need when they were surveyed last year. It’s also more in line with the 2022 and 2023 estimates, indicating a reversal in thinking from last year to the years before.
It’s likely that the decline in the “magic number” is at least partially related to declines in inflation, which has been falling — albeit unevenly — since peaking in the summer of 2022.
As inflation has dipped, so too have expectations of future inflation, which were lower in 2024 than in the previous couple of years.
It may also be that views on retirement are changing. Whether by necessity or intention, about half of workers plan not to retire before the traditional age of 65, and 39% expect to retire only at 70 or older, or not to retire at all, according to a report by the Transamerica Center for Retirement Studies.
However, recent economic uncertainty suggests that sticking to the typical portfolio division of 60% stocks and 40% bonds might not be enough. In a see-sawing market, diversifying your portfolio as much as possible could help you weather market downturns or surging inflation.
Investing a portion of your portfolio in safe-haven assets like gold can hedge against this volatility. For instance, a gold IRA can help you combine the inflation and recession-resistant properties of gold with the tax advantages of an IRA.
One option is to work with Thor Metals to open a Gold IRA.
If you’re just getting going with gold, Thor Metals offers a free information guide to help you get a grasp on the market. You can also snag up to $20,000 in free metals on qualifying purchases.
Real estate investments are also known for their inflation-resistant characteristics. However, the cost of buying and managing rental properties can take a lot of time and money.
But the real estate market is vast — and you don’t always have to buy an investment property outright just to diversify your portfolio or build your retirement nest egg.
Instead, you can tap into the over $34 trillion home equity market with Homeshares, provided you have the capital.
With a minimum investment of $50,000, accredited investors can gain direct exposure to hundreds of owner-occupied home equity investments across the country — without the headaches of buying, owning or managing them.
The Homeshares U.S. Home Equity fund focuses on homes with substantial equity, utilizing Home Equity Agreements to help homeowners access liquidity without incurring debt or additional interest payments.
Homeshares also tries to help protect your investment. The fund is built with 45% downside protection, providing a bit of a safety net in the event of defaults.
With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering investors with capital on hand a low-maintenance alternative to traditional property ownership.
For those looking to take it one step further, First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties.
FNRP leases its properties to national brands like Whole Foods, CVS and Walmart, which provide essential goods to their communities. FNRP follows a triple net lease structure, allowing accredited investors to invest in these properties without worrying about tenant costs eating into potential returns.
Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Before you start worrying about achieving that ‘“magic number,” it’s a good idea to determine if it’s a reasonable goal. In 2023, the average expenditure for a household where the head of the household is 65 years or older was $60,087, according to the U.S. Bureau of Labor Statistics.
Let’s look at a hypothetical, but still common, situation. Most retirees will collect Social Security benefits, which averaged about $2,000 in April of 2025 — so $24,000 a year. If only one person collects benefits, the household would need an extra $36,000 to reach that pre-retirement $60,087 benchmark.
It’s also important to note that the Social Security trust fund that helps power these benefits is expected to run dry by 2033 unless Congress takes action, according to the Social Security Administration’s 2025 Trustees Report. This could result in benefits being slashed by 23%.
Research by the Employee Benefits Research Institute shows that retirees are already cutting back on expenditures because of insufficient income. This paints a worrying picture when combined with threats to Social Security benefits.
One area where many retirees — as well as those approaching retirement — can reduce their spending is home and car insurance. By reassessing existing policies and shopping around for better rates, it’s possible to free up cash that can go toward essential living expenses.
But comparing insurance rates can take time and effort that many retirees just don’t have.
Platforms such as OfficialCarInsurance.com allow you to compare rates from GEICO, Progressive, Allstate and others for free.
The process is simple: Just answer a few basic questions about yourself, your driving history and the vehicle you’d like to insure, then OfficialCarInsurance.com will show you the best deals available in your area.
Get started today and you can find auto insurance rates for as low as $29/month.
Home insurance is another pain point for many, but you can also drive down rates by shopping around.
With this in mind, OfficialHomeInsurance.com can help you find the lowest rates near you in under two minutes. Users were able to save an average of $482 per year by shopping around for better rates.
All you have to do is answer a few questions about your finances and mortgage, and OfficialHomeInsurance.com will comb through its database of over 200 insurers and display quotes from leading insurers near you.
Finally, remember that you typically don’t have to wait until your insurance is up for renewal to change policies.
It’s also important to keep in mind that everyone’s “magic number” is different., Finding your number will mean taking an honest look at your financial situation.
For example, where you plan to retire can make a big difference, as can what you plan to do in retirement.
After all, retirement is a very personal thing. If you want to find out what your own “magic number” might be, but don’t know where to start, it could be worthwhile to speak with a financial advisor.
Hiring a financial advisor can be a lifelong commitment. So, hiring reputable fiduciaries — those who are legally required to act in your best interest — can pay off over the long run.
You can find a vetted FINRA/SEC-registered expert near you for free with Advisor.com. Their network of advisors are fiduciaries, so you can trust that the advice you’re getting is unbiased.
You can set up an introductory call with no obligation to hire with your match to see if they’re the right fit for you.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
