One of the main concerns of today’s society is retirement. A 2025 study revealed that American adults believe they need around $1 million to retire and have a comfortable life at age 65. We often hear the phrase that young people today won’t be able to retire, but the fact is that today’s retirees already have a hard time making ends meet without worries.
The majority (54%) believe they will not be financially prepared for retirement when the time comes
These are worrying results, because if this is the thinking of an entire generation, what does it hold for the next? Considering that the cost of living increases every year, among Americans who have retirement savings, one in four (25%) say they have only one year or less of their current annual income set aside for it. Furthermore, 52% have saved three times their current annual income or less. The majority (54%) believe they will not be financially prepared for retirement when the time comes.
New York is among the most expensive states in the United States to retire
It’s true that many of these analyses and some conjectures depend on the location where one retires. Retiring in New York City is not the same as retiring in New Mexico. New York is among the most expensive states in the United States to retire without suffering financial setbacks. The cost of living index in this jurisdiction is 123.4, which means the price level is 23.4% higher than the national average.
A person would need to have at least US$1,292,753 saved if they plan to retire in New York
Researchers calculated how much savings are required if a person uses 4% of their capital each year to cover expenses for 25 years. This determined that a person would need to have at least US$1,292,753 saved if they plan to retire in New York. Other, more conservative projections suggest that US$2 million is a more realistic figure, especially if the person wants to retire in an expensive location or has a long life expectancy.
Therefore, the where and the how are very important when analyzing how much money is actually needed to live a carefree retirement. The study in question here says that American adults believe they need $1.26 million to retire comfortably at age 65. That projected figure has increased considerably since 2020, when the expected retirement amount by then was reportedly $951,000.
Other data from the studies provide estimates for this category:
Kansas:
Cost of Living Index: 86.7
Annual Expenses after Social Security: $29,658
Savings Needed: $741,455
Mississippi:
Índice de costo de vida: 87,5
Gastos anuales tras Seguridad Social: US$30.139
Ahorros necesarios: US$753.472
California:
Índice de costo de vida: 144,7
Gastos anuales tras Seguridad Social: US$64.509
Ahorros necesarios: US$1.612.716
Food prices, rents, and home sales have all risen… But what isn’t rising at the same rate are wages
The conclusion we can draw is that the forecasts are not favorable for those with less purchasing power. Especially if we consider the current situation, not only in the United States, but worldwide. Food prices, rents, and home sales have all risen… But what isn’t rising at the same rate are wages. This is the most worrying point. The rich are getting richer, and it’s becoming increasingly difficult for the poor to achieve the purchasing power that will help them live a better lifestyle and therefore be able to save enough for a peaceful, worry-free retirement.
