Looking to retire soon? Most Des Moines residents believe you need this much to retire comfortably.
A new study by Northwestern Mutual surveyed more than 4,600 adults across the United States earlier this year to gauge people’s attitudes and perspectives about their long-term financial security. Researchers at Northwestern Mutual reported a $200,000 drop in what Americans believe is the “magic number” to retire comfortably compared to last year’s survey results.
How much do Des Moines residents think is needed for retirement, according to Northwestern Mutual?
Des Moines residents surveyed believe they need $1.21 million to retire comfortably, slightly below the national average of $1.26 million. In 2024, Americans claimed $1.46 million was the figure they’d feel comfortable retiring with, according to Northwestern Mutual.
“One explanation for (2025’s amount) could be inflation — while still people’s #1 concern — isn’t as elevated as it was in recent years,” John Roberts, chief field officer at Northwestern Mutual, said in a news release. “Inflation is often described as ‘sticky’ because it can take a long time for people’s attitudes about it to change.”
Since reaching a peak of 9.1% in June 2022, inflation has gradually declined in recent years. The annual inflation rate was 2.3% last month, down from 2.4% in March, according to the U.S. Bureau of Labor Statistics Consumer Price Index.
Half of Des Moines residents worry they’ll outlive their savings
More than half of Des Moines residents — 55% — believe it’s somewhat or very likely their savings won’t last through retirement, with 56% reporting they’ve saved less than three years’ worth of income and 27% less than a single year’s income.
Only 16% of Des Moines residents surveyed feel confident they’ve saved enough to last through retirement.
Some people, 40%, said they plan to work — or are currently working — during their retirement years, with 51% of them saying they will choose to continue working even if they’re financially well off to stay stimulated, feel useful or just to earn additional income.
What is the average retirement age for Des Moines residents?
According to Northwestern Mutual, Des Moines residents on average start saving for retirement at 27 and retire at the age of 66. Des Moines residents, on average, start saving four years earlier than the U.S. average.
Northwestern Mutual suggests starting to save earlier to reach the national average of $1.26 million by age 65.
“Individuals starting at age 20 would need to invest $330 per month, others starting at age 30 would need to set aside $695 per month – assuming a 7% rate of return compounded daily,” Northwestern Mutual said. “The longer they wait, the more they need to invest.”
Americans had median retirement savings of $87,000 in 2022, according to the most recent data from the Survey of Consumer Finances.
Cooper Worth is a service/trending reporter for the Des Moines Register. Reach him at cworth@gannett.com or follow him on X @CooperAWorth.
This article originally appeared on Des Moines Register: Des Moines residents need at least $1 million to retire comfortably, report finds
Reporting by Cooper Worth, Des Moines Register / Des Moines Register
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