When people think about retirement, one number seems to come up over and over again: $1 million. It’s often tossed around in financial advice shows, blogs, and books as the “magic number” to retire comfortably.

But is that really how much you need? For most people, probably not.

Why Is Everyone Obsessed with $1 Million?

That number sounds nice and round. It feels like it should be enough to cover anything that might come up in retirement. But in reality, few people actually hit that target.

Studies show that almost half of those nearing retirement expect to have less than $500,000 saved—and a quarter say they’ll have less than $250,000. That’s a big gap from the million-dollar mark.

And if we look at actual savings? Households aged 45–54 typically have around $310,000 saved for retirement. For those aged 55–64, it’s about $530,000. A lot more realistic than that million-dollar dream.

One-Size-Fits-All Doesn’t Work for Retirement

Instead of focusing on some universal number, ask yourself:

• What kind of retirement do I actually want?
• Do you plan to travel the world?
• Downsize and move to a quiet town?
• Keep working part-time doing something you enjoy?

Your lifestyle choices have a huge impact on how much you’ll need.

And don’t forget about where you live. The cost of living varies dramatically from state to state—and even city to city. That million dollars might be more than enough in a small, affordable town, but in a big city with high costs? It could disappear faster than you think.

Some research estimates retirement costs in over 300 U.S. cities. In expensive areas, you might need close to $1.4 million. But in more affordable places, you might only need $780,000—maybe even less, especially if you own your home and live simply.

So the key takeaway is this: Don’t chase someone else’s number. Build a retirement plan based on your real needs.

Healthcare: The Elephant in the Room

One big expense that catches people off guard in retirement? Healthcare.

As we get older, our medical needs usually increase—and so do the costs. According to estimates, a 65-year-old couple retiring today will need around $330,000 (after taxes) to cover medical expenses throughout retirement.

And that’s assuming no serious health issues. If you or your partner have chronic conditions, or if your family has a history of long life spans, the number could be even higher.

Then there’s long-term care. If you ever need a home health aide or move into a care facility, the costs add up fast. A home health aide working 40 hours a week? About $68,000 per year. A private room in a nursing home? Over $100,000 a year.

While there is long-term care insurance, not everyone buys it—or can afford it. And government healthcare programs like Medicare often don’t cover this kind of care.

So when planning for retirement, don’t forget to factor in future health needs.

It’s Not Just About Saving—It’s About Cash Flow

Yes, saving for retirement is important. But it’s not the only piece of the puzzle.

Think about your other sources of income:

• Will you receive Social Security?
• Do you have a pension?
• Own property you could rent or sell?
• Expecting an inheritance?

Maybe you’ll continue working a bit after retiring, whether for extra money or simply because you enjoy it. That side income can help stretch your savings.

Also, delaying retirement—even by just a few years—can make a big difference. You give your investments more time to grow, and you may qualify for larger Social Security payments.

Practical Tips to Get Retirement-Ready

You don’t have to figure everything out at once. But here are some smart steps you can take now:

1.Automate Your Savings
Set up automatic contributions to your 401(k), IRA, or other retirement accounts. It removes the temptation to spend that money elsewhere—and makes saving a habit.

2.Consider Working Longer (If You Can)
Every extra year of work helps—more income, more savings, and potentially better Social Security benefits.

3.Plan for Medical Costs
If you have access to an HSA (Health Savings Account), consider using it to save for future medical expenses. It comes with tax advantages and can ease the burden later on.

4.Be Realistic About Moving
Relocating to a lower-cost area might sound great, but remember to weigh hidden costs: taxes, insurance, transportation, even being farther from friends and family.

5.Run Your Own Numbers
Use a retirement calculator to estimate what you will need based on your lifestyle. You might be surprised—it could be a lot less than $1 million.

It’s Not All or Nothing

The most important thing? Start planning—even if it feels like you’re behind.

You don’t need a perfect retirement plan to get started. Even reaching 80% or 90% of your goal is way better than having no plan at all.

Retirement isn’t a pass/fail test. It’s a gradual transition that can be shaped and adjusted along the way. What matters most is building a plan that fits your life—your needs, your values, and your dreams.

So instead of chasing a number that might not even apply to you, focus on building a retirement that actually makes you happy and secure.