Nov 19, 2025
Much of retirement planning is focused on the so-called “magic number”: how much you need to have saved to live comfortably and confidently without employment income.
Today, most Americans believe that magic number is $1.26 million, according to a 2025 NorthWestern Mutual survey (1).
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But the complexity of your golden years go way beyond a single number. This number tells you nothing about how your personal finances compare to your peers and whether you’re likely to feel comfortable and confident in retirement.
Even if you don’t have a $1.26-million nest egg, here are seven signs you’re doing better than most retirees and can afford to relax.
1. You have enough income to cover monthly needs
While you can’t anticipate all your monthly expenses, you will need at least enough guaranteed retirement income — including pensions and Social Security — to pay for food, shelter, and utilities.
In a 2022 survey, The Employee Benefit Research Institute (EBRI) found that roughly half of all retirees spend less than $2,000 a month, while one in three spent between $2,000 and $3,999 a month (2).
So if your guaranteed retirement income delivers $4,000 a month, you’re outperforming most other retirees.
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2. You have no high-interest debt
Unfortunately, carrying high-interest consumer debt into retirement has become all too common. A whopping 85% of households led by someone 65 and older had credit card debt, according to the National Council on Aging (3).
Meanwhile, roughly 9% of older Americans have some form of medical debt. One in three retirees (36.8%) is paying off auto loans and one in five has personal loans to pay down, according to LendingTree (4).
Managing consumer debt is tough on a limited fixed income. A sudden spike in interest rates could derail your retirement plan.
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So if you’ve managed to pay off all your non-mortgage debt by the time you retire, you’re in a stronger financial position than many seniors.
3. You have multiple streams of income
Many older Americans make the mistake of relying on Social Security as their sole source of income.
As of 2024, more than one in four retirees (nearly 27%) were living solely off Social Security, according to the Seniors League (5).
Equally concerning is the fact that Social Security benefits represent more than half the income of most (67%) American retirees.
That means the majority of older adults in the U.S. are vulnerable to any changes or cuts to this crucial program.
If you have multiple sources of income beyond Social Security — such as dividends, income from rental properties or pensions — you’re in a much better position.
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4. You live below your means
About 31% of retirees said their regular spending was a little or much higher than they can afford, according to the EBRI (6).
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But if your spending is below your income, you’re doing something rare: accumulating capital in retirement.
This excess cash can really bolster your personal finances in your golden years.
5. You’re still investing
If you’re not just saving money in retirement but proactively investing it, you’re benefiting from the market’s growth engine.
As your nest egg continues to expand in your senior years, you’re much less likely than your peers to outlive your savings.
6. You have a clear retirement plan
According to a Gallup poll, 41% of all American households have no tax-advantaged retirement savings plan in place, such as 401(k), 403(b) or IRA (7).
So what about older Americans? Do more of them have 401(k)s and IRAs? No. Nearly 40% of Americans aged 65-plus have no such savings plan.
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If you’ve been actively saving and investing in these accounts, and started at a younger age, you’re doing better than many of your peers.
7. You have an estate plan
According to Trust & Will, only 31% of Americans have a formal will.
The majority (55%) have no estate plan at all ()].
So if you have a plan for what happens to your assets and income sources after you’re gone, you’re putting yourself and your loved ones in a better position than most. One crucial thing to do if you’re behind If you’re feeling behind on any of these items, the most important thing you can do is to reach out to a financial advisor to create a retirement plan.
Such a plan can help you systematically pay off debt, lower your spending or boost your income from multiple sources over time.
It’s never too late to start making minor adjustments for a better retirement.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Northwestern Mutual (1); Employee Benefit Research Institute (2, 6); National Council on Aging (3); Lending Tree (4); Seniors League (5); Gallup (7); Trust & Will (8)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
