Washington
District of Columbia
New Study: Washington, D.C. Residents Believe They Will Need $1.67 Million To Retire Comfortably
Business and Professional
April 23, 2025
According to Northwestern Mutual 2025 Planning & Progress Study:
• More than half (54%) think it’s somewhat or very likely they will outlive their savings
• Nearly one in three (32%) wonder if Social Security will be there when they need it
WASHINGTON, D.C., April 14, 2025 – The “magic number” to retire, according to residents of Washington, D.C. surveyed, is $1.67 million, a $270,000 increase from the same number in 2024. This is also higher than the $1.26 million “magic number” for people across the U.S. in 2025. Meanwhile, less than one in three (31%) of Washington, D.C. residents with any retirement savings say that they have just one year or less of their current income saved for retirement – and more than half (52%) has 3x their income or less saved.
These are the latest findings from Northwestern Mutual’s 2025 Planning & Progress Study, the company’s proprietary research series that explores the attitudes, behaviors and perspectives of people in Washington, D.C. and the U.S., across a broad set of issues impacting their long-term financial security.
In Washington, D.C., nearly a quarter (24%) have less than 1x their income saved for retirement, more than the national average of 17%.
As a multiple of your current income, approximately how much do you have saved for retirement?
| Of those with any retirement savings | All U.S. | Washington, D.C. residents |
| Less than 1x my income | 17% | 24% |
| 1x | 8% | 7% |
| 2x | 15% | 11% |
| 3x | 12% | 10% |
| 4x | 9% | 5% |
| 5x | 7% | 9% |
| 6x | 4% | 3% |
| 7x | 4% | 5% |
| 8x | 3% | 2% |
| 9x | 1% | 2% |
| 10x | 6% | 7% |
| More than 10x my income | 9% | 10% |
| Not sure | 5% | 5% |
More than half (51%) of Washington, D.C. residents think it’s somewhat or very likely they will outlive their savings, according to the study. Only 16% of residents feel confident enough to say the prospect of outliving their wealth is “very unlikely.” Meanwhile, almost one-third (32%) say they have not taken any steps to address it.
In addition:
- Washington, D.C. residents on average began saving for retirement at age 29, slightly younger than the national average of age 31. They plan to retire when they are 66, a year older than the national average of age 65.
- More than half, 54%, feel they will be financially prepared for retirement when the time comes.
“Here in Washington, D.C., many people are worried about retirement – they see it as a real possibility that they will outlive their savings,” said Edward “Ted” Shanahan, Wealth Management Advisor for Northwestern Mutual’s Blueprint Financial Group. “Naturally this can be a cause of financial anxiety. All that said, retirement planning is unique to the people who are retiring. Everyone should determine their own ‘magic number’ based on where they live and what they want to do in retirement. That’s where a financial plan, built in partnership with a trusted financial advisor, can help.”
Keeping everything balanced matters
Half of Washington, D.C. residents (50%) say that they place too much emphasis on building wealth and growing their assets without dedicating enough to protecting their assets and managing against risks with life insurance or disability insurance.
“A comprehensive plan – one that combines investments and insurance – is proven to deliver superior financial outcomes than a plan that simply includes investments,” said Shanahan. “Those with only an investments plan are left vulnerable when the unexpected happens. Meanwhile, plans that combine both investments and insurance products provide the owner with much more financial confidence.”
Social Security and inflation burn a hole into top retirement concerns
When it comes to people’s burning questions about retirement, concerns about Social Security and inflation are more pressing than some major planning challenges including outliving life savings, planning for long-term care, managing taxes and budgeting for healthcare.
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Washington, D.C. residents’ Top “Burning Questions” About Retirement (percentage indicates inclusion in top three)
How much money will I need to retire comfortably? 45% Will Social Security be there when I qualify for it? 32% Is it possible I could outlive my savings? 26% How can I plan for potential long-term care needs? 28% What if inflation rises when I’m retired? 28% How will taxes impact me in retirement? 30% How should I budget for healthcare expenses? 20% Will I have enough to leave behind assets for loved ones or charitable causes I care about? 17% What if the stock market drops when I’m retired? 15%
On the topic of Social Security, 35% in Washington, D.C. say that they plan to delay receiving their benefits as long as possible to maximize their monthly benefit. Under half (41%) say they will start receiving their benefit when they hit their full retirement age, while 24% say they will start to receive payments as soon as they are eligible, even though their monthly benefit may be reduced.
“The age at which people begin to claim Social Security benefits matters,” said Shanahan. “If they activate payments at 67 instead of 62, their checks could grow by 30%, with an additional 24% if they wait until age 70. A trusted advisor can help people crunch the numbers and understand what works best for them in retirement.”
Not your parents’ retirement – and probably not done with work, either
The research found eight in ten Washington, D.C. residents (80%) say their vision of retirement is different than how their parents’ generation viewed it, and nearly one third (31%) say they expect their retirement to last 10+ years longer than their parents.
The biggest differences in retirement life that people expect, generation over generation, are: more travel (56%), more activities that are personally fulfilling (46%), more time with friends and family (49%), more work (36%) and more volunteering (26%).
On the subject of work, 41% in Washington, D.C. plan to work (or are currently working) during their retirement years.
The reason people choose to work is split nearly evenly between those who say they want to continue feeling useful / stimulated (56%) and those who say they will need the additional income to afford retirement (52%). Meanwhile, 44% want additional income to fund their preferred retirement lifestyle.
Among Washington, D.C. residents who said they plan to work in retirement, 60% said that they would work either part-time or full-time at a different job, while 24% expected to pick up a “side gig” with flexible hours. Meanwhile, 15% said that they would work part-time at the same job.
“I find clients are enamored by the idea of financial independence rather than retirement,” said Shanahan. “They are looking forward to the day they can wake up and go somewhere because they want to, not because they financially have to. That might mean continuing to work because of the fulfilment they receive or pursue a passion that doesn’t provide income.”
About The 2025 Northwestern Mutual Planning & Progress Study
The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. The survey was conducted online between January 2 and January 19, 2025. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and propensity to be online to bring them in line with their actual proportions in the population. A complete survey methodology is available.
About Northwestern Mutual
Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what's most important. With nearly $700 billion of total assetsi being managed across the company’s institutional portfolio as well as retail investment client portfolios, more than $38 billion in revenues, and $2.4 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 110 on the 2024 FORTUNE 500 and was recognized by FORTUNE® as one of the "World's Most Admired" life insurance companies in 2025.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.
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1 Includes investments and separate account assets of Northwestern Mutual as well as retail investment client assets held or managed by Northwestern Mutual.