New Study: San Diegans Believe They Will Need $1.29 Million to Retire Comfortably

The “magic number” to retire, according to residents of San Diego surveyed, is $1.29 million, compared with $1.26 million for people across the U.S. Meanwhile, just over one in four (27%) of San Diegans with any retirement savings say that they have just one year or less of their current income saved for retirement – and nearly half (49%) 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 San Diego and the U.S., across a broad set of issues impacting their long-term financial security.

In San Diego, nearly one in five (18%) have less than 1x their income saved for retirement, similar to the national average of 17%.

As a multiple of your current income, approximately how much do you have saved for retirement?

More than half (54%) of San Diegans think it’s somewhat or very likely they will outlive their savings, according to the study. Only 18% of residents feel confident enough to say the prospect of outliving their wealth is “very unlikely.” Meanwhile, more than a third (35%) say they have not taken any steps to address it.

In addition:

• San Diegans on average began saving for retirement at age 31 and plan to retire when they are 65.
• More than half, 52%, feel they will be financially prepared for retirement when the time comes.

"Retirement preparedness is a top concern for San Diegans as many worry that they will outlive their savings," said Scott Ashline, founder and private wealth advisor at Ashline Financial – a Private Client Group of Northwestern Mutual. "Retirement preparedness is a critical part of any financial plan and is unique to each individual. Everyone should come up with their own 'magic number' for retirement based on their current circumstances and vision for retirement. A trusted financial advisor can then assist with building a plan that is tailored to your needs."

Keeping everything balanced matters

Nearly six in 10 of San Diegans (59%) 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 well-rounded plan that accounts for investments and insurance is proven to provide better financial outcomes. Individuals who only have an investment plan will be left vulnerable when the unexpected happens," said Ashline.

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.

San Diegans’ Top “Burning Questions” About Retirement (percentage indicates inclusion in top three)

On the topic of Social Security, 25% in San Diego say that they plan to delay receiving their benefits as long as possible to maximize their monthly benefit. Under half (46%) say they will start receiving their benefit when they hit their full retirement age, while 29% say they will start to receive payments as soon as they are eligible, even though their monthly benefit may be reduced.

“If your financial plan allows for it, delaying Social Security payments can have a notable impact on your benefits. By holding off until 67, instead of 62, your checks could increase by 30%. Holding off until 70 could allow for an additional 24% growth,” said Ashline.

Not your parents’ retirement – and probably not done with work, either

The research found nearly eight in ten San Diegans (77%) say their vision of retirement is different than how their parents’ generation viewed it, and nearly one third (32%) 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 (53%), more activities that are personally fulfilling (46%), more time with friends and family (45%), more work (38%) and more volunteering (22%).

On the subject of work, 39% in San Diego 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 (55%) and those who say they will need the additional income to afford retirement (52%). Meanwhile, 45% want additional income to fund their preferred retirement lifestyle.

Among San Diegans who said they plan to work in retirement, 48% said that they would work either part-time or full-time at a different job, while 28% expected to pick up a “side gig” with flexible hours. Meanwhile, 23% said that they would work part-time at the same job.

"Retiring doesn't always mean completely stepping away from work, and we are seeing many clients redefining what retirement actually is," said Ashline. "As a new stage of life, retirement might mean taking on a passion project, devoting time to volunteering or traveling. A comprehensive financial plan helps keep options open, no matter what your circumstances are."

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 assets[i] 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.