Americans say retirement is possible, but it's going to cost more, new survey finds

• A new Northwestern Mutual study showed that Americans are expecting to save more and work longer to retire comfortably.
• Respondents to the survey said they'll need at least $1.25 million to retire, according to the report.

Americans say retirement is getting more expensive.

A survey released on Tuesday by financial services company Northwestern Mutual showed that Americans believe the magic number to comfortably retire has gone up to $1.25 million – a 20% increase from 2021.

The study, based on polling of 2,381 American adults, also said that the expected retirement age is up from 62.6 in 2021 to now 64.

Christian Mitchell, chief customer officer at Northwestern Mutual, pointed at the current economy as an indicator of why Americans may be feeling less positive about their retirement.

"It's a period of uncertainty for many people, driven largely by rising inflation and volatility in the markets," said Mitchell. "We've also seen upticks in spending year-over-year not only as a result of inflation, but also as people have resumed a sense of normalcy in their lives following the earlier days of the pandemic."

According to Mitchell, these factors are causing Americans to adjust their expectations. Despite the consensus on retirement costing more, the average amount in a retirement savings account has fallen 11% from last year to an average of $86,869, the survey found.

His advice? Seek the help of a financial advisor because it may help take years off your expected retirement age.

"It's one of those questions on so many people's minds – how long should I expect to work in order to save enough for retirement?" said Mitchell.

"It's really difficult to answer because there are all kinds of considerations to factor in. But too many people grapple with it in a bubble."

For those struggling to build toward the hefty magic number for retirement, the government recently promised an 8.7% cost of living adjustment for Social Security benefits in 2023, Insider's Juliana Kaplan reported.