What’s the magic number for retirement, and can a reverse mortgage help?

The magic number for retirement in the U.S., according to Northwestern Mutual, is $1.46 million. While this may seem like a lot, homeowners could take advantage of a reverse mortgage to reach this magic number for retirement.

Reverse mortgages help homeowners of a certain age reach that magic number for retirement by allowing them to access their home’s value without having to sell their properties or make monthly mortgage payments.

If you are looking for help in reaching the magic number for retirement or are just looking for some extra funds later in life, consider starting a reverse mortgage application.

The amount Americans say they need to retire comfortably in 2026 is reported to be $1.46 million.

Of course, the exact number you may need to retire can vary based on personal goals, the lifestyle you want to live during retirement, and when and where you would like to retire.

High net-worth American believe the number they need to retire comfortable is $2.67 million.

​Since 2025, the magic number for retirement has gone up just over $200,000.

Although the magic number for retirement has risen since 2025, it is currently in a similar place to the amount needed in 2024. Before then, the amount Americans expected they would need to retire comfortably had been increasing but not at the same rate as the last year saw. From the start of 2022 to the end of 2023, the expected amount needed for retirement rose by around $20,000.

If a larger retirement amount is needed, the longer you will have to save or the more you will have to put aside each month.

The amount you need to save per month for retirement depends on when you start saving and when you hope to retire.

If your goal is to save $1.46 million and retire by the time you are 60, starting at 25 you will have to save around $3,500 a month. Of course, this isn’t factoring in any investments of those savings or interest they could gain.

For many Americans, this could be a lot of money to save a month, and many may not be able to put aside that much, especially with other bills like utilities and a mortgage.

If you have been paying a mortgage or are a homeowner, your property could help you support your retirement with a reverse mortgage.

Reverse mortgages are, as the title suggests, the opposite of a traditional mortgage. Instead of paying your mortgage each month, a reverse mortgage pays you. Reverse mortgages are typically availability begins at 55, perfect for those looking for help in funding their retirement.

One common type of reverse mortgage is a HECM, or home equity conversion mortgage.

A HECM allows borrowers 62 and older to access their home’s value without having to make payments or sell their property. Unlike other reverse mortgages, HECMs are insured by the Federal Housing Administration. Funds from a HECM can be used as the borrower needs, including to increase the amount they need for retirement.

Some of the requirements needed to qualify for a HECM are:

• Available to borrowers of 62 or older.
• The property needs to be a primary residence.
• Borrowers need to own, at minimum, enough equity to pay off any mortgages with the HECM funds.
• Borrowers will be required to complete a HUD-approved counseling before being approved for their HECM.

If you are looking to get a reverse mortgage, you can start the process by completing an application with a trusted lender.

When you start an application for a reverse mortgage, you will be connected with a professional Loan Officer. This Loan Officer can help you along the application process and answer any questions you may have about your reverse mortgage.

Ready to start the reverse mortgage process? Start a reverse mortgage application today!

Rate is an FHA Approved Lending Institution.

This is not a commitment to lend. Home Equity Conversion Mortgages (HECMs) are eligible for borrowers 62 and older. Borrower must pay property taxes, Homeowner’s insurance, HOA dues (as applicable), and maintain the home and using it as primary residence or the loan will need to be repaid. Otherwise, the loan must be repaid when the borrowers leave the home more than 12 consecutive months, transfer their property's title to another person, the last borrower passes away or sells the home. Prices, guidelines and minimum requirements are subject to change without notice. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. This material has not been reviewed, approved or issued by HUD, FHA or any government agency. Rate is not affiliated with or acting on behalf of or at the direction of HUD, FHA or any other government agency. To find a Reverse Mortgage counselor near you, search the HECM Counselor Roster at https://entp.hud.gov/idapp/html/hecm_agency_look.cfm or call (800) 569-4287.

Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees may be assessed and will be added to the loan balance. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan or use other assets to repay the loan in order to retain the property. You should know that a reverse mortgage is a negative amortization loan which means that your mortgage balance will increase while your home equity decreases if you do not make principle and interest payments on your loan. This may make it more difficult to refinance the loan or to obtain cash upon the sale of the home. However, you will never owe more than the home is worth when the loan is repaid.