Here are 7 clear signs you’re financially outpacing most US retirees, plus how to catch up if you’ve fallen behind

Core Insights - The "magic number" for retirement savings is perceived to be $1.26 million by most Americans, according to a 2025 NorthWestern Mutual survey [1] Group 1: Retirement Income - Having sufficient guaranteed retirement income is crucial to cover monthly expenses such as food, shelter, and utilities. A 2022 survey by the Employee Benefit Research Institute found that about half of adults over 65 spent less than $2,000 monthly, while one-third spent between $2,000 and $3,999 [3] - If guaranteed retirement income is $4,000 a month, it indicates a stronger financial position compared to most retirees [4] Group 2: Debt Management - High-interest consumer debt is prevalent among older Americans, with 85% of households led by someone aged 65 and older carrying credit card debt. Additionally, around 9% have medical debt, and 36.8% are paying off auto loans [5] - Being debt-free, particularly from non-mortgage debt, places retirees in a better financial situation than many of their peers [6] Group 3: Income Diversification - Relying solely on Social Security for retirement income is a common mistake, with over 27% of retirees living exclusively on Social Security as of 2024 [7]