Core Insights - The "magic number" for retirement is identified as $1.26 million for most Americans, according to Northwestern Mutual [1] - Retirement should focus on income replacement rather than achieving a specific savings target, as highlighted in a JPMorgan Asset Management report [2][3] Income Replacement Strategy - Lower and middle-income households require less retirement savings to replace their current income [4] - Households earning $90,000 or less can rely on Social Security and employer-backed retirement plans to replace a significant portion of their income, with a suggested savings rate of 5% until retirement [5] - A family earning $80,000 could replace nearly 81% of their income in retirement, while a family earning $40,000 could see a 95% replacement rate [6] Savings Targets Based on Income - For households earning $125,000 and above, a seven-figure savings target is justified [7] - Current savings benchmarks vary by income; for example, a 40-year-old with a $50,000 income should have $105,000 saved, while one with a $90,000 income should have $220,000 saved [7]