Every year, millions of Americans receive an inheritance—from their parents, a spouse or other loved ones. An inheritance can include many different assets, from investment accounts to real estate to individual retirement accounts (IRAs). 

Over the course of a career, it’s not uncommon for a person to accrue a variety of retirement accounts: 401(k)s from one or multiple employers, IRA(s) with different companies, etc. But having multiple accounts with different companies can get complicated, making it difficult for you to keep an eye on fees, diversification and your overall financial picture.  

If you’ve ever looked closely at your paycheck (or your self-employment taxes, if you’re self-employed), you’ve probably noticed a portion of your earnings is taken out every month for Social Security. Those contributions are tied to a benefit you could be eligible for someday, one that many Americans take advantage of in retirement. According to the Social Security Administration, 66 million people received monthly Social Security benefits in 2022—and 51 million of those were retirees and their families.  

High inflation levels have eroded many Americans’ confidence in their retirement preparedness. According to the 2023 Northwestern Mutual Planning and Progress Study, U.S. adults aged 18 or older expect they will need $1.27 million to retire comfortably, a 20 percent rise since 2021.  Luckily, Americans’ average retirement savings increased a bit to $89,300.

As you go through life, you’re likely to have many financial goals: saving for retirement, paying for your child’s education or wedding, or having enough for emergencies. And for each of these goals, you probably rely on a specific financial product to help reach it.  

Once the kids move out and the house is paid off, it may seem like you don’t really have a need for life insurance anymore—after all, some of the main things you would want a death benefit for are now behind you (phew!). But as you approach retirement, life insurance—specifically permanent life insurance—can still fulfill many different roles in your financial plan.

Americans think they’ll need $1.27 million dollars for retirement. They report having less than $90,000 on average in retirement savings. Those are the results of the 2023 Northwestern Mutual Planning & Progress study.