New Data Shows The Simple Habit That Can Double Americans’ Retirement Savings

By Austin Smith

Dec 11, 2025 | Updated 7:12 PM ET

New Data Shows The Simple Habit That Can Double Americans’ Retirement Savings

Most Americans already feel behind on retirement, but new data from Northwestern Mutual’s Planning & Progress Study shows the problem is even worse than many realize. According to their research, the average American believes they will need more than $1.4 million dollars to retire comfortably, yet they have saved only a tiny fraction of that amount.

This massive gap continues to widen every year. Social Security replaces only about 40 percent of pre-retirement income, and rising inflation is eating into buying power faster than many people expect. It is no wonder so many Americans feel unprepared.

But there is good news. There is one habit that consistently separates people who actually build the retirement they want from those who fall behind.

And it is surprisingly simple to get started right now.

The Habit Proven to Double Retirement Savings

The data could not be clearer. Americans who work with a financial advisor have more than double the retirement savings of those who do not. As shown in the 2024 Northwestern Mutual Planning and Progress Study, Americans without advisors averaged $62,000 dollars saved, while those with advisors averaged $132,000 dollars.

This is not a small difference. It is a dramatic gap that compounds over time.

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If two people stopped contributing today, the one who worked with an advisor would end up with hundreds of thousands more at retirement simply because they started stronger, planned better and avoided mistakes that cost the average investor years of growth.

A financial advisor is not just a guide. They are a force multiplier for your long-term wealth.

Why Advisors Make Such a Big Difference

Working with a financial advisor does far more than help you pick investments. Advisors create a complete, durable financial plan tailored to your goals, your risk tolerance and your timeline.

According to the same data, people with advisors are dramatically more likely to:

Build a long-term plan that accounts for economic ups and downs
Maintain a real emergency fund
Feel financially secure
Understand exactly how much they can afford to spend versus save
Have a plan to address the risk of outliving their money
Develop a strategy for paying down debt
Account for inflation in their financial planning
Prepare for healthcare expenses in retirement
Have a plan to leave behind an inheritance or charitable gift

In short, advisors help you build the habits, structure and clarity that allow you to save and invest more effectively.

A strong financial plan is not a luxury. It is the foundation of real financial independence.

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If You Want to Strengthen Your Financial Future, This Is Your Moment

The difference between struggling in retirement and thriving in it often comes down to the decisions you make today. Fear, procrastination and confusion cost Americans more money than bad investments ever will.

If you are ready to eliminate uncertainty, stop guessing, and finally feel confident about your long-term future, connecting with a trusted financial advisor is the smartest step you can take.

With SmartAsset, you can get matched with vetted fiduciary advisors who are legally required to act in your best interest. They will help you build a real plan, optimize your investments and keep you accountable over time.

This is how real retirement confidence begins.

Get Matched With a Trusted Financial Advisor Today

Putting this off means losing valuable time and potential growth. Taking action now could be the turning point that shapes your financial future for the better.

Start your free SmartAsset advisor match today and take control of your financial life.