The idea of retiring with a $1 million nest egg has been sold as the finish line for decades—but for most retirees, that number is out of reach.
Data from the Federal Reserve’s Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.
Don’t Miss:
Here’s how savings actually look for retirees when split by age group, according to the same Federal Reserve dataset:
Age 65 to 74
Average retirement savings: $609,230
Median retirement savings: $200,000
Age 75 and over
Average retirement savings: $462,410
Median retirement savings: $130,000
While those averages may seem comforting, the median reveals the reality most people face. Half of retirees 75 and over have less than $130,000 saved—a figure that doesn’t stretch far when you factor in rising medical costs, inflation, and daily living expenses.
In fact, according to Fidelity, older Americans should aim to have around 10 times their pre-retirement income saved by age 67 to maintain their standard of living. The gap between that target and actual savings underscores why many retirees are left navigating tough financial choices.
And it’s not just about individual effort. According to a 2024 report from the Center for Retirement Research at Boston College, an estimated 39% of working households are projected to fall short of maintaining their pre-retirement standard of living. That number reflects households nearing or at retirement age.
Trending: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.
While retirement savings alone might fall short, many older adults hold wealth in other forms. The Federal Reserve’s broader measure of household net worth includes home equity, savings, investments, business interests, and debts.
Age 65 to 75
Age 75 and over
Of course, much of this wealth is tied up in illiquid assets—especially primary residences. A retiree might be a paper millionaire but still feel cash-strapped when it comes to paying bills or covering emergencies.
Story Continues