The idea of retiring with a $1 million nest egg has been sold as the bottom line for decades — but for most retirees, that number is out of reach.
Data from the Federal Reserve’s Survey of Consumer Finances show that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Only 1.8% have $2 million, and only 0.8% have $3 million or more saved.
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According to the same Federal Reserve dataset, here’s how savings actually look to retirees when broken down by age group:
Age 65 to 74
Average retirement savings: $609,230
Average retirement savings: $200,000
Age 75 and over
Average retirement savings: $462,410
Average retirement savings: $130,000
While those averages may seem comforting, the median reveals the reality most people face. Half of retirees age 75 and older have less than $130,000 saved—a figure that’s not far off when you factor in rising medical costs, inflation and everyday living expenses.
In fact, according to Fidelity, older Americans should aim to save about 10 times their pre-retirement income by age 67 to maintain their standard of living. The gap between that goal and actual savings underscores why many retirees are left navigating difficult financial options.
And it’s not just about individual effort. According to a 2024 report by Boston College’s Center for Retirement Research, an estimated 39% of working households will have less to maintain their pre-retirement living standards. That number reflects households at or near retirement age.
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While retirement savings may be limited, many older adults hold wealth in other forms. The Federal Reserve’s broad measure of household net worth includes home equity, savings, investments, business interests and loans.
Age 65 to 75
Age 75 and over
Of course, much of this wealth is tied up in liquid assets—especially primary residences. Retirees may be paper millionaires but feel cash-strapped when it comes to paying bills or covering emergencies.
If your savings are below average—or don’t provide the cushion you’d hoped for—there are still ways to generate income and stretch your resources.
1. Social Security Delays
For every year you delay taking Social Security past your full retirement age, until age 70, your benefit increases by about 8%. For many retirees, this is one of the most reliable “investments” available.
2. Strategically downsize or tap home equity
Whether downsizing, selling a second property, or accessing a home equity line of credit, real estate can be a powerful financial tool. Even modest homes that have appreciated over decades can unlock flexibility in retirement.
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3. Consider fractional real estate investing
Some retirees are turning to partial investments in rental properties, allowing them to buy small shares in income-generating real estate without the responsibilities of homeownership. These platforms offer passive income potential with less risk than full asset ownership.
4. Explore part-time or flexible work
Many retirees return to work—not out of necessity, but to stay active and supplement their income. Remote consulting, seasonal jobs, and even turning hobbies into micro-businesses can provide low-stress income.
Most retirees won’t reach $1 million in retirement savings—and that’s okay.
What’s more important is finding balance: understanding your net worth, cutting unnecessary expenses, building flexible income streams, and using the assets you have—whether equity in your home or time on your hands—to support the lifestyle you want.
Retirement is not about hitting an arbitrary number. It’s about making smart, stable decisions that work for your stage of life—and being willing to change course when necessary.
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In this article, can you guess what percentage of retirees have $1 million in savings? Here is the average net worth of people 65 and older originally appeared on Benzinga.com
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