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Retiring with $1 million remains unusual—how many people reach that milestone

Only 3.2% of retirees have $1 million in retirement accounts versus about 2.6% of Americans in general.
Average retirement savings for families aged 65-74 is $609,000, while the median is only $200,000.
The number of “401(k) millionaires” in the U.S. reached a record of nearly 497,000 last year.

Many Americans dream of retiring with a million-dollar nest egg — Americans typically think you need $1.5 million to retire — but the reality is quite different.

Using data from the U.S. Federal Reserve’s Survey of Consumer Finances (updated in 2022 but not released in 2025), only about 2.5% of all Americans actually have $1 million or more saved in their retirement accounts—a statistic that may shock anyone who has seen the financial media and the portrayal of average Americans in recent years.

Among actual retirees, only 3.2% have reached the $1 million threshold.

According to Fed data, just over half of Americans (54.3%) have retirement accounts, and of those, fewer than one in 20 (4.7%) have reached the $1 million mark. If you include all assets, such as real estate and other savings, that number rises to 18% of American households.

The gap between expectations and reality becomes even more apparent when examining specific groups. Average retirement savings for households headed by someone between the ages of 65 and 74 is $200,000, dropping to $130,000 for those 75 and older.

Several factors explain why million dollar retirement accounts are relatively rare. Income plays the most obvious role, with high-income households typically saving an average of $769,000 compared to just $79,500 for middle-income households.

Education also makes a dramatic difference. College graduates have three times the retirement savings of those with a high school diploma. The average value of retirement savings for a US college graduate ($141.7k) is more than three times that of those with only a high school diploma ($44k).

Homeownership also has a significant impact on retirement savings, with homeowners averaging $303,000 in retirement accounts, 2.5 times more than renters.

Regardless of the overall percentage, there has been a significant increase at the top end. Fidelity Investments reports that the number of “401(k) millionaires” will reach a record 497,000 Americans by 2024, with about 399,000 also having at least $1 million in individual retirement accounts — two groups that often overlap.

The key to reaching these amounts? According to a Fidelity analysis of its account holders, starting early and contributing continuously over several years, the average time it takes is about 27 years.

“I’ve seen clients start with six figures of debt and very few assets and eventually reach $500,000 (and more) in net financial assets,” said David Tenerelli, a certified financial planner at Values Added Financial Planning. Investopedia. It’s easy to reach if you’re a high-income professional, he said. “But a high income is not the only way to financial prosperity; living frugally, investing wisely, and optimizing for taxes are all important ingredients for accumulating financial wealth.”

Having a million dollars in your account by your retirement day remains an elusive goal for many Americans, with fewer than one in 30 achieving it. No wonder Americans are worried about their retirement. About three-fifths of us fear that we will outlive our savings.

For those still working, the message is clear: start saving early, contribute consistently, and consider reaching $1 million as part of a very exclusive club.

Read the original article on Investopedia

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