Many Individuals dream of retiring with a million-dollar nest egg —Individuals usually assume you want about $1.5 million to retire—however the actuality is starkly totally different. Utilizing figures from the U.S. Federal Reserve’s Survey of Client Funds (up to date to 2022 however launched in 2025), solely about 2.5% of all Individuals even have $1 million or extra saved of their retirement accounts—a determine which may shock anybody used to seeing monetary media and their depictions of common Individuals amassing huge portfolio features in recent times.

Amongst precise retirees, solely 3.2% have reached the $1 million threshold.

The Million-Greenback Actuality Verify

In line with Fed information, simply over half of Individuals (54.3%) have retirement accounts, and of these, lower than one in 20 (4.7%) have reached the $1 million mark. That determine rises to 18% of U.S. households if you happen to embrace all property, similar to actual property and different financial savings.

What Most Retirees Really Have

The hole between expectation and actuality turns into even clearer when inspecting particular teams. The median retirement savings for households led by somebody between 65 and 74 years outdated is $200,000, dropping to $130,000 for these 75 and older.

Why So Few Attain $1 Million

A number of components clarify why million-dollar retirement accounts are comparatively uncommon. Revenue performs the obvious position, with high-income households sometimes saving a median of $769,000 in contrast with simply $79,500 for middle-income households.

Schooling makes a dramatic distinction, too. Faculty graduates have greater than thrice the retirement financial savings of these with a highschool diploma. The median worth of retirement financial savings for a U.S. school graduate ($141.7k) is greater than thrice that of these with solely a highschool diploma ($44k).

Homeownership additionally considerably impacts retirement financial savings, with householders averaging $303,000 in retirement accounts, greater than 2.5 occasions as a lot as renters.

Almost 500K Individuals Are 401(okay) Millionaires

Regardless of the general percentages, there’s been outstanding progress on the high finish. Constancy Investments studies that the variety of «401(k) millionaires» reached a file of about 497,000 Individuals as of 2024, with practically 399,000 additionally having at the very least $1 million in particular person retirement accounts—two teams that usually overlap.

The important thing to reaching these quantities? Beginning early and contributing persistently over a few years, with the common time it takes being about 27 years, based on a Constancy evaluation of its accountholders.

«I’ve seen shoppers begin with six figures of debt and little or no property and finally attain $500,000 (and extra) of internet monetary wealth,» David Tenerelli, a licensed monetary planner at Values Added Monetary Planning, instructed Investopedia. That is simpler to achieve if you happen to’re a high-income skilled, he famous. «However excessive revenue isn’t the one strategy to monetary prosperity; living frugally, investing wisely, and optimizing for taxes are all necessary substances for anybody to build up monetary wealth.» 

The Backside Line

Having a tens of millions {dollars} in your account on the day of your retirement stays an elusive purpose for the overwhelming majority of Individuals, with fewer than one in 30 reaching it. No marvel Individuals are involved about their retirement. About three-fifths of us are afraid we’ll outlive our financial savings.

For these nonetheless working, the message is evident: begin saving early, contribute persistently, and contemplate reaching $1 million as being a part of a really unique membership.