Retiring With $1 Million Is Rare—Here’s How Many People Actually Do It

• Only 3.2% of retirees have $1 million in retirement accounts, compared with about 2.6% of Americans.

• The average retirement savings for households aged 65-74 is $609,000, while the median is only about $200,000.

• Last year, the number of 401(k) millionaires in the United States reached a record high of approximately 497,000.

Many Americans dream of retiring with $1 million in savings—Americans generally believe that retirement requires about $1.5 million—but the reality is very different.

According to data from the Federal Reserve’s Survey of Consumer Finances (updated to 2022 but released in 2025), only about 2.5% of Americans actually have $1 million or more in retirement accounts — a number that may shock those accustomed to the financial media and its depictions of ordinary Americans who have accumulated huge portfolio gains in recent years.

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

According to the Federal Reserve, more than half of Americans (54.3%) have a retirement account, with less than one-twentieth (4.7%) reaching the $1 million mark. If all assets, including real estate and other savings, are included, that number rises to 18% of U.S. households.

The gap between expectations and reality becomes clearer when studying specific groups. Median retirement savings for households aged 65 to 74 is $200,000, while that drops to $130,000 for households aged 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 with just $79,500 for middle-income households.

Education can also have a huge impact. College graduates have more than three times the retirement savings of those with a high school diploma. The median retirement savings of U.S. college graduates ($141,700) is more than three times that of those with only a high school diploma ($44,000).

Homeownership also significantly impacts retirement savings, with homeowners holding an average of $303,000 in retirement accounts, more than 2.5 times that of renters.

Although the overall percentages are different, the growth at the high end of the market is significant. Fidelity Investments reports that as of 2024, there will be a record number of “401(k) millionaires” in the U.S., about 497,000, with nearly 399,000 of them also having at least $1 million in individual retirement accounts — two categories that often overlap.

What’s the key to reaching these amounts? According to Fidelity’s analysis of its account holders, it takes about 27 years on average to start early and continue giving consistently over many years.

“I’ve seen clients start with six figures of debt and very few assets and end up with a net financial wealth of $500,000 (or more),” David Tenerelli, a certified financial planner at Value Added Financial Planning, tells us. Investment Encyclopedia. He points out that it’s easier to achieve this if you’re a high-earning professional. “But a high income isn’t the only way to achieve financial prosperity; living frugally, investing wisely and optimizing taxes are all important factors for anyone to build financial wealth.”

For the vast majority of Americans, having millions of dollars in their accounts by retirement remains an elusive goal, with less than one-third achieving it. No wonder Americans care about their retirement. About three-fifths of us worry about running out of savings.

For those who are still working, the message is clear: start saving early, keep donating, and consider becoming part of a very exclusive club up to $1 million.

Read the original article on Investopedia