For decades, the idea of retiring with a $1 million pension has been considered the finish line, but for most retirees, this 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. Only 1.8% have $2 million, and only 0.8% have $3 million or more saved.
Don’t miss:
Here’s how retirees actually save by age group, according to the same Fed data set:
65 to 74 years old
-
Average retirement savings: $609,230
-
Median retirement savings: $200,000
75 years and above
-
Average retirement savings: $462,410
-
Median retirement savings: $130,000
While these averages may seem comforting, the median reveals the reality that most people face. Half of retirees age 75 and older have less than $130,000 in savings, which isn’t too high when you factor in rising medical costs, inflation and daily 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 highlights why many retirees face difficult financial choices.
This is not just a matter of individual effort. According to a 2024 report from the Center for Retirement Research at Boston College, 39% of working families are expected to be unable to maintain their pre-retirement standard of living. This number reflects households approaching or in retirement age.
Popular: More than $100,000 in investable assets? Get matched with a Fiduciary Advisor for free and learn how to maximize your retirement and save on taxes – No cost, no obligation.
While retirement savings alone may not be enough, many seniors hold wealth in other forms. The Fed’s broader measure of household net worth includes home equity, savings, investments, business interest and debt.
65 to 75 years old
75 years and above
Of course, much of this wealth is tied up in illiquid assets, especially primary residences. Retirees may be millionaires on paper but still feel short of cash when it comes to paying bills or responding to emergencies.
If your savings are below average, or just don’t provide the cushion you’d hoped for, there are still ways to generate income and stretch your resources.
1. Delay social security
For every year you delay paying Social Security after full retirement age (up to age 70), your benefit will increase by about 8%. For many retirees, this is one of the most reliable “investments.”
2. Strategically downsize or leverage home equity
Whether it’s through downsizing, selling a second home, or taking out a home equity line of credit, real estate can be a powerful financial tool. Even a modest home that has appreciated in value over the decades can unlock flexibility in retirement living.
See also: 7 million gamers already trust Gameflip and its digital assets — Now you can own a stake in the platform
3. Consider some real estate investments
Some retirees are beginning to partially invest in rental properties, allowing them to purchase small shares of income-producing real estate without the responsibilities of a landlord. These platforms offer passive income potential with less risk than owning a complete property.
4. Explore part-time or flexible work
Many retirees are returning to work—not out of necessity, but to stay active and supplement their income. Remote consulting, seasonal work, and even turning a hobby into a micro-business can all provide low-stress income.
Most retirees won’t have $1 million in retirement savings, and that’s OK.
It’s more about finding balance: Know your net worth, cut unnecessary expenses, build flexible income streams, and use the assets you have (whether it’s your home equity or the time you have on your hands) to support the lifestyle you want.
Retirement is not about reaching an arbitrary number. It’s about making smart, stable decisions that are appropriate for your stage of life and being willing to change direction when needed.
Read Next: Deloitte’s #1 Fastest-Growing Software Company Lets Users Make Money Just by Scrolling — Accredited investors can still enter at $0.50/share.
Image: image
Next step: Transform your trading with Benzinga Edge’s unique market trading ideas and tools. Click to get unique insights now This allows you to stay ahead of the curve in today’s competitive market.
Get the latest stock analysis from Benzinga:
From this article can you guess what percent of retirees have saved $1 million? This is the average net worth of people 65 and older originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. all rights reserved.
