Estimates vary, but roughly one-quarter to nearly half of Americans lack retirement savings, with recent data from the Federal Reserve (2022) and Gallup (2025) showing around 28-40% of non-retired adults having no formal retirement accounts, while some surveys suggest close to half of older Americans (55-64) have nothing saved, highlighting significant gaps, especially for lower-income individuals and some minority groups.
The 2022 Survey of Consumer Finances (SCF) 1 found that nearly 40% of Americans have no retirement savings at all, and among those who do, the median savings is only $86,900—far from sufficient to support even a modest retirement. Consider working with a financial advisor as you plan for retirement.
One in five Americans over the age of 50 have no retirement savings, according to a survey by the AARP. And even if you have something tucked away, it may not be enough — though that is something you can change even late in the game.
Key Takeaways
Only 3.2% of retirees have $1 million in retirement accounts vs. about 2.6% of Americans in general. The average retirement savings for households aged 65-74 is $609,000, while the median is only about $200,000.
Elevator Pitch: Most Americans are not on track for a secure retirement, and the numbers show it. Only about 35% of people approaching retirement say they feel “on track.” About half of Americans ages 62–74 cannot count on even $25,000 per person per year – barely enough to cover basic expenses.
In 2022, 46% of households reported retirement savings, with 26% above $100K and 9% over $500K. In 2022, almost half of American households had no savings in retirement accounts, according to the Federal Reserve's Survey of Consumer Finances (SCF).
For a 70-year-old, average retirement savings vary significantly by source, but generally fall between $250,000 and over $600,000 (mean/average), while the median (half have less) is much lower, around $100,000 to $200,000, highlighting a wide gap due to high earners skewing averages. Key figures show the mean for ages 65-74 around $609,000, but the median for that group is closer to $200,000.
Only a small fraction of Americans, around 3% to 4.7%, actually retire with $1 million or more in retirement accounts, according to Federal Reserve data, despite many feeling they need that much for comfort. The median savings for those approaching retirement (ages 65-74) is much lower, around $200,000-$609,000, making the million-dollar milestone rare, though "401(k) millionaires" are growing in number.
More Baby Boomers are delaying retirement—not because they want to, but because they feel they have to. With longer life expectancies, rising costs, and shifting financial responsibilities, many are unsure if they have enough saved to step away from work.
A 2024 study found that the average retirement age is 62, though most retirees and pre-retirees believe the ideal retirement age is 63. The average retirement age has increased from age 57 in 1991 . Fewer adults in their 60s are retired.
Not saving enough for retirement early enough was the biggest financial regret cited among survey respondents, particularly among members of older generations, with 22% of overall respondents ranking it as their top regret.
The $1,000 a month rule is a retirement guideline suggesting you need about $240,000 saved for every $1,000 per month in desired income, based on a 5% annual withdrawal rate (5% of $240k is $12k/year, or $1k/month). It's a simple way to set savings goals, but it doesn't account for inflation, taxes, or other income like Social Security, so it's best used as a starting point, not a complete plan.
A common starting point is to estimate that you'll need about 70% to 80% of your pre-retirement income to maintain your standard of living in retirement. For example, if you earn $150,000 annually while working, you might need between $105,000 to $120,000 as a starting point in retirement.
Only a small fraction of Americans, around 1.8% of U.S. households, have $2 million or more saved in retirement accounts, according to analyses of Federal Reserve data by organizations like the Employee Benefit Research Institute (EBRI). This puts them in a very elite group, as most people fall far short of this milestone, with far fewer reaching $3 million (around 0.8%).
That's good news for homeowners, but challenging for buyers. Nearly one in 10 (8.5%) U.S. homes are worth $1 million or more, the highest share of all time.
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.
The top ten financial mistakes most people make after retirement are:
About 40 percent of all U.S. households where the head of the household is between 35 and 64 are expected to run short of money in retirement, according to a 2019 report by the Employee Benefit Research Institute.
Key Points. The 4% rule is a popular strategy for managing retirement savings. Suze Orman thinks 4% may be too aggressive a withdrawal rate today. She recommends a more conservative approach coupled with other means of attaining financial security in retirement.
Moynes refers to as the 3 D's: depression, divorce, and cognitive decline. This period can be incredibly challenging as retirees struggle to find a new sense of purpose and direction without the familiar structure of their careers.