A relatively small percentage of Americans have $500,000 or more in retirement savings, with estimates from late 2025 and early 2026 suggesting around 7% to 9% of households have reached or surpassed this milestone, though figures vary slightly by source and age group, with older cohorts (55-64) showing higher percentages than younger ones. While many households lack significant savings, reaching $500k is a significant achievement, with around 9% of households holding this much or more as of 2022 data, according to the Federal Reserve's Survey of Consumer Finances.
Reaching $500,000 in retirement savings is not just a financial milestone—it's also a strategic one. At this level, you have the flexibility to plan for tax-efficient withdrawal strategies, which can significantly impact how long your money lasts and how much you pay in taxes during retirement.
Back then, only Connecticut and Washington, D.C., had a 5% top-earning threshold of $500,000. Five years later, that's up to 11 U.S. states and D.C.: Washington, California, Massachusetts, Hawaii, Virginia, Colorado, New York, New Jersey, Illinois, Maryland and Connecticut.
To land in the top 2% of U.S. households by net worth, most estimates place the threshold at around $5.5 million. This figure is based on 2022 data from the Federal Reserve's Survey of Consumer Finances, as interpreted and modeled by tools like DQYDJ's Net Worth Percentile Calculator.
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. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.
To be considered wealthy in the U.S., Americans say you need a net worth of $2.3 million in 2025 — but that number can be even higher depending on where you live.
Still commonly used is multimillionaire, which refers to individuals with net assets of 2 million or more of a currency. There are approximately 584,000 US$ multimillionaires who have net assets of $10M+ worldwide in 2017.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Retiring on $500K is possible if an annual withdrawal of $29,400–$34,200 aligns with your lifestyle needs over 25 years. If you retire at 60 with $500k and withdraw $31,200 annually, your savings will last for 30 years. You can retire at 50 with $500k, but it will take a lot of planning and some savvy decision-making.
9 Signs of Wealth to Look Out For
Of the 54.3% of U.S. households that have any money in retirement accounts, only about 9.3% have $500,000 or more in retirement savings.
A $500,000 retirement fund at 50 comes with its challenges. Your savings need to last about 27 years, so you'll need a solid plan. You can't get Social Security until 62 or Medicare until 65, which means you need other ways to make money during those first years.
If invested with an average annual return of 7%, it would take around 15 years to turn 500k into $1 million.
Here's why real estate has historically outperformed the stock market over time and rental demand is still strong in many areas and while this may surprise you or maybe not but about 90% of millionaires say that real estate has played a key role into building their wealth.
The 7 Levels of Financial Freedom: Your Path to Abundant Wealth Elementor
Who Actually Has That Kind of Money? According to the Employee Benefit Research Institute, just 1.8% of U.S. households have $2 million or more saved in retirement accounts. That's based on the 2022 Survey of Consumer Finances, conducted by the Federal Reserve.
Rich people often focus on earning a lot of money and spending it on luxury cars, expensive trips and big houses. They can afford a high-end lifestyle, but they're also often tied to keeping that high income coming in to support it. If their income were to stop, their lifestyle might take a hit.
After three years of research, personal experimentation, and thousands of interviews across the globe, Sahil Bloom has created a groundbreaking blueprint to build your life around five types of wealth: Time Wealth, Social Wealth, Mental Wealth, Physical Wealth, and Financial Wealth.
10 common money habits this CFP says his wealthiest self-made millionaire clients have that normal people could copy
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
Yes, you can.
Here's why $700,000 can provide a strong foundation: Ongoing investment returns – At 6% p.a. (before inflation), $700,000 balance generates around $42,000 in earnings each year. Capital drawdowns – Investment income alone may not cover all your expenses.
We estimate that to retire comfortably at age 60, a single person might need a super balance of around $515,000 (for an income in retirement of about $52,000 per year*), and a couple retiring at age 60 might need a combined super balance of around $660,000 (for a combined income in retirement of about $72,000 per year ...