Approximately 7.2% to 9% of American households have saved $500,000 or more in their retirement accounts, according to data from sources like the Federal Reserve's 2022 Survey of Consumer Finances.
Roughly 7% to 9% of American households have $500,000 or more in retirement savings, though figures vary slightly by source, with data from late 2025 suggesting around 7.2% and older 2022 data indicating about 9%, showing it's a significant milestone achieved by less than one in ten families, despite higher averages driven by wealthy individuals.
Very few people retire with $5 million; it's a top-tier financial achievement, with data from the Employee Benefit Research Institute (EBRI) showing that less than 0.1% of U.S. households have $5 million or more in retirement savings, making it an extremely rare milestone, even compared to the roughly 3% who reach $1 million.
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.
Yes, you can live off the interest/returns from $500,000, but it depends heavily on your lifestyle and expenses, with the common 4% rule suggesting about $20,000 annually, which may require a frugal lifestyle, relocation, or significant Social Security income to supplement. With smart investing (e.g., balanced stock/bond mix) and minimal spending, it's feasible for many, but living in a high-cost area or with high expenses would make it difficult.
A good retirement nest egg aims to replace 80% of your pre-retirement income, often needing 10-12 times your final salary saved by age 67, but the exact amount varies widely based on lifestyle, desired retirement age, location, and expenses like healthcare. Key benchmarks include saving 1x salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67, with a 15% savings rate of your income being a strong general goal.
In fact, reliable data suggests that households with $5 million or more in net worth represent a small fraction of the population. According to DQYDJ, in 2023, approximately 4.8 million American households had a net worth above $5 million, representing roughly 3.7% of all U.S. households.
Making $500,000 a year is quite rare, placing you in roughly the top 1% (or slightly below, depending on data) of U.S. earners, with estimates suggesting only about 0.8% to 1% of individuals or households achieve this income, though government data can obscure this; it's a significant financial milestone, yet surprisingly, many high earners still feel financially stretched due to lifestyle inflation and high costs.
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.
They separated households that met the accredited investor definition into those with $1 million or more in qualified savings, which they dubbed “401(k) millionaires,” and all other accredited investor households.
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.
The top ten financial mistakes most people make after retirement are:
Only a small fraction of retirees, around 3.2%, have $1 million or more in retirement savings, according to recent Federal Reserve data, making it a rare achievement despite many people believing it's necessary for comfort. The majority have significantly less; the median savings for households aged 65-74 is much lower, around $200,000, highlighting a large gap between the goal and reality, though high-income households fare better.
Americans Believe You Need $2.3 Million
According to Charles Schwab's recent Modern Wealth Survey, Americans felt that you need a net worth of $2.3 million to be considered wealthy, down from the $2.5 million figure last year.
According to the 2020 Census, the average retirement income for couples is less than $101,500. What is a good retirement income for a couple? A good retirement income is subjective. The median retirement income is currently $72,800 annually.
One common approach is to take required minimum distributions (RMDs) starting at age 73, which helps you avoid penalties and ensures a steady income stream. Another option is to roll over your 401(k) into an IRA, offering more flexibility and potentially better investment choices.
4 common 401(k) mistakes to avoid