The dream of retiring with a million-dollar nest egg is everywhere—financial gurus, TikTok finance hacks, even your office breakroom chatter. But the reality? It’s a lot rarer than most people think.
According to the latest Federal Reserve data (2022, released in 2025), only 2.5% of Americans have $1 million or more stashed in their retirement accounts. Among current retirees, that number rises only slightly to 3.2%. Despite the popular belief that you need about $1.5 million to retire comfortably, very few actually reach that goal.
So, what do most retirees have? The median retirement savings for households headed by someone aged 65–74 is around $200,000. For those 75 and older, it drops to $130,000—a far cry from millionaire status.
Why the massive gap? It often comes down to income, education, and homeownership. High-income households average $769,000 in savings, while middle-income ones hold just $79,500. College graduates save more than three times what high school grads do. And homeowners? They tend to have retirement accounts worth $303,000, over twice as much as renters.
But it’s not all bleak. A record 497,000 Americans are now 401(k) millionaires, according to Fidelity. Another 399,000 have reached millionaire status through IRAs. The path there? On average, it takes about 27 years of consistent saving and smart investing.
As financial planner David Tenerelli puts it, “High income helps—but it’s not the only way. Frugality, smart investing, and tax-savvy strategies can get you there.”
Fact: Fewer than 1 in 30 Americans retires a millionaire. But with discipline, time, and the right strategy, joining that elite club is still possible—especially if you start today.