It won’t come as any surprise to learn that millions of Americans are trying to put money away for retirement, with varying degrees of success. Unfortunately, the number of people behind is shockingly high, putting millions at risk of not enjoying their retirement years.
According to the Employee Benefit Research Institute, more than 50% of Americans have less than $10,000 saved for retirement. This is a big concern, especially considering how shocking it is that a much smaller number have more than $500,000 tucked away for retirement.
The Data Breakdown
When you look at the data breakdown provided by the research, there is no question that it will shock people of all income and savings levels. According to the study, it found the following amounts are currently in American’s retirement accounts:
- $0 to $9,999: 58.4%
- $10,000 to $99,999: 20.5%
- $100,000 to $499,999: 13.9%
- $500,000 to $999,999: 4%
- $1 million to $4.99 million: 3.1%
- $5 million or more: 0.1%
Nearly 500,000 Americans Are 401(k) Millionaires
Despite the overall percentages, there’s been remarkable growth at the top end. Fidelity Investments reports that the number of “401(k) millionaires” reached a record of about 497,000 Americans as of 2024, with nearly 399,000 also having at least $1 million in individual retirement accounts—two groups that often overlap.
The key to reaching these amounts? Starting early and contributing consistently over many years, with the average time it takes being about 27 years, according to a Fidelity analysis of its accountholders.
What costs $100,000/year today could require $150,000+ in 20 years
https://bravecalculator.com/inflation-adjusted-retirement-calculator/
Many calculators suggest $1.5M–$2.5M is needed for a comfortable retirement in 2025 dollars, depending on lifestyle, healthcare costs, and longevity
https://www.gobankingrates.com/retirement/planning/how-much-do-i-need-to-retire-in-2025/