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These days, many people think they need over a million dollars to be able to retire comfortably.<\/p>\n
More specifically, most Americans think the magic number is $1.26 million, according to a 2025 Northwestern Mutual survey (1).<\/p>\n<\/p>\n
However, only a small minority of people will have that much when they clock out of work. In fact, according to a Congressional Research Service analysis of 2022 Federal Reserve data, only 4.6% of American households had more than $1 million in their retirement accounts (2).<\/p>\n
The same data revealed that the median retirement nest egg was only $88,000 across all American households.<\/p>\n
Older Americans were more likely to be in the seven-figure club. According to an American Society of Pension Professionals and Actuaries (ASPPA) analysis of the same data, 9.2% of those aged 55 to 64 had $1 million or more in their retirement accounts (3).<\/p>\n
Still, that\u2019s more than 90% of Americans who aren\u2019t anywhere close to the magic number.<\/p>\n
There are ways to improve your odds of getting to a $1-million-plus nest egg, but it will take work. Here are the top three big money moves you can make to secure your spot.<\/p>\n
As of mid-2025, Americans\u2019 average personal savings rate was just 4.6%, according to the U.S. Bureau of Economic Analysis. In other words, for every $20 in disposable income, most people were saving less than $1 (4).<\/p>\n
If you can save more than this, you could put yourself ahead of most of your peers. Aim for a monthly savings rate of at least 10% to improve your odds of a million-dollar retirement.<\/p>\n
To do this, maximize contributions to tax-efficient savings plans like the 401(k), Roth IRA and others, and see if your employer matches any contributions.<\/p>\n
Consider switching jobs to an employer who will either pay you more or match your contributions. You could also sign up for one of several online platforms that enable you to automate your savings so that you\u2019re always on track.<\/p>\n
Once you\u2019ve set up a steady saving habit, the next step is making sure that money actually works for you. You can boost your returns simply by picking a smarter place to stash your cash.<\/p>\n
Rather than keeping your loose change in traditional low-interest checking and savings accounts, consider opening a high-yield savings account to earn higher returns on unused cash.<\/p>\n
You can earn up to 4.50% annual percentage yield (APY) on your savings with SoFi\u2019s high-yield checking and savings account<\/a>. That\u2019s nearly 10 times higher than the 0.40% average interest rates offered by traditional big-name banks.<\/p>\n Even better, SoFi won\u2019t charge you any fees and has no monthly maintenance costs or minimum balance requirements.<\/p>\n What\u2019s more, you can get up to $300<\/a> when you sign up with SoFi and set up a direct deposit.<\/p>\n Passively investing in low-cost index funds has become the norm. In fact, for the past nine years, passive index funds have attracted more capital than active funds, according to Morningstar (5).<\/p>\n It could be because passively investing in low-cost index funds has been relatively easy and lucrative in recent years. Vanguard\u2019s S&P 500 ETF has delivered an annualized return of 13.62% since 2015 (6).<\/p>\n This is slightly above the historical average since 1957, which is just over 10% (7).<\/p>\n While past performance isn\u2019t an indicator of future returns, if you assume 10% annual returns and commit to a 10% annual savings rate on a salary of $70,000, you could get to $1 million within 29 years.<\/p>\n placement()<\/p>\n Even if you\u2019re 40 years old, deploying this plan today could get you into the seven figure club by the time you retire. If you can start earlier, earn more than $70,000, or save a bigger proportion of your monthly paycheck, you could even get there faster.<\/p>\n There\u2019s no one-size-fits-all path to building wealth. Depending on your age, income and how far along you are in your retirement savings journey, you may need to tweak your investment strategy to stay on track toward your goal.<\/p>\n That\u2019s where a financial advisor can help you. According to research from Vanguard, people who work with financial advisors can see 3% higher net returns compared to those who don\u2019t.<\/p>\n With Vanguard<\/a>, you can connect with a personal advisor who can help assess how you\u2019re doing so far and make sure you’ve got the right portfolio to meet your goals on time.<\/p>\n Vanguard\u2019s hybrid advisory system combines advice from professional advisers with automated portfolio management to make sure your investments are working to achieve your financial goals.<\/p>\n All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard\u2019s advisers will help you set a tailored plan and stick to it<\/a>.<\/p>\n Once you\u2019re set, you can sit back as Vanguard\u2019s advisors manage your portfolio. Because they\u2019re fiduciaries, they don\u2019t earn commissions, so you can trust that the advice you\u2019re getting is unbiased.<\/p>\n While a simple saving and investing plan could get you into the million-dollar retirees club, it won\u2019t guarantee peace of mind unless you can also reduce your debt burden. You can\u2019t really enjoy your golden years with a hefty mortgage, expensive credit card debt or monthly auto payments to worry about.<\/p>\n Unfortunately, nearly half of all American seniors have credit card debt and 9% of them have some form of medical debt, according to the AARP. It\u2019s becoming increasingly difficult to achieve a debt-free retirement (8).<\/p>\n High-interest credit card debt \u2014 with average rates hovering above 20% \u2014 can quickly snowball out of control (9).<\/p>\n If you\u2019re juggling multiple balances or struggling to keep up with payments, consolidating your debt with a personal loan could make things easier. This way, you\u2019ll have just one monthly payment, ideally at a lower interest rate, making it easier for you to keep track of and pay off.<\/p>\n Credible<\/a> is an online marketplace that allows you to compare personal loan rates and features from multiple lenders near you \u2014 all in one place.<\/p>\n The process is completely free<\/a>, and won\u2019t impact your credit score. Simply answer a few simple questions, then Credible will automatically display actual rates offered by top lenders like SoFi, Discover, Upstart, and more. You can then make a selection based on your requirements and preferences.<\/p>\n With rates starting at 6.49% APR<\/a> \u2014 you could potentially save a ton in interest.<\/p>\n If you\u2019re a homeowner, you can also leverage the equity you\u2019ve built up over the years to repay outstanding debt using a Home Equity Line of Credit (HELOC).<\/p>\n With home values higher than ever, you can make your home work harder for you<\/a> by making the most of your equity. The average homeowner sits on roughly $311,000 in equity<\/a> as of the third quarter of 2024, according to CoreLogic.<\/p>\n Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg.<\/p>\n Rates on HELOCs and home equity loans<\/a> are typically lower than interest on credit cards and personal loans, making them an appealing option for homeowners with substantial equity.<\/p>\n Unlock great low rates in minutes by shopping around. You can compare real loan rates<\/a> offered by different lenders side-by-side through LendingTree.<\/p>\n Just answer a few simple questions, and LendingTree will match you with up to five lenders<\/a> with low rates today. Terms and Conditions apply. NMLS# 1136.<\/p>\n Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B<\/a> \u2014 start using them today to get rich (and then stay rich)<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Northwestern Mutual (1<\/a>); Congressional Research Service (2<\/a>); (3<\/a>); U.S. Bureau of Economic Analysis (4<\/a>); Morningstar (5<\/a>); Nasdaq (6<\/a>); Questrade (7<\/a>); AARP (8<\/a>); LendingTree (9<\/a>)<\/p>\n This article originally appeared on Moneywise.com<\/a> under the title: Here\u2019s how many Americans actually have $1M by retirement \u2014 and the 3 big moves they made. Make sure you’re on track<\/a><\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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