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Planning for retirement is a long-term financial goal for most Americans, but how many actually reach the coveted seven-figure savings goal? More importantly, how much do you really need?
The answer may surprise you.
With inflation, the rising cost of living, and lower employer contributions to pension plans, saving for retirement is anything but easy right now.
In fact, a Congressional Research Service analysis of the 2022 Federal Reserve data shows that only 4.6% of American households had more than $1 million in their retirement accounts.
According to the Northwestern Mutual 2025 Planning & Progress Study, most Americans feel they’ll need $1.26 million for true financial security in retirement.
Heere are a few things to consider if you want to ensure you catch up on saving for that comfy retirement.
It is worth noting that half of U.S. retirees have less than $145,000 saved, according to a Clever Real Estate retirement survey, about four times less than retirement plan provider Fidelity recommends for retirement.
A shocking 37% of retirees report having no retirement savings at all. This number has been growing due to various factors, including 40% of retirees being forced to take early retirement — for reasons ranging from personal health to being made redundant by an employer.
With so many factors to consider, it’s important to understand exactly what your financial goals are and how to prepare accordingly. It may be worth worth your while to connect with a financial advisor through Advisor.com.
This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.
Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
According to experts like Suze Orman, even if you have a cool $2 million in the bank for retirement, that’s still “chump change”. She warned you’ll need plenty more to retire comfortably if you expect to live into your 90s.
The figures are wide ranging. But that’s to be expected, given everyone’s golden number is different. No matter the amount you’re aiming for, starting sooner rather than later is always better.
If you want to put boost your nest egg over time without having to think about it, you can use Acorns to start saving and investing for retirement with just your spare change.
When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future.
For those looking to enhance their investing strategy as well, Acorns offers different tier memberships, including a Gold tier that allows you to customize your portfolio by adding individual stocks and includes a retirement account with a 3% IRA match.
If you sign up for Acorns today, you can receive a $20 bonus investment.
Read more: Here are 5 simple ways to grow rich with real estate — whether you have $10 or $100,000 to invest
Whether or not you’re behind, a quick win to accelerate your retirement pot is to maximize your IRA contributions. For 2024, the annual contribution limit is $7,000 if you’re under 50, or $8,000 if you’re over 50.
Contributions to a traditional IRA may be tax-deductible, so you can lower the taxable income you report in the year you make contributions. The money then grows tax-deferred, which means you’ll pay taxes on it once you withdraw the funds during your retirement.
This can play to your advantage if you expect to be in a lower tax bracket once you retire. Be careful not to end up hit by a tax torpedo, where your Social Security benefits actually put you in a higher tax bracket than you anticipated.
Contributions to a Roth IRA differ because they’re made with your after-tax dollars, and your earnings grow tax-free. Withdrawals during retirement are also tax-free, so long as you meet the right conditions. This account is more beneficial if you anticipate you’ll be in a higher tax bracket once you retire.
If you’re still pre-retirement and feeling the need for advice on how to choose and manage the best IRA accounts for you, RothIRA.org matches you with an an advisor who can provide personalized advice.
It’s a simple, straightforward process: Simply enter your information, and then you will be automatically matched with 2 or 3 advisors that are pre-screened and licensed with SEC/FINRA who suit your needs. From there, you can schedule a free, no-obligation call to make sure your match is the right fit for you.
Plus, RothIRA.org offers peace of mind: All their advisors are pre-screened and licensed with SEC/FINRA.
But the next question after making your contributions is what to put those funds toward. There are plenty of investments you can make within an IRA, and the right mix will depend on the level of risk and return you’re seeking.
A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.
Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
On the other hand, platforms like Arrived and First National Realty Partners allow you to diversify your IRA with income-producing real estate investments.
Arrived lets you invest in residential rental properties without taking on the work of being a landlord. Backed by world-class investors like Jeff Bezos, the company offers SEC-qualified investments and flexible investment amounts.
The simplified investing process allows accredited and non-accredited investors to tap into this inflation-hedging asset class for a more diversified retirement portfolio.
Here’s how it works: Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, you simply choose the number of shares you want to buy and the Arrived team takes care of all the details.
And residential properties aren’t the only way to invest in real estate through an IRA.
Commercial real estate has long been touted as a wise investment for adding stability to your portfolio, outperforming the S&P 500 over a 25-year period.
First National Realty Partners (FNRP) provides access to high-quality commercial real estate investments, allowing accredited investors to access institutional-quality commercial real estate investments — without the legwork of finding deals yourself.
The team has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart, and Whole Foods, and provides insights into the best properties both on and off-market.
You can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.