Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Retirement can feel a bit like packing for a trip without knowing exactly how long you’ll be gone. Save too little and there’s a risk of running short. Save too much and those extra sacrifices along the way may not have been necessary.
The challenge is figuring out where the finish line actually is.
That gets even harder when retirement conversations are dominated by eye-popping numbers. Personal finance personalities regularly debate whether $1 million is enough. Financial guru Suze Orman has gone so far as to describe $2 million as “pennies” today.
Spend enough time on social media or personal finance forums and it can start to seem like everyone is sitting on a seven-figure nest egg.
Don’t Miss:
The data tells a different story.
The latest figures from the Federal Reserve’s Survey of Consumer Finances show most American households are nowhere near millionaire status when it comes to retirement savings. In fact, the typical household has saved far less than many people assume.
The Average Household Looks Richer Than Reality
The average U.S. household has roughly $334,000 saved in retirement accounts.
Sounds encouraging.
The median household has just $87,000.
That distinction matters. The average is pulled higher by households with exceptionally large retirement balances. The median represents the household sitting directly in the middle, meaning half of households have less than $87,000 saved for retirement.
For married couples and dual-income households, balances tend to be higher because there are often two earners contributing over time. Even so, the gap between average and typical retirement savings remains striking.
It’s also a reminder that online discussions can create a distorted picture. While households with $1 million or more in retirement savings certainly exist, they represent a relatively small slice of the population.
Trending: Explore Jeff Bezos-backed Arrived Homes and see how investors are earning passive rental income — now with a limited-time 1% bonus match for new investors.
The Retirement Gap Gets Bigger With Age
The Fed’s data shows retirement balances generally grow throughout a worker’s career.
Households under age 35 have an average retirement balance of about $49,000, while the median sits at roughly $18,900.
Among households ages 35 to 44, the average rises to about $141,500 and the median reaches $45,000.
For households ages 45 to 54, average retirement savings climb to approximately $313,000, while the median balance reaches $115,000.
Households nearing retirement between ages 55 and 64 report average retirement savings of roughly $538,000 and a median of $185,000.
Even among households ages 65 to 74, the median retirement balance is only about $200,000.
That’s a far cry from the multimillion-dollar targets often discussed in retirement planning circles.
Why Some Experts Say You Need Much More
Part of the reason retirement targets seem so high comes down to spending.
According to data from the Bureau of Labor Statistics, the average retiree spends over $60,000 per year, or just under $5,000 per month.
Meanwhile, the average monthly Social Security benefit for retired workers is $2,082, according to Social Security Administration data.
That leaves a gap of nearly $3,000 per month that many retirees must cover through savings, investments, pensions or other income sources.
Healthcare expenses, inflation and longer life expectancies add another layer of complexity. For many couples, there’s a reasonable chance at least one spouse could live into their 90s.
Those realities help explain why some financial experts advocate for retirement savings goals well above $1 million.
See Also: The Wealthy Have Long Used Private Real Estate To Diversify Beyond Stocks. Here’s One Platform Opening That Door.
The Million-Dollar Milestone Isn’t What It Used To Be
For decades, becoming a retirement millionaire was viewed as the ultimate financial milestone.
Today, many advisors argue that the number isn’t nearly as powerful as it once was.
T. Rowe Price suggests households aim to accumulate roughly five to six times annual income by age 50, seven to eight times income by age 60 and around ten times income by retirement.
For a household earning $100,000 annually, that could translate to roughly $1 million by retirement.
Another analysis published by Investopedia estimated that a typical retired couple may need approximately $1.16 million in savings to support retirement spending using the 4% withdrawal rule.
Of course, retirement is highly personal. A couple living in a low-cost area with modest spending needs may require far less. Others living in expensive regions may need significantly more.
How You Can Close The Gap
While retirement headlines often focus on million-dollar portfolios, the bigger lesson may be that progress matters more than comparisons.
Maximizing employer matches, increasing contributions over time and taking advantage of catch-up contributions can all help improve retirement readiness.
For couples looking for more personalized guidance, working with a financial professional can help turn broad retirement benchmarks into a strategy tailored to specific goals, income, and long-term plans. Whether the target is building a $2 million nest egg, reaching $3 million before retirement, or simply creating a more secure financial future, professional guidance can help put a plan in place.
AdvisorMatch can connect investors with vetted financial advisors who align with their financial goals and retirement planning needs. After answering a few questions, investors can be matched with advisors suited to their situation.
The averages make for interesting conversation. The medians reveal something more important.
Most Americans aren’t retiring with millions of dollars.
They’re trying to build enough savings to bridge the gap between what retirement costs and what Social Security provides—and that’s the comparison that matters most.
Read Next: Retirees With $1M+ In Savings Are Rethinking Their Tax Strategy — Here’s Why Some Are Turning To Specialized Advisors
Building Wealth Across More Than Just the Market
Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.
Arrived
Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.
BluSky AI
The rapid adoption of artificial intelligence is creating significant demand for data centers, power, and compute infrastructure. BluSky AI is building modular AI data centers designed to support next-generation AI workloads while aiming to reduce deployment timelines compared to traditional facilities. For investors looking beyond AI software and applications, the company offers exposure to the infrastructure layer that makes artificial intelligence possible.
ARK7
Residential real estate has historically provided investors with income potential and long-term appreciation, but direct ownership can be expensive and time-consuming. ARK7 enables investors to buy fractional shares of rental properties, offering access to potential rental income and real estate exposure without property management responsibilities. By lowering the barrier to entry, the platform gives investors another way to diversify beyond traditional stocks and bonds.
Immersed
Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.
Miso Robotics
Robotics and automation are becoming increasingly important tools for businesses facing labor shortages and rising operating costs. Miso Robotics develops AI-powered kitchen technology that is already being deployed in restaurant environments, with products designed to help operators improve efficiency and streamline operations. As artificial intelligence expands beyond software and into real-world applications, the company is positioning itself at the intersection of robotics, automation and the future of food service.
Vinovest
Fine wine and rare whiskey have historically moved independently of the stock market, making them a compelling alternative asset. Vinovest manages authenticated, insured portfolios of investment-grade wine and whiskey starting at $5,000 — sourcing, storage, and insurance all handled for you.
FarmTogether
Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.
EquityMultiple
For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.
Fundrise
Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.
American Hartford Gold
American Hartford Gold is a precious metals dealer that helps clients buy physical gold and silver coins and bars, either for direct delivery or within self-directed precious metals IRAs. The company’s services include gold and silver IRAs, IRA rollovers, and home delivery of bullion, giving investors a way to use tangible metals to diversify portfolios and seek protection against inflation and market volatility.
Mode Mobile
Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.
Image: Shutterstock
This article Here’s How Much the Average Couple Has Saved for Retirement — How Does Your Nest Egg Compare? originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.