{"id":713348,"date":"2026-06-19T10:14:22","date_gmt":"2026-06-19T10:14:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/713348\/"},"modified":"2026-06-19T10:14:22","modified_gmt":"2026-06-19T10:14:22","slug":"retirees-face-a-harder-path-to-1-million","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/713348\/","title":{"rendered":"Retirees face a harder path to $1 million"},"content":{"rendered":"\n

Fewer than 1 in 20 U.S. households hold $1 million in their retirement<\/a> accounts, even though most Americans treat that figure as the threshold for a comfortable retirement.<\/p>\n

Research from federal agencies and private firms<\/a> continues to show that the typical household saves far less than the seven-figure threshold respondents themselves identify as necessary.<\/p>\n

The collective research raises a difficult question about whether seven figures is a realistic savings target for the typical American household.<\/p>\n

Survey data shows the typical retiree falls far short of seven figures <\/p>\n

Only about 4.7%<\/a> of U.S. households held $1 million or more in retirement accounts in 2022, up from 3.2% in 2019, according to Employee Benefit Research Institute analysis of the Federal Reserve<\/a>‘s most recent Survey of Consumer Finances<\/a>.<\/p>\n

A Clever Real Estate<\/a> survey published in January 2026 found that the typical American retiree holds just $288,700 in combined savings and investments.<\/p>\n

The same survey revealed that 29% of retirees have no retirement savings<\/a> at all, while only 23% reported having more than $500,000 set aside.<\/p>\n

Despite those numbers, about 40% of retirees in the Clever Real Estate survey said they believe it takes at least $1 million to retire comfortably, and 92% said most people underestimate the cost of a comfortable retirement.<\/p>\n

Allianz Life finds that half of U.S. adults have cut retirement contributions <\/p>\n

The savings shortfall is not limited to people who have already retired, and new research suggests the problem could grow worse for future retirees.<\/p>\n

51% of U.S. adults said they had reduced or stopped contributing to their retirement savings in the prior six months, Allianz Life reported<\/a>.<\/p>\n

The insurer’s fourth-quarter 2025 Quarterly Market Perceptions Study, which surveyed 1,005 respondents in the contiguous U.S., found that 66% said they had been unable to contribute as much to their savings in the prior six months due to the current economic environment.<\/p>\n

While it may seem to hurt less in the short-term, cutting back on retirement savings now may hold back your ability to achieve your retirement goals in the long run<\/p>\n

Younger workers felt the most impact, with 62% of Gen Z and millennial respondents reporting cutbacks compared with 46% of Gen X respondents or 36% of boomers.<\/p>\n

\u201cAchieving your dream retirement generally takes continual incremental progress over your working years,\u201d Kelly LaVigne<\/a>, vice president of consumer insights at Allianz Life, said.<\/p>\n

Nearly half of respondents (47%) told the firm they had withdrawn money from existing retirement savings to cover household expenses during that same period.<\/p>\n

Health care costs<\/a> are adding further pressure, with 59% of those surveyed saying they now prioritize medical expense savings over all other financial goals.<\/p>\n

\"Retirement Retirement savings are taking a hit as rising costs force many Americans to cut contributions and tap existing retirement funds.Halfpoint Images&sol;Getty Images Northwestern Mutual\u2019s retirement target reveals the scale of the savings gap <\/p>\n

The average American said $1.26 million was necessary for a comfortable retirement, a target Northwestern Mutual\u2019s 2025 Planning and Progress Study<\/a> labeled the \u201cmagic number.\u201d<\/p>\n

That figure declined about $200,000 from the prior year\u2019s record of $1.46 million, but it still vastly exceeds what the typical household has saved.<\/p>\n

More Retirement:<\/p>\n

John Roberts<\/a>, chief field officer at Northwestern Mutual, noted in the report that the lower figure still vastly exceeded what most households had saved.<\/p>\n

Among respondents with some retirement savings, one in four reported having just 1 year or less of their current annual income set aside.<\/p>\n

More than half (51%) said they considered it somewhat or very likely that they would eventually outlive their retirement savings<\/a>, the study found.<\/p>\n

The benchmark has since risen again, with the firm\u2019s 2026 edition of the same study placing the comfortable retirement target back at $1.46 million.<\/p>\n

Higher 2026 contribution caps give savers more room to catch up <\/p>\n

Congress and the Internal Revenue Service<\/a> have expanded the room available for workers to save, with 2026 contribution limits rising across major account types.<\/p>\n

The employee deferral limit for 401(k)<\/a> plans increased to $24,500 this year, and workers aged 50 and older can add an $8,000 catch-up contribution.<\/p>\n

Individual retirement account<\/a> (IRA<\/a>) limits also rose, reaching $7,500 for those under 50 and $8,600 for savers aged 50 and older in the current tax year.<\/p>\n

Roberts stressed that workers should pair those higher limits with a comprehensive and personalized financial plan tailored to their specific circumstances and retirement timeline.<\/p>\n

LaVigne encouraged savers to consult a financial professional who can help balance current household demands with the long-term objective of building adequate retirement funds<\/a>.<\/p>\n

Across the EBRI, Allianz Life, and Northwestern Mutual data, the typical household’s savings remain well below the targets respondents themselves identify as necessary for a comfortable retirement.<\/p>\n

Related: Retirees who follow the 4% rule may face a rude shock<\/a><\/p>\n

This story was originally published by TheStreet<\/a> on Jun 17, 2026, where it first appeared in the Retirement<\/a> section. Add TheStreet as a Preferred Source by clicking here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Fewer than 1 in 20 U.S. households hold $1 million in their retirement accounts, even though most Americans…\n","protected":false},"author":2,"featured_media":713349,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[5012,28,91064,147,530,69217,1048,3415,307548],"class_list":["post-713348","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-allianz-life","tag-business","tag-employee-benefit-research-institute","tag-personal-finance","tag-personalfinance","tag-respondents","tag-retirement-savings","tag-savings","tag-typical-household"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/713348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=713348"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/713348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/713349"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=713348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=713348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=713348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}