<\/p>\n
Fewer than 1 in 20 U.S. households hold $1 million in their retirement accounts, even though most Americans treat that figure as the threshold for a comfortable retirement.<\/p>\n
Research from federal agencies and private firms 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% 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’s most recent Survey of Consumer Finances.<\/p>\n
A Clever Real Estate 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 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.<\/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, 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 are adding further pressure, with 59% of those surveyed saying they now prioritize medical expense savings over all other financial goals.<\/p>\n
Retirement savings are taking a hit as rising costs force many Americans to cut contributions and tap existing retirement funds.<\/p>\n
Halfpoint Images/Getty Images<\/p>\n
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 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.\u00a0<\/p>\n
More Retirement:<\/p>\n
Vanguard drops playbook on retirement incomeVanguard warns workers losing thousands in 401(k)sFidelity’s wake-up call on Social Security, IRAs, and 401(k)s<\/p>\n
John Roberts, 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.\u00a0<\/p>\n
More than half (51%) said they considered it somewhat or very likely that they would eventually outlive their retirement savings, 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 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) 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 (IRA) 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.<\/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<\/p>\n
#Retirees #face #harder #path #million<\/p>\n","protected":false},"excerpt":{"rendered":"
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