How Many Americans Have Banked a Cool $5 Million for Retirement?

This article examines the small fraction of Americans—approximately 0.1%—who have saved over $5 million for retirement, highlighting the stark contrast with the average 401(k) balance of $146,400 at the end of 2025.

Retirement Savings Landscape

• Only 0.1% of Americans have saved $5 million or more for retirement, according to data from the Employee Benefit Research Institute.
• 20% of Americans aged 50 and older have no retirement savings at all (AARP, 2024).
• The average 401(k) balance reached $146,400 by the end of 2025, marking an 11% increase from the prior year (Fidelity).
• The average IRA balance grew 7% in 2025, reaching $137,095.
• Long-term savers (5+ years of contributions) held an average balance of $304,200 in Fidelity accounts.
• Fidelity reported a record 665,000 401(k) participants with million-dollar balances in Q4 2025.
• Women who contributed to their 401(k) for 15+ years held an average balance of $508,700 by the end of 2025, with 40% increasing their savings rates.

Healthcare Costs in Retirement

Fidelity’s 25th annual Retiree Health Care Cost Estimate (July 2026) projects that a 65-year-old retiring today will spend an average of $185,500 on healthcare throughout retirement, a 7.5% increase from the prior year’s estimate of $172,500.

Retirement Savings Tools

The SECURE 2.0 Act allows workers aged 60 to 63 to defer up to $35,750 into their 401(k) in 2026, including a super catch-up contribution of $11,250, providing a final savings push before retirement.

Strategies for Building Wealth

• Consistent contributions and employer matches are critical to long-term growth.
• Many investors are moving beyond the traditional 60/40 stock-and-bond split, exploring alternative assets or growth-oriented strategies.
• Discipline during market volatility—avoiding overreaction to bull or bear markets—is essential to reaching retirement goals.
• Phased retirement (e.g., part-time work or consulting) can extend the lifespan of a smaller nest egg while maintaining income.

Key Considerations

• The $5 million target is not universally necessary; lifestyle, location, and passive income sources (e.g., pensions, investments) determine individual needs.
• A lavish lifestyle in high-cost cities may require over $5 million, while a modest life in rural areas could be sustained with far less.
• Financial advisors can help tailor a realistic savings plan, whether targeting $5 million or a more modest goal.