Here’s how many Americans actually have $1M by retirement — and the 3 big moves they made. Make sure you’re on track

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These days, many people think they need over a million dollars to be able to retire comfortably.

More specifically, most Americans think the magic number is $1.26 million, according to a 2025 Northwestern Mutual survey (1).

However, only a small minority of people will have that much when they clock out of work. In fact, according to a Congressional Research Service analysis of 2022 Federal Reserve data, only 4.6% of American households had more than $1 million in their retirement accounts (2).

The same data revealed that the median retirement nest egg was only $88,000 across all American households.

Older Americans were more likely to be in the seven-figure club. According to an American Society of Pension Professionals and Actuaries (ASPPA) analysis of the same data, 9.2% of those aged 55 to 64 had $1 million or more in their retirement accounts (3).

Still, that’s more than 90% of Americans who aren’t anywhere close to the magic number.

There are ways to improve your odds of getting to a $1-million-plus nest egg, but it will take work. Here are the top three big money moves you can make to secure your spot.

As of mid-2025, Americans’ average personal savings rate was just 4.6%, according to the U.S. Bureau of Economic Analysis. In other words, for every $20 in disposable income, most people were saving less than $1 (4).

If you can save more than this, you could put yourself ahead of most of your peers. Aim for a monthly savings rate of at least 10% to improve your odds of a million-dollar retirement.

To do this, maximize contributions to tax-efficient savings plans like the 401(k), Roth IRA and others, and see if your employer matches any contributions.

Consider switching jobs to an employer who will either pay you more or match your contributions. You could also sign up for one of several online platforms that enable you to automate your savings so that you’re always on track.

Once you’ve set up a steady saving habit, the next step is making sure that money actually works for you. You can boost your returns simply by picking a smarter place to stash your cash.

Rather than keeping your loose change in traditional low-interest checking and savings accounts, consider opening a high-yield savings account to earn higher returns on unused cash.

You can earn up to 4.50% annual percentage yield (APY) on your savings with SoFi’s high-yield checking and savings account. That’s nearly 10 times higher than the 0.40% average interest rates offered by traditional big-name banks.

Even better, SoFi won’t charge you any fees and has no monthly maintenance costs or minimum balance requirements.

What’s more, you can get up to $300 when you sign up with SoFi and set up a direct deposit.

Passively investing in low-cost index funds has become the norm. In fact, for the past nine years, passive index funds have attracted more capital than active funds, according to Morningstar (5).

It could be because passively investing in low-cost index funds has been relatively easy and lucrative in recent years. Vanguard’s S&P 500 ETF has delivered an annualized return of 13.62% since 2015 (6).

This is slightly above the historical average since 1957, which is just over 10% (7).

While past performance isn’t an indicator of future returns, if you assume 10% annual returns and commit to a 10% annual savings rate on a salary of $70,000, you could get to $1 million within 29 years.

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Even if you’re 40 years old, deploying this plan today could get you into the seven figure club by the time you retire. If you can start earlier, earn more than $70,000, or save a bigger proportion of your monthly paycheck, you could even get there faster.

There’s no one-size-fits-all path to building wealth. Depending on your age, income and how far along you are in your retirement savings journey, you may need to tweak your investment strategy to stay on track toward your goal.

That’s where a financial advisor can help you. According to research from Vanguard, people who work with financial advisors can see 3% higher net returns compared to those who don’t.

With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.

Vanguard’s hybrid advisory system combines advice from professional advisers with automated portfolio management to make sure your investments are working to achieve your financial goals.

All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisers will help you set a tailored plan and stick to it.

Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.

While a simple saving and investing plan could get you into the million-dollar retirees club, it won’t guarantee peace of mind unless you can also reduce your debt burden. You can’t really enjoy your golden years with a hefty mortgage, expensive credit card debt or monthly auto payments to worry about.

Unfortunately, nearly half of all American seniors have credit card debt and 9% of them have some form of medical debt, according to the AARP. It’s becoming increasingly difficult to achieve a debt-free retirement (8).

High-interest credit card debt — with average rates hovering above 20% — can quickly snowball out of control (9).

If you’re juggling multiple balances or struggling to keep up with payments, consolidating your debt with a personal loan could make things easier. This way, you’ll have just one monthly payment, ideally at a lower interest rate, making it easier for you to keep track of and pay off.

Credible is an online marketplace that allows you to compare personal loan rates and features from multiple lenders near you — all in one place.

The process is completely free, and won’t impact your credit score. Simply answer a few simple questions, then Credible will automatically display actual rates offered by top lenders like SoFi, Discover, Upstart, and more. You can then make a selection based on your requirements and preferences.

With rates starting at 6.49% APR — you could potentially save a ton in interest.

If you’re a homeowner, you can also leverage the equity you’ve built up over the years to repay outstanding debt using a Home Equity Line of Credit (HELOC).

With home values higher than ever, you can make your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic.

Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg.

Rates on HELOCs and home equity loans are typically lower than interest on credit cards and personal loans, making them an appealing option for homeowners with substantial equity.

Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.

Just answer a few simple questions, and LendingTree will match you with up to five lenders with low rates today. Terms and Conditions apply. NMLS# 1136.

Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Northwestern Mutual (1); Congressional Research Service (2); (3); U.S. Bureau of Economic Analysis (4); Morningstar (5); Nasdaq (6); Questrade (7); AARP (8); LendingTree (9)

This article originally appeared on Moneywise.com under the title: Here’s how many Americans actually have $1M by retirement — and the 3 big moves they made. Make sure you’re on track

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