Here’s how many Americans actually have $1M by the time they retire — and the 3 big moves they made. Are you on track?

Core Insights - The perception among Americans is that a retirement savings goal of $1.26 million is necessary, but only 4.6% of households have over $1 million saved for retirement [1][2] - The median retirement savings across American households is only $88,000, with only 9.2% of individuals aged 55 to 64 having $1 million or more in their accounts [2] Group 1: Retirement Savings Statistics - A Northwestern Mutual survey indicates that most Americans believe they need $1.26 million to retire comfortably [1] - According to a Congressional Research Service analysis, only 4.6% of American households had more than $1 million in retirement accounts as of 2022 [1] - The median retirement nest egg for all American households is $88,000 [2] Group 2: Age Demographics - Older Americans, particularly those aged 55 to 64, are more likely to have substantial retirement savings, with 9.2% having $1 million or more [2] - This implies that nearly 90% of Americans are not close to the perceived retirement savings goal [2] Group 3: Strategies for Improvement - To increase the likelihood of reaching a $1 million retirement savings goal, individuals should aim for a monthly savings rate of at least 10% [4] - Maximizing contributions to tax-efficient savings plans like 401(k) and Roth IRA is recommended, along with seeking employers who match contributions [5] - Passive investing in low-cost index funds has gained popularity, with passive funds attracting more capital than active funds over the past nine years [6]