Are Americans Ready for Retirement? The Motley Fool's Latest Research Looks at the Data -- Which May Alarm You

Core Insights - A significant portion of working Americans are unprepared for retirement, with 47% of households at risk of insufficient savings [2][4] - The median retirement account value in 2023 is reported to be $87,000, indicating a lack of adequate savings among many workers [4] - The 2025 Retirement Confidence Survey reveals that 51% of workers have less than $100,000 saved, and 32% have less than $25,000, which is concerning as individuals age [6] Retirement Savings Data - According to the 2025 Retirement Confidence Survey, the distribution of savings among workers is as follows: - Less than $1,000: 16% - $1,000 to $9,999: 9% - $10,000 to $24,999: 7% - $25,000 to $49,999: 7% - $50,000 to $99,999: 12% - $100,000 to $250,000: 13% - $250,000 or more: 37% [4] Nest Egg Requirements - The "4% rule" provides a guideline for retirement withdrawals, suggesting that retirees can withdraw 4% of their nest egg in the first year, adjusted for inflation thereafter. The first-year withdrawals based on various nest egg sizes are: - $250,000: $10,000 - $500,000: $20,000 - $1 million: $40,000 - $2 million: $80,000 [7]