That means our couple is actually ahead of most Americans in their age group. And they are well ahead of the 29% of retirees who, in a 2026 survey by Clever Real Estate, reported having no savings at all (4).But it’s important to note that the Federal Reserve number is the mean savings — which is heavily impacted by high earners who pull this number way up. If you look at the median savings, which is less skewed by extremes, the average is actually $185,000 (3).According to the Federal Reserve (2), the aver ...

Core Insights - The article discusses lesser-known rules regarding 401(k) plans that can significantly impact retirement savings and financial planning Group 1: Withdrawal Rules - The Rule of 55 allows individuals aged 55 or older to withdraw from their 401(k) without a 10% penalty if they separate from service [2] - State public safety employees can access this rule as early as age 50 [2] Group 2: Contribution Limits - In 2026, the contribution limit for 401(k) plans will be $24,500, with an additional catch-up contribution of $8,000 for those over 50, totaling $32,500 [3] - For individuals aged 60 to 63, the catch-up contribution limit increases to $11,250, allowing for a total contribution limit of $35,750 [3] Group 3: Tax Benefits - Contributing the maximum amount to a 401(k) reduces taxable income, thereby lowering the overall tax burden [4] Group 4: Roth Conversions - Converting 401(k) assets to a Roth IRA allows for tax-free growth and tax-free withdrawals, beneficial during years of lower income [5] Group 5: Loans Against 401(k) - Some 401(k) plans permit loans against the account, which must be repaid with interest; this option is recommended for emergencies [6] - If employment ends before the loan is repaid, the outstanding balance is taxed as a withdrawal [6]

Core Insights - Many individuals in their mid-40s have minimal retirement savings, making a $1 million portfolio a significant advantage compared to most Americans [1][2] - A $1 million retirement fund may not suffice for a luxurious retirement, prompting the desire to increase it to $2 million [2][3] Investment Growth Potential - Doubling a $1 million portfolio to $2 million by retirement is achievable with proper strategy and discipline [3] - Historical data shows that major U.S. stock indexes have provided average annual returns of 8% to 10%, which can significantly grow a $1 million investment over time [4] - At an 8% annual return, a $1 million investment could grow to approximately $4.66 million in 20 years, while a 10% return could increase it to about $6.73 million [4][7] Retirement Planning Considerations - The timeline for retirement greatly influences financial goals, with different outlooks for those planning to retire at ages 55 versus 65 or 67 [6] - Catch-up contributions become available at age 50, allowing for higher tax-advantaged savings limits, which can further enhance retirement savings [7]