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Few Retirees Reach $1 Million as Typical Nest Egg Stalls at $200,000

New reports tie the shortfall to the pension-to-401(k) shift, with Gen X facing the largest gap.

Overview

  • Only 4.7% of Americans have at least $1 million in retirement accounts, according to Federal Reserve data.
  • For ages 65 to 74, the median retirement balance is $200,000 versus a $609,230 average, highlighting how large accounts skew the mean.
  • A Schroders survey shows Gen X expects to need over $1.1 million but to retire with about $712,000, a gap exceeding $400,000.
  • Social Security timing is pivotal: claiming at 62 cuts benefits by about 30% versus full retirement age, and delaying to 70 raises payments roughly 8% per year.
  • AARP reports 20% of adults over 50 have no retirement savings and 61% worry their money will not last through retirement.