Overview

• Federal Reserve data show only about 2.5% of Americans hold $1 million or more in retirement accounts and just 3.2% of retirees reach that mark, while Fidelity counts a record 497,000 401(k) millionaires.
• For households aged 65–74, average retirement savings total about $609,000 but the median is roughly $200,000, underscoring how a few large accounts skew the figures.
• Empower reports average 401(k) balances of $407,675 in the 40s and $622,566 in the 50s, with much lower medians of $162,143 and $251,758 respectively.
• Using more cautious withdrawal guidance near 3.5%, sustaining $50,000 in annual spending would require about $1.43 million, leaving typical midlife savers more than $1 million short at current medians.
• Access to 401(k) funds generally carries a 10% penalty before age 59½, with limited exceptions such as the Rule of 55, so early retirees need other savings or income sources to bridge the gap.