Overview
- Federal Reserve figures show only about 4.6% of households hold $1 million or more in retirement accounts and just 3.2% of retirees reach that mark, even as a record but small group of 401(k) millionaires lifts averages.
- Betterment’s 2025 survey finds 48% of workers believe they’ll need at least $1 million to retire, yet only 27% think they will actually hit that target, reflecting rising financial anxiety.
- Bureau of Labor Statistics data put average retiree household spending near $60,000 a year, implying about $1.5 million under the 4% rule, while recent research shows many retirees withdraw closer to 2% annually.
- Gen X remains the most worried and underprepared cohort, with a median $107,000 in total retirement savings and high debt burdens after decades without early 401(k) auto-features and repeated market shocks.
- Northwestern Mutual reports Americans working with a financial advisor report roughly double the retirement savings of non-clients—$132,000 versus $62,000—alongside earlier planned retirement ages and higher confidence.