Way Fewer Than You Think

For all the talk of million-dollar retirements, hitting that seven-figure milestone is a lot rarer than most people blockume. In fact, most people won’t even come close.

According to the Federal Reserve’s latest Survey of Consumer Finances, just 4.7% of households with retirement accounts have $1 million or more stashed away. And if you’re talking about $2 million? That number drops to 1.8%. By the time you hit $3 million, we’re in unicorn territory—only 0.8% of retirement savers have that much.

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So how much do most people actually have? Among households led by someone between 65 and 74, the average retirement savings is around $609,230. Sounds decent, until you realize the median is only $200,000, meaning half of households have even less than that. For those over 75, the numbers drop further: $462,410 on average, and a median of just $130,000.

The gap between average and median is a flashing red light. A few super-savers are skewing the curve, while the majority fall short—sometimes dangerously short—of what financial advisors recommend. And this isn’t about luxury retirements with yachts and infinity pools. This is about affording groceries, property taxes, and health care when you’re no longer working.

Part of the issue is access. Nearly half of all households don’t even have a retirement account, according to the Federal Reserve. Whether due to low wages, job instability, or a lack of financial education, many people simply never get started—or start too late.

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And even if they do save, how much income does that actually generate?

On average, retired households bring in just under $28,000 per year, according to data from the American Community Survey. But that figure shifts depending on where you live. In Alaska, retirees average over $36,000 annually, while in Indiana, it’s closer to $20,600. Some states, like California and Florida, fall somewhere in between. And the highest retirement income in the country? That belongs to Washington, D.C., with averages topping $43,000.

Of course, averages only tell part of the story. Incomes are often pieced together from a mix of sources. The vast majority of retirees—over 90%—receive Social Security, and for two-thirds, it makes up more than half of their total income. For about one in four, it’s their only income. Pensions, if you’re lucky enough to have one, come next. Investment income, rental property, and part-time work make up the rest—but not everyone has access to those streams.