Here’s How Many Americans Have $1 Million Saved for Retirement by Age 50
A $1 million nest egg might not go as far as it used to, but joining the two-comma club is still a milestone worth celebrating — especially for those still more than a decade away from their full retirement age of 67.
Most aren’t anywhere near seven figures, but a small handful of savvy, skilled, diligent, disciplined, high-earning and/or lucky young savers have socked away $1 million or more while still at the dawn of middle age.
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Here’s a look at how many people have saved $1 million for retirement before 50 and what you can do to join them.
The Average Is Far From $1M — and Average Isn’t Really Average
If the goal is $1 million, the vast majority of those under 50 aren’t ready to break out the champagne and confetti just yet. According to financial services giant Empower, the average person in their 40s has $593,109 saved in a dedicated retirement account, but that’s misleading because a few ultra-wealthy households skew the average up — way up.
The more reliable figure is $220,919, the median retirement balance for 40-somethings, which is approaching three times less than the average and 4.5 times less than the $1 million goal.
The Data Is Muddled, But It’s Clear That 401(k) Millionaires Are Rare
It’s notoriously difficult to track retirement savings in the U.S. because, while individual fund providers offer statistics on the plans they administer, there is no unified national database. Additionally, individual savings are often scattered across multiple accounts after years of job changes, 401(k) rollovers and the opening of individual retirement funds. Also, many people have much of their net worth tied up in their homes, and most carry personal debt that counts against their assets.
The most credible and commonly cited data source is the most recent Federal Reserve Survey of Consumer Finances (SCF), a triennial report updated in 2025, but based on data from previous years. It found that less than 2.5% of all U.S. adults have $1 million or more saved in dedicated retirement accounts. The average person typically builds wealth through their 50s, peaking in their 60s before declining in their 70s.
40-Something Millionaires Are the True 1-Percenters
According to Fidelity, the average 401(k) millionaire is roughly 59 — just six months shy of the earliest age for penalty-free withdrawals. So, while it’s impossible to pinpoint precisely how many 40-somethings have seven-figure nest eggs, it’s certainly much fewer than 2.5%, making those who reached that mountaintop the true 1-percenters of their age group.
The Fed is currently compiling updated data for its forthcoming triennial report in late 2026. Will it reveal that more 40-somethings have $1 million retirement funds approaching the late 2020s than in the first half of the decade?
The answer is that you’re the only prospective millionaire who matters.
Haven’t Banked 7 Figures Yet? Don’t Panic, But Do Plan
If you’re in your 40s and not part of the 2.5% of 401(k) millionaires, follow these tips to join the club.
Kiplinger suggests being aggressive while you’re still young enough to weather the inevitable downturn by shifting to a stock-heavy portfolio. However, don’t be recklessly aggressive by risking it all on the fortunes of a handful of companies through individual stock-picking.
The financial services and technology company Ascensus notes that while you can’t take advantage of catch-up contributions until you turn 50, you can adjust your lifestyle to direct every possible dollar of discretionary income toward your retirement fund, and you should while you still have more than a decade of compounding — maybe two — to grow your nest egg.
Explore the different tax advantages of traditional versus after-tax Roth accounts. Choosing based on your current and projected incomes could mean the difference of five or even six-figure savings, depending on your balance and tax bracket when you start making withdrawals.
Contribute windfalls like tax refunds and bonuses to retirement funds, and resist lifestyle inflation by maintaining current spending as your income rises.
Remember the golden rule of saving in an employer-based retirement fund at any age: Always contribute at least enough to secure the full company match — never leave free money on the table.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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