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These days, many people think they need over a million dollars to be able to retire comfortably.
More specifically, most Americans think the magic number is $1.26 million, according to a 2025 Northwestern Mutual survey (1).
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However, only a small minority of people will have that much when they clock out of work. In fact, according to a Congressional Research Service analysis of 2022 Federal Reserve data, only 4.6% of American households had more than $1 million in their retirement accounts (2).
The same data revealed that the median retirement nest egg was only $88,000 across all American households.
Older Americans were more likely to be in the seven-figure club. According to an American Society of Pension Professionals and Actuaries (ASPPA) analysis of the same data, 9.2% of those aged 55 to 64 had $1 million or more in their retirement accounts (3).
Still, that’s more than 90% of Americans who aren’t anywhere close to the magic number.
There are ways to improve your odds of getting to a $1-million-plus nest egg, but it will take work. Here are the top three big money moves you can make to secure your spot.
1. Supercharge your savings
As of mid-2025, Americans’ average personal savings rate was just 4.6%, according to the U.S. Bureau of Economic Analysis. In other words, for every $20 in disposable income, most people were saving less than $1 (4).
If you can save more than this, you could put yourself ahead of most of your peers. Aim for a monthly savings rate of at least 10% to improve your odds of a million-dollar retirement.
To do this, maximize contributions to tax-efficient savings plans like the 401(k), Roth IRA and others, and see if your employer matches any contributions.
Consider switching jobs to an employer who will either pay you more or match your contributions. You could also sign up for one of several online platforms that enable you to automate your savings so that you’re always on track.
Once you’ve set up a steady saving habit, the next step is making sure that money actually works for you. You can boost your returns simply by picking a smarter place to stash your cash.
Rather than keeping your loose change in traditional low-interest checking and savings accounts, consider opening a high-yield savings account to earn higher returns on unused cash.
To get started, a high-yield account, such as a Wealthfront Cash Account, can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account can provide a base variable APY of 3.50%, but new clients can get a 0.65% boost over their first three months for a total APY of 4.15% provided by program banks on your uninvested cash. That’s over nine times the national deposit savings rate, according to the FDIC’s October report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
2. Focus on a tried-and-tested investment strategy and stick with it
Passively investing in low-cost index funds has become the norm. In fact, for the past nine years, passive index funds have attracted more capital than active funds, according to Morningstar (5).
It could be because passively investing in low-cost index funds has been relatively easy and lucrative in recent years. Vanguard’s S&P 500 ETF has delivered an annualized return of 13.62% since 2015 (6).
This is slightly above the historical average since 1957, which is just over 10% (7).
While past performance isn’t an indicator of future returns, if you assume 10% annual returns and commit to a 10% annual savings rate on a salary of $70,000, you could get to $1 million within 29 years.
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Even if you’re 40 years old, deploying this plan today could get you into the seven figure club by the time you retire. If you can start earlier, earn more than $70,000, or save a bigger proportion of your monthly paycheck, you could even get there faster.
There’s no one-size-fits-all path to building wealth. Depending on your age, income and how far along you are in your retirement savings journey, you may need to tweak your investment strategy to stay on track toward your goal.
That’s where a financial advisor can help you. According to research from Vanguard, people who work with financial advisors can see 3% higher net returns compared to those who don’t.
Advisor.com can quickly match you with an advisor who can guide you through your options. The platform’s advisors are fiduciaries, meaning they are legally obligated to act in your best interest.
Just answer a few questions about your investment timeline and your goals, and Advisor.com will match you with a reputable financial advisor.
Book a free, no-obligation call today to see if they’re the right fit for your needs.
3. Eliminate debt
While a simple saving and investing plan could get you into the million-dollar retirees club, it won’t guarantee peace of mind unless you can also reduce your debt burden. You can’t really enjoy your golden years with a hefty mortgage, expensive credit card debt or monthly auto payments to worry about.
Unfortunately, nearly half of all American seniors have credit card debt and 9% of them have some form of medical debt, according to the AARP. It’s becoming increasingly difficult to achieve a debt-free retirement (8).
High-interest credit card debt — with average rates hovering above 20% — can quickly snowball out of control (9).
If you’re juggling multiple balances or struggling to keep up with payments, consolidating your debt with a personal loan could make things easier. This way, you’ll have just one monthly payment, ideally at a lower interest rate, making it easier for you to keep track of and pay off.
Credible is an online marketplace that allows you to compare personal loan rates and features from multiple lenders near you — all in one place.
The process is completely free, and won’t impact your credit score. Simply answer a few simple questions, then Credible will automatically display actual rates offered by top lenders like SoFi, Discover, Upstart, and more. You can then make a selection based on your requirements and preferences.
With rates starting at 6.49% APR — you could potentially save a ton in interest.
If you’re a homeowner, you can also leverage the equity you’ve built up over the years to repay outstanding debt using a Home Equity Line of Credit (HELOC).
With home values higher than ever, you can make your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic.
Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg.
Rates on HELOCs and home equity loans are typically lower than interest on credit cards and personal loans, making them an appealing option for homeowners with substantial equity.
Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.
Just answer a few simple questions, and LendingTree will match you with up to five lenders with low rates today. Terms and Conditions apply. NMLS# 1136.
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Northwestern Mutual (1); Congressional Research Service (2); (3); U.S. Bureau of Economic Analysis (4); Morningstar (5); Nasdaq (6); Questrade (7); AARP (8); LendingTree (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.