This article adheres to strict editorial standards. Some or all links may be monetized.
As millions of working Americans race to save enough for retirement, you may wonder how you’re doing compared to the rest of the crowd.
While Americans now consider $1.46 million the magic retirement savings number (according to a 2024 Northwestern Mutual survey), the reality is many are far short of that sum.
Must Read
- Real Estate: Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
- Retirement: Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
- Investing: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
As of 2022, the median retirement account balance among savers aged 45 to 54 was $115,000, according to the Federal Reserve’s Survey of Consumer Finances. This means if you’re 50 years old with $500,000 in savings, you’re clearly pacing ahead of your peers.
Ultimately, though, your best bet is to understand what $500,000 in savings will do for you in the context of the retirement you want. Here are some steps to take to determine whether you’re all set with $500,000 in savings, or if you ought to be boosting your nest egg considerably.
Figure out how much annual income $500,000 gives you and estimate your expenses
It’s easy to get overwhelmed when dealing with a big number like $500,000, so it’s important to break down what that might mean in terms of annual retirement income. Financial experts have long advocated using the 4% rule, which has you withdrawing 4% of your savings balance your first year of retirement and then adjusting subsequent withdrawals for inflation.
If we apply this percentage, a $500,000 nest egg allows for $20,000 of annual income initially. That figure will then increase modestly from year to year to account for inflation.
Let’s imagine you’re looking at $23,000 a year in Social Security benefits like the typical retired worker today, plus $20,000 a year from your savings for a total of $43,000. Will that be enough for you to retire without stress? It depends on the type of retirement you want.
Whether you’re looking for help drawing up a monthly budget or trying to increase the value of your nest egg, consider reaching out to a qualified professional who specializes in retirement planning and can help you make the most of every dollar.
Advisor.com connects you with participating unaffiliated third-party registered investment advisors (RIAs) through its matching tool or provides personalized investment advice via its in-house wealth management service, Advisor Wealth Management.
From their database of thousands, you can find a pre-screened financial advisor you can trust. You can then set up a free, no obligation consultation to see if they’re the right fit for you.
As of the second quarter of 2025, Americans aged 65 and over had a median annual income of about $62,296, according to the Bureau of Labor Statistics. Limiting yourself to just $43,000 could therefore leave you with a shortfall — unless you intend to live frugally and have minimal needs and expenses. So rather than getting caught up in averages, try to estimate what your annual expenses might amount to.
Of course, there are two big factors you’ll want to account for:
- Taxes. Unless you have your savings in a Roth IRA or 401(k), your withdrawals will be subject to taxes, as might your Social Security benefits.
- Health care. In 2023, the typical 65-year-old could expect to spend $157,500 on health care expenses throughout retirement, according to Fidelity. In 2024, the standard monthly cost for Medicare Part B alone is $174.70.
Speaking of retirement accounts, if you find that you’d like to grow your retirement fund, investing in gold may be an option to help you grow your nest egg.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Read more: Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
Are you set with $500,000 for retirement, or should you have more?
The savings you bring into retirement may not be the only income you have access to once your career has ended. You may be eligible for a pension through your former employer, or get rental income from a property you own.
And don’t forget Social Security. Contrary to rumors, the program is not in danger of going away. And while benefit cuts are a possibility, lawmakers have never let those happen before, so they may be avoidable once again. The typical retired worker today collects about $1,915 a month in Social Security, but you can get an estimate of your anticipated retirement benefit by creating an account on SSA.gov.
Ultimately, you may run the numbers and determine that you’re on track for a stress-free retirement with $500,000 in savings. Or, you may decide that it’ll take a larger savings balance than that to enjoy the lifestyle you want.
The good news is that if you’re 50 years old, you may easily have another decade and a half of earning years ahead of you. And being 50 means that you’re eligible to make catch-up contributions to an IRA or 401(k). So if, after crunching the numbers, you feel that $500,000 won’t be enough to buy you a stress-free retirement, you have plenty of time to boost your nest egg accordingly.
There are a few low-risk ways to save more efficiently and bulk up your savings if you feel behind on your goal.
Just as little acorns grow into mighty oaks, small investments with Acorns can become a lifestyle boost in retirement.
Acorns is an automated investing and saving app that lets you save and invest while you spend. When you make a purchase on your credit or debit card, Acorns will automatically round up the price to the nearest dollar and put the remaining spare change into a smart investment portfolio. This way, even the most essential spending translates to money saved.
Sign up now and you can get a $20 bonus investment. This is an easy way to grow your wealth without even thinking about it, even after you retire.
What to read next
- Approaching retirement with no savings? Don’t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and ‘anyone’ can do it
- Grant Gardone reveals the ‘real problem’ with US real estate (and what average Americans must actually do to get rich)
- 22 US states are already in a recession — protect your retirement savings with these 10 essential money moves ASAP
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.