How Many People Have $1,000,000 in Retirement Savings?

Seeing $1,000,000 in your retirement account feels like finding a unicorn, but more people are reaching that number than you'd think. It’s not some wild fantasy, but it’s not super common either—at least not for the average person with a 401(k) or IRA. According to Fidelity’s latest numbers, just about 1.6% of retirement account holders at the end of 2024 had cracked the $1 million mark.

Hitting a million isn’t just about a fat paycheck. The secret sauce? Early and steady saving, sticking with the market during ups and downs, and never getting too fancy with risky moves. It’s way more about consistency than luck. Plenty of folks with average incomes get there by maxing out their employer match, bumping up their savings every year, and avoiding the urge to cash out early.

• The Reality of $1 Million: Who Actually Has It?
• What Sets Retirement Millionaires Apart
• Biggest Hurdles to Hitting Seven Figures
• Smart Moves for Growing Your Retirement
• Making the Million-Dollar Dream Possible

The Reality of $1 Million: Who Actually Has It?

Most of us see headlines about retirees with seven digits in their accounts and wonder if that’s even real. Surprise: it is, but it’s a pretty exclusive club. Looking at 2024 numbers from places like Fidelity and Vanguard, only about 1.6% to 2% of 401(k) participants have at least $1,000,000 tucked away. That boils down to roughly 422,000 401(k) millionaires tracked by Fidelity out of over 28 million accounts.

Retirement savings stats show this million-dollar mark is climbing, but it’s still pulled off mostly by people who’ve had time on their side. Most retirement millionaires are in their late 50s or 60s, which just makes sense—your money needs years to grow and compound. Here’s a quick look at how million-dollar savers break down by age, according to recent data:

Notice how rare it is for anyone under 50 to hit seven figures. Hitting $1 million takes time—decades of saving, investing, and not bailing out when markets wobble. It’s not just high earners doing it. Fidelity says plenty of teachers, nurses, and others with steady jobs get there by maxing out employer matches and boosting their savings rate little by little over the years.

Another thing: most people who hit that mark really stuck to their plan through thick and thin. They didn’t cash out when the market tanked. Instead, they kept steady during rough patches like the COVID rollercoaster in 2020 and stayed in for the long haul.

So, if you’re looking at your account and wondering if a million is doable, just remember: slow and steady really does win this race. It might feel far-off, especially if you’re starting later, but knowing how others did it can make it feel a little less like chasing a myth.

What Sets Retirement Millionaires Apart

So, how do people actually get to a million bucks in their retirement accounts? They’re not lottery winners or tech geniuses. Most are pretty methodical, and almost all share a few habits that help their money pile up over the years.

The latest data from Fidelity shows the typical retirement millionaire is in their early sixties and has been saving for nearly three decades. They usually contribute around 14-16% of their salary every year, including company matches. What’s wild is a lot of these folks never earned huge salaries. They just stayed consistent and didn’t pull from their accounts during market dips.

Here’s what they tend to get right:

• Retirement savings is automated—they set it and forget it, so it’s always growing in the background.
• They max out contributions or at least take full advantage of their employer’s match. Not leaving free money on the table is a big one.
• They mostly stick with a simple mix of index funds, not chasing trendy stocks or panicking during crashes.
• They increase their contributions as they get raises, even if it stings a little at the start.
• They don’t dip into their retirement accounts for emergencies or big purchases. They treat it as a no-touch zone.

Sarah Newcomb, a behavioral economist at Morningstar, sums it up:

“The folks who reach a million in retirement savings aren’t the ones who made a killing, but the ones who stayed the course—even when it was boring or tough.”

Bottom line: Consistency, patience, and a boring-but-effective investing approach are the not-so-secret weapons here. It’s not about being rich to start, but playing the long game and treating that nest egg like it’s untouchable until you actually retire.

Biggest Hurdles to Hitting Seven Figures

Let’s not sugarcoat it—stacking up $1 million for retirement isn’t exactly easy. Life throws a bunch of curveballs, and even folks who start out strong can get tripped up. The most common obstacles don’t just come from earning less, but from what happens with that money next.

• Not starting early enough. Waiting until your 40s or 50s to get serious about saving puts you at a huge disadvantage. The magic of compound growth needs plenty of years to work. Missing out on that early boost stings—big time.
• Tapping into retirement savings early. About a third of Americans have taken an early withdrawal or loan from their retirement accounts, according to Vanguard. That almost always throws long-term wealth goals off track.
• Living paycheck to paycheck. A survey by LendingClub showed that 60% of U.S. adults in 2024 lived paycheck to paycheck. With nothing left after the bills, there’s usually nothing to save.
• Not investing enough. Putting away 2% or 3% each year won’t cut it for most people. The millionaires tend to push for at least 10-15%—and increase that as they can.
• Falling for lifestyle creep. Every time a raise comes in, it’s tempting to upgrade your car or take fancier vacations instead of boosting savings. That’s one sneaky way dreams of building up a solid nest egg quietly fade out.

If you want a quick look at how these factors stack up, check out the numbers:

If you’re aiming to join the club with $1,000,000 in retirement savings, you’ve got to dodge these pitfalls as best you can. Getting past these hurdles is less about being perfect and more about getting back on track every time you slip up.

Smart Moves for Growing Your Retirement

Want that seven-figure balance in your 401(k) or IRA? It’s all about playing smart, not flashy. Let’s break down what’s proven to work for people who actually hit the million-dollar mark. Getting your retirement savings to grow takes a real plan—no magic tricks.

First, max out those employer contributions if you can. Companies hand out free money with matching 401(k) funds, but a lot of folks leave it on the table. If your job matches the first 4% you put in, you better believe every bit counts. According to Vanguard’s 2024 report, only about 15% of people maxed their contributions, but that’s usually where future millionaires hide.

Aim to bump up your annual savings rate. Experts recommend saving 15% of your salary for retirement. If that feels out of reach, start lower—just step it up by 1% every year. Most people don’t even miss the extra cash once it’s tucked away automatically.

• Automate your savings: Set your contributions to go straight from your paycheck, so you never see the cash and won’t be tempted to spend it.
• Don’t freak out and cash out: When stocks drop, the folks who stay put usually wind up ahead. Market crashes feel bad, but pulling your money can hurt way more in the long run.
• Cut down fees: Expense ratios and hidden costs in some funds eat away at your gains every year. Stick with index funds or ETFs where fees are way lower.
• Diversify: Spread your money across U.S. stocks, international stocks, and maybe some bonds. No one investment is perfect all the time, so mixing it up helps smooth out the rough patches.

And if you get a bonus, raise, or tax refund? Throw a chunk at your retirement instead of splurging. Even small windfalls make a big difference when you stick them in the market for a couple decades.

One more tip: Review your account at least once a year. Check your investment mix and rebalance if things have drifted. Staying hands-off is fine most of the time, but don’t snooze for years and find your money stuck in just one place.

Making the Million-Dollar Dream Possible

If you think hitting a million in retirement savings is just for tech CEOs, think again. Regular people have done it by following some pretty straight-forward habits, and it’s not all about bringing home a huge salary. Here’s what actually moves the needle.

First up, max out your employer match. If your company offers a 401(k) match, that is literally free money on the table. Fidelity reports show people who take full advantage of the match end up with almost twice as much in retirement savings compared to those who don’t. Seriously, ask HR if you aren’t sure what you should be doing.

Second, watch your savings rate. Million-dollar savers aren’t necessarily making six figures; a lot of them just set their contributions to 15% or more from the start and bump it up by a percent every year. Even moving from 6% to 10% can make a crazy difference over thirty years because of compounding—think $500 a month versus $800 a month, and then add growth on top. That adds up fast.

You also want to keep investing when the market gets rocky. The people who pulled out during the 2008 crash or the 2020 pandemic often lost out big. Fidelity says about a third of their retirement savings millionaires were investing through multiple recessions. Basically, ignore the drama and keep putting money in, no matter what financial news is screaming at you.

Don’t forget about fees. High-fee funds can wreck your long-term growth. Stick with index funds or low-fee mutual funds. According to Vanguard, a 1% difference in fees could mean tens of thousands less by retirement.

If you’re late to the game, all is not lost. People “catch up” by using those higher catch-up contribution limits after age 50 and sometimes working a few extra years. On average, those who work until 70 or beyond are way more likely to hit seven figures, partly because they give their money more time to grow and delay withdrawing.

So, to sum up the playbook:

• Max out your employer match from day one.
• Push your savings rate up every year, even if it’s just 1%.
• Stick with investing—even when the headlines are nasty.
• Keep your investment fees low.
• If you start late, take advantage of catch-up contributions and consider working a bit longer.

Million-dollar retirement savings isn’t magic—it’s just about following some smart, practical steps over time. It might sound boring, but boring is what works.