A recent Federal Reserve survey indicates that just 3.2% of retirees have accumulated $1 million or more in their accounts. This finding comes as 40% of retirees report believing they need at least that amount for financial security in retirement.
Another survey by Northwestern Mutual suggests Americans now consider $1.26 million the "magic number" for a comfortable retirement in 2025. That figure exceeds the traditional seven-figure threshold by a quarter million dollars.
Inflation reached 2.7% in 2025, according to U.S. Bureau of Labor Statistics data. A Clever Real Estate survey published in January 2026 found the typical U.S. retiree has only $288,700 saved. The same survey revealed 23% of retirees have over half a million in savings, while 29% reported having no retirement savings at all.
Workers are also reducing retirement contributions. The Allianz Center for the Future of Retirement's Q4 2025 Quarterly Market Perceptions Study showed 51% of U.S. adults had cut or stopped contributions to retirement savings in the previous six months.
More Americans are taking early retirement due to health issues or job redundancies, compounding these financial challenges.
Financial expert Suze Orman has stated that even $2 million in retirement savings might be insufficient for those living into their 90s. She described that amount as "chump change."
For 2026, IRA contribution limits are set at $7,500 for those under 50 and $8,600 for those 50 and older. Traditional IRA contributions may be tax-deductible, while Roth IRA contributions use after-tax dollars but offer tax-free growth and withdrawals under certain conditions.
Some companies promote alternative retirement investment options. Thor Metals offers gold IRAs that allow physical gold holdings within retirement accounts. Arrived, backed by investors including Jeff Bezos, enables real estate investments starting at $100 without landlord responsibilities.
Acorns provides an automated savings tool that rounds up purchases to invest spare change, currently offering a $20 bonus for new accounts with recurring contributions.