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These days, many Americans think they need over a million dollars to be able to retire comfortably.
More specifically, they expect their magic number for retirement to be $1.26 million, according to a 2025 Northwestern Mutual survey (1).
However, only a small number 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 54.3% of U.S. households even had any retirement account assets to begin with (2). Of those, only 4.6% had more than $1 million.
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 supposed magic number.
And the average retirement balances make that crystal clear. Fidelity Investments data from Q4 2024 found that the average 401(k) balance for baby boomers was $249,300, while the average IRA balance was $257,002 (4).
There are ways to improve your odds of getting to a $1-million-plus nest egg, but it takes work and a bit of pre-planning. Here are the top three big money moves you can make to secure your spot.
As of November 2025, Americans’ average personal savings rate was just 3.5%, according to the U.S. Bureau of Economic Analysis (5). In other words, for every $20 in disposable income, most people saved around 70 cents.
If you can sock away more than this, you could put yourself ahead of your peers. Aiming for a monthly savings rate of at least 10% could improve your odds of a million-dollar retirement, especially if you’re putting that money to work over 30 years.
To do this, you could maximize contributions to tax-efficient savings plans like the 401(k), Roth IRA and others, then see if your employer matches any contributions.
If not, 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 the saving process 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.
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 provides a base variable APY of 3.30%, but new clients can get a 0.65% boost over their first three months for a total APY of 3.95% provided by program banks on your uninvested cash. That’s 10 times the national deposit savings rate, according to the FDIC’s December 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.
Passively investing in low-cost index funds has become the norm for many Americans. In fact, for the past decade, passive index funds have attracted more capital than active funds, according to Morningstar (6). In 2024 alone, global ETF inflows pulled in $2 trillion of capital flows, according to a paper published for the S&P Global’s Market Intelligence series (7).
This 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 14.78% for the past 10 years (8).
This is slightly above the historical average since 1957, which is just over 10% (9).
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 reach $1 million within 29 years.
Even if you’re 35 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.
Just do what you can to start sooner rather than later, so that you can benefit from the power of compound returns.
And a great place to start is by investing spare change from everyday purchases through a micro-investing app like Acorns.
All you have to do is link your bank account or credit card, and Acorns will round up your everyday purchases to the nearest dollar, then invest the excess into a smart investment portfolio.
For instance, if you make a $23.45 purchase at a restaurant, Acorns will round up the expense to $24 and automatically invest the 55-cent difference into a diversified portfolio of ETFs.
Even better, Acorns offers the ability to set up recurring monthly deposits to supercharge your savings. And if you sign up now with just a $5 monthly contribution, you can get a $20 bonus investment to get started.
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 up to three advisors 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.
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, according to the AARP. It’s becoming increasingly difficult to achieve a debt-free retirement (10).
High-interest credit card debt — with average rates currently hovering above 23% according to LendingTree — can quickly snowball out of control (11).
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.
Whether you’re planning to retire at 55 or 65, an essential part of the process is trying to be as debt free as possible come your golden years. If you’re struggling to pay down your debts, here are the two most common methods of tackling those payments: the avalanche and snowball techniques.
The avalanche method focuses on paying down your highest-interest debts first. This can create a cascading effect where, after the big debt is paid, you knock off the smaller ones quickly.
Meanwhile, the snowball method starts with paying down your smaller debts one after another to build up steam. Then, once you’re down to one debt, you put all your resources into paying it off. From here, most financial experts recommend building out an emergency fund, then getting to investing as soon as possible. But becoming debt-free is the first, and arguably most important, step.
If you’re not sure where to start, it might be helpful to assess your financial situation to figure out where you stand.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards, and more — make it easier to stay on top of your retirement contributions and overall financial goals.
