Retirees face a harder path to $1 million
Fewer than 1 in 20 U.S. households hold $1 million in their retirement accounts, even though most Americans treat that figure as the threshold for a comfortable retirement.
Research from federal agencies and private firms continues to show that the typical household saves far less than the seven-figure threshold respondents themselves identify as necessary.
The collective research raises a difficult question about whether seven figures is a realistic savings target for the typical American household.
Survey data shows the typical retiree falls far short of seven figures
Only about 4.7% of U.S. households held $1 million or more in retirement accounts in 2022, up from 3.2% in 2019, according to Employee Benefit Research Institute analysis of the Federal Reserve's most recent Survey of Consumer Finances.
A Clever Real Estate survey published in January 2026 found that the typical American retiree holds just $288,700 in combined savings and investments.
The same survey revealed that 29% of retirees have no retirement savings at all, while only 23% reported having more than $500,000 set aside.
Despite those numbers, about 40% of retirees in the Clever Real Estate survey said they believe it takes at least $1 million to retire comfortably, and 92% said most people underestimate the cost of a comfortable retirement.
Allianz Life finds that half of U.S. adults have cut retirement contributions
The savings shortfall is not limited to people who have already retired, and new research suggests the problem could grow worse for future retirees.
51% of U.S. adults said they had reduced or stopped contributing to their retirement savings in the prior six months, Allianz Life reported.
The insurer's fourth-quarter 2025 Quarterly Market Perceptions Study, which surveyed 1,005 respondents in the contiguous U.S., found that 66% said they had been unable to contribute as much to their savings in the prior six months due to the current economic environment.
While it may seem to hurt less in the short-term, cutting back on retirement savings now may hold back your ability to achieve your retirement goals in the long run
Younger workers felt the most impact, with 62% of Gen Z and millennial respondents reporting cutbacks compared with 46% of Gen X respondents or 36% of boomers.
"Achieving your dream retirement generally takes continual incremental progress over your working years," Kelly LaVigne, vice president of consumer insights at Allianz Life, said.
Nearly half of respondents (47%) told the firm they had withdrawn money from existing retirement savings to cover household expenses during that same period.
Health care costs are adding further pressure, with 59% of those surveyed saying they now prioritize medical expense savings over all other financial goals.
Northwestern Mutual's retirement target reveals the scale of the savings gap
The average American said $1.26 million was necessary for a comfortable retirement, a target Northwestern Mutual's 2025 Planning and Progress Study labeled the "magic number."
That figure declined about $200,000 from the prior year's record of $1.46 million, but it still vastly exceeds what the typical household has saved.
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John Roberts, chief field officer at Northwestern Mutual, noted in the report that the lower figure still vastly exceeded what most households had saved.
Among respondents with some retirement savings, one in four reported having just 1 year or less of their current annual income set aside.
More than half (51%) said they considered it somewhat or very likely that they would eventually outlive their retirement savings, the study found.
The benchmark has since risen again, with the firm's 2026 edition of the same study placing the comfortable retirement target back at $1.46 million.
Higher 2026 contribution caps give savers more room to catch up
Congress and the Internal Revenue Service have expanded the room available for workers to save, with 2026 contribution limits rising across major account types.
The employee deferral limit for 401(k) plans increased to $24,500 this year, and workers aged 50 and older can add an $8,000 catch-up contribution.
Individual retirement account (IRA) limits also rose, reaching $7,500 for those under 50 and $8,600 for savers aged 50 and older in the current tax year.
Roberts stressed that workers should pair those higher limits with a comprehensive and personalized financial plan tailored to their specific circumstances and retirement timeline.
LaVigne encouraged savers to consult a financial professional who can help balance current household demands with the long-term objective of building adequate retirement funds.
Across the EBRI, Allianz Life, and Northwestern Mutual data, the typical household's savings remain well below the targets respondents themselves identify as necessary for a comfortable retirement.
Related: Retirees who follow the 4% rule may face a rude shock
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This story was originally published June 17, 2026 at 11:03 AM.