How Many Americans Have Banked a Cool $5 Million for Retirement?

Only 0.1% of Americans have saved over $5 million for retirement, while the average 401(k) balance closed 2025 at just $146,400.

Fidelity projects a 65-year-old retiring today will spend $185,500 on healthcare throughout retirement, a 7.5% jump from the prior year.

The SECURE 2.0 Act lets workers between the ages of 60 and 63 defer up to $35,750 into their 401(k) in 2026, providing a powerful final savings push before retirement.

In a prior piece, we noted that only 4.7% of Americans have saved up at least $1 million for retirement, according to the Employee Benefit Research Institute. That seven-figure sum, enough to power retirement in an affordable city, is the milestone most savers and 401(k) contributors are chasing. Healthcare costs, however, are rising faster than many people anticipate. Fidelity's 25th annual Retiree Health Care Cost Estimate, released July 21, 2026, puts the average lifetime medical tab for a 65-year-old retiring today at $185,500, a 7.5% jump from the prior year's $172,500. The increase reflects higher medical prices, growing utilization of health services, and rising costs tied to chronic conditions. Even so, 54% of pre-retirees incorrectly expect Medicare to cover all of their healthcare expenses in retirement, according to Fidelity's research, a misconception that makes careful planning all the more urgent for any saver approaching a seven-figure nest egg.

There is no universal magic savings number. The right figure depends entirely on how personal expenses stack up against the passive income generated from pensions, investment portfolios, and part-time work. A lavish lifestyle in Manhattan could require well over $5 million to sustain a decades-long retirement, while a modest life in rural Nebraska could be funded comfortably with a fraction of that amount.

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Legislation is also giving near-retirees fresh tools to close the gap. Under the SECURE 2.0 Act, savers who turn 60, 61, 62, or 63 during the calendar year can contribute up to $11,250 in super catch-up funds to their 401(k), pushing the total annual deferral limit to $35,750 for the 2026 tax year. That window is narrow: once a participant turns 64, the enhanced limit reverts to the standard $8,000 catch-up. For workers in their early 60s who feel behind, this provision offers one of the most powerful final pushes available before retirement.