Achieving a $2 million nest egg for retirement is relatively uncommon among Americans. According to the Employee Benefit Research Institute, less than 2% of households have $2 million or more saved for retirement. Factors like lifetime earnings, investment growth and inheritance play roles in achieving this level of wealth. However, building a $2 million retirement nest egg is possible with consistent savings, even if it is quite rare.
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How Many Americans Have Nest Eggs of $2 Million?
Few retirees accumulate $2 million in retirement savings. Using data from the 2022 Survey of Consumer Finances, the Employee Benefit Research Institute (EBRI) calculated that only 1.8% of households have saved $2 million in retirement accounts. This places them among the wealthiest retirees, as most rely on more modest savings, pensions and Social Security.
A larger but still limited percentage of retirees hold at least $1 million in retirement savings. EBRI found that 4.7% of households had crossed this threshold in 2022, up from 3.2% in 2019.
This growth suggests that more households are reaching millionaire status. This could possibly be due to market gains, higher contributions, greater earnings or longer careers. However, the percentage of retirees with multimillion-dollar portfolios remains low, reflecting challenges in long-term wealth accumulation.
How Much Do Americans Actually Have Saved for Retirement?
Retirement savings among Americans vary widely, with significant disparities across different age groups. The 2022 Survey of Consumer Finances shows the median household retirement savings—which represents the midpoint of all savers—stood at $87,000.
These are the average and median household retirement savings based on the age of the “reference person” of the household. Keep in mind that these figures comprise retirement account values, not total assets owned by households.
| Age Group | Average Value of Retirement Accounts (2022 dollars) | Median Value of Retirement Accounts (2022 dollars) |
| Under 35 | $49,130 | $18,880 |
| Ages 35 to 44 | $141,520 | $45,000 |
| Ages 45 to 54 | $313,220 | $115,000 |
| Ages 55 to 64 | $537,560 | $185,00 |
| Ages 65 to 74 | $609,230 | $200,000 |
What Is the Average Net Worth of Retirees?
So, what percentage of retirees have $2 million? Net worth statistics for retirees vary significantly between the 65 to 74 age group and those aged 75 and older. The average net worth of households headed by someone between ages 65 and 74 was $1.78 million. For the age 75-plus cohort, the average household net worth was slightly lower at $1.62 million.
These figures reflect the substantial assets held by wealthier retirees, which significantly raise the overall average. However, averages can be misleading because a small percentage of high-net-worth individuals skew the data upward.
When looking at median net worth, which represents the midpoint of all households rather than an inflated average, the numbers are much lower. Households whose reference person is between ages 65 and 74 have a median net worth of $410,000, while those 75 and older have a median of $334,700. The decline in median net worth for older retirees suggests that many draw down savings over time.
| Age Group | Average Household Net Worth (2022 dollars) | Median Household Net Worth (2022 dollars) |
| Ages 65 to 74 | $1,780,720 | $410,000 |
| Ages 75+ | $1,620,100 | $364,270 |
How to Build a Nest Egg of $2 Million
Reaching a $2 million retirement savings goal requires a combination of consistent saving, strategic investing and time.
One way to achieve this is by contributing regularly to tax-advantaged accounts like a 401(k) or IRA. For example, someone starting at age 30 and investing $1,500 per month with a 7% average annual return could reach $2 million by their late 60s.
For those starting later, higher contributions can still achieve the goal. If someone begins at age 45, they would need to save approximately $4,500 per month at a 7% return to reach $2 million by age 65.
This approach may require maxing out 401(k) contributions, catch-up contributions after age 50 and investing in growth assets to maximize returns. Diversifying investments across stocks, bonds and alternative assets can help manage risk while targeting long-term growth. Try to keep expenses low by minimizing fees and avoiding lifestyle inflation. This way, you also allow more money to compound over time.
Example of a $2 Million Nest Egg
A $2 million retirement portfolio can generate significant income, but its longevity depends on factors like withdrawal rates, investment returns and spending habits. Using the 4% rule, a retiree could withdraw $80,000 per year, adjusted for inflation, and potentially make the portfolio last 25 years.
If a retiree opts for a more conservative 3% withdrawal rate, they could withdraw $60,000 annually, reducing the risk of outliving savings. On the other hand, a 5% withdrawal rate would provide $100,000 per year. However, this increases the likelihood of depleting funds sooner.
Investment choices also matter. A well-diversified portfolio with stocks, bonds and annuities could provide income stability while allowing for growth. Retirees relying on dividends and interest might generate $60,000 to $80,000 annually without selling assets. Delaying Social Security and using tax-efficient withdrawal strategies can further stretch savings.
Bottom Line
Accumulating $2 million for retirement is rare but not unattainable for those who save consistently and invest wisely over time. While only a small percentage of retirees reach this milestone, many rely on more modest savings, pensions and Social Security. Net worth and retirement savings vary widely, with wealth concentrated among a smaller group of retirees. Those aiming for a multimillion-dollar portfolio benefit from starting early or contributing aggressively later in life.
Retirement Planning Tips
- A financial advisor can recommend different savings strategies to help you reach your retirement goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- SmartAsset’s Social Security calculator can help you estimate future monthly government benefits.
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