How Many Americans Actually Retire With a Million Bucks?

[SunnyVibes]

That is the title of an article on Yahoo finance which provides some answers to that question.

You may be surprised to learn that only 10% of retirees have over a million dollars in savings. Additionally, the average retirement savings by age:

• $426,000 for those aged 65 to 74
• $357,000 for those aged 75 and older

These numbers are very concerning. What are investors doing wrong that causes this shortfall for so many people? In my view, the number one cause of not saving enough for retirement is not having a budget that keeps spending below income. This takes discipline and requires a person to delay large purchases until the budget allows. That is hard for many to do.

If the retiree has been diligent in investing in the stock market over their lifetime but still comes up short, it is likely because they did not follow a long term buy and hold strategy with broad based USA stock ETF's. The temptation to try to time the market cycles by selling when things are looking bad and trying to buy back later is just too great for many to resist. Nobody can time the market consistently.

So congrats to any of you holding more than that.


If you look at the median (which is a fair way), the numbers are like this

Average retirement savings balance by age
Age group Average retirement savings
35-44 $141,520
45-54 $313,220
55-64 $537,560
65-74 $609,230

 

[whttgr]

My dad just retired this last year and I was surprised to find out he actually does have ~1 Mil in retirement. Go dad!

 

[SunnyVibes]

My dad just retired this last year and I was surprised to find out he actually does have ~1 Mil in retirement. Go dad!

Your dad is very well off.