How Many Americans Have Banked a Cool $5 Million for 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. That trajectory has accelerated: the estimate climbed roughly 4% in 2024, 5% in 2025, and 7.5% this year. One concrete sign of the pressure is Medicare Part B, whose standard monthly premium jumped to $202.90 for 2026, a 9.7% increase. Yet 54% of pre-retirees still incorrectly expect Medicare to cover all of their healthcare expenses, according to Fidelity’s research, a misconception that makes thoughtful 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.

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 opportunities available before retirement.

This piece looks at the retirement overachievers who have stashed away at least $5 million. As always, a financial advisor can help you find a realistic target and a credible timeline to reach it.

How many Americans have managed to save $5 million?

Data from the Employee Benefit Research Institute, drawing on the Federal Reserve’s Survey of Consumer Finances, indicates that only about 0.1% of Americans have over $5 million saved for retirement. In a room of 1,000 people, just one would cross that threshold. A 2024 AARP survey found that 20% of adults aged 50 and older have no retirement savings at all, and 61% worry they will not have enough money to support them through retirement. Those numbers make the $5 million club all the more rarefied.

The gap between typical savers and those at the very top is stark. Fidelity’s Q2 2026 Retirement Analysis, covering more than 25.8 million 401(k) participants, shows the average balance hit a record $155,800, the strongest quarterly gain since Q4 2020 and a 13.1% increase from a year earlier. The average IRA balance also reached a record $144,523, up 10% year-over-year, while the average 403(b) balance climbed to $145,000. The number of Fidelity 401(k) participants holding a million-dollar balance surged to a record 769,000 in Q2 2026, up 30% from a year earlier and 19% from Q1 alone, a milestone that underscores how compounding and consistent contributions can move the needle over time.

Record headline figures, however, sit alongside a less comfortable trend. Outstanding 401(k) loans reached 19.5% of participants in Q2 2026, up from 19.2% at the end of Q1, as more workers tapped their plans to cover everyday expenses. That divergence between balance records and rising loan use captures the two-speed reality of American retirement: a cohort of committed, long-tenured savers building serious wealth while a growing share of workers borrow from their future selves to manage today.

Long-term savers fare considerably better than the overall averages. Participants who have contributed to a Fidelity 401(k) with the same employer for at least five consecutive years held an average balance of $304,200 at the end of 2025. The combined employee and employer savings rate held at a record 14.4% for the second consecutive quarter in Q2 2026, with more than 81% of 401(k) participants capturing their employer’s full matching contribution. Among the millionaire cohort specifically, the average total savings rate reached 25.8%, a figure that reflects decades of disciplined deferral rather than a lucky market run.

Women are also narrowing the retirement savings gap. Women who participated continuously in their 401(k) for 15 or more years held an average balance of $508,700 at the end of 2025, having crossed the $500,000 threshold for the first time just the prior quarter. By Q2 2026, women continuously participating for at least five years reached an average balance of $273,400. The backdrop is significant: a record wave of baby boomers is reaching traditional retirement age, a demographic trend some researchers call “peak 65,” bringing renewed urgency to these planning conversations. Even so, the $5 million mark remains a rare milestone.

For a high-income earner committed to a comfortable life in an expensive city, the $5 million club may be the right target. For those who find full retirement premature, the growing trend of phased retirement, where workers shift into part-time consulting or passion projects, can stretch a smaller nest egg further while keeping income flowing.

Keeping emotions in check through market cycles

Harnessing the power of compounding does not require a seasoned trader’s skill set, but it does demand a long-term perspective and discipline about portfolio construction. Many investors now view the traditional 60/40 stock-and-bond split as outdated, gravitating instead toward alternative assets or growth-oriented strategies to build the kind of wealth that reaches seven figures. The Q2 2026 Fidelity data offer a useful illustration: after a turbulent first quarter triggered by geopolitical tensions pushed the average 401(k) balance down roughly 4%, savers who stayed the course saw balances recover sharply as markets rebounded, with the S&P 500 gaining roughly 15% in Q2 alone.

Market conditions shift, sometimes violently, and the rising share of workers taking 401(k) loans shows the strain that volatility and daily expenses can put on even disciplined savers. The ability to stay skeptical during euphoric bull runs and steady during brutal downturns is one of the most undervalued skills in retirement planning. The greatest risk for anyone targeting $5 million is taking on too much risk in pursuit of it, which can set a retirement back by years or even a decade. A financial advisor can help calibrate the right level of exposure for your timeline and temperament.

The bottom line

For the majority of Americans, saving $5 million is neither achievable nor necessary. Many savers are redefining retirement itself, embracing flexible work arrangements and phased exits that reduce the total capital required. The $5 million target is less a survival threshold than a fund for total financial freedom, including the freedom to never work again on someone else’s terms.

A financial advisor can help you determine whether $5 million is a realistic goal or whether a smaller, well-constructed plan gets you to the same place. The core principles hold at any income level: contribute consistently, capture every available employer match, and take full advantage of contribution limit increases like the 2026 super catch-up for workers aged 60 to 63.

Editor’s note: This article was updated to add Fidelity’s finding that 19.5% of 401(k) participants carried outstanding loans in Q2 2026, the acceleration in the healthcare cost estimate (roughly 4% in 2024, 5% in 2025, and 7.5% in 2026), the Medicare Part B premium increase to $202.90 for 2026, and the AARP survey finding that 61% of adults 50 and older worry they will not have enough money in retirement.

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