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If you’re planning to retire, you probably have a goal of saving money – and most Americans believe that the “magic number” they need to be comfortable is $1.26 million, according to research by Northwestern Mutual (1).
But retirement is many things, not a goal, and the meaning of well-being is influenced by many different factors.
Comparing your number to the actual income of seniors in retirement should give you an idea of how realistic your long-term financial plan is and what kind of lifestyle you can expect in your golden years.
A $1.26 million retirement nest egg may sound impressive — but it’s rare.
A Congressional Research Service analysis of 2022 Federal Reserve data found that only 54.3% of US households have retirement accounts. And of those, only 4.6% had assets over $1 million (2).
It’s no wonder that many retirees feel uncomfortable with their finances. Only two in five retirees believe they have enough money for retirement, according to Schroders 2025 US (3) Retirement Survey.
Meanwhile, 62% admit they don’t know how long their money will last.
Here’s how wealth breaks down for households headed by people ages 65 to 69, based on the latest Federal Reserve Survey of Consumer Finances (4) — and what you can do to strengthen your retirement planning.
Seniors earning less than $69,500 fall in the bottom 25% of retirees. This group is particularly vulnerable to financial crisis and relies heavily on social security programs such as Social Security and Medicare.
If you are nearing retirement below this number, it may be a good idea to take a closer look at your finances. Consider looking for more money, finding other ways to save money, or even delaying retirement so you don’t take too much risk in your senior years.
The first step to understanding your financial situation is to monitor where your money is going on a regular basis.
To keep yourself on track, you might consider reviewing your budgeting process with tools like Monarch Money.
This way, you can see any unexpected charges, such as unwanted subscriptions, quickly and without limitation. You can also get regular notifications about upcoming payments, which allows you to stay on top of your bills and reduce the chances of missing a payment or incurring late fees.
Even better, if you sign up now, you can get a free seven-day trial and 50% off your subscription for the first year with the code WISE50. That way, you can see if Monarch Money works for you before you make a long-term commitment.
After you have worked out your budget, the next step is to reduce recurring expenses. Insurance rates are a good place to start – especially if you haven’t checked your rates in a while.
Car insurance premiums rose 55% between March 2020 and 2025, according to data from the Bureau of Labor Statistics analyzed by NPR (5). Home insurance premiums, on the other hand, are up 46% from 2021, according to data from Insurify (6).
There is a silver lining – you can reduce the cost of insurance by comparing rates from different insurers and choosing the best offer. And it’s completely free.
You can shop around for home insurance quotes from reputable insurers near you at OfficialHomeInsurance.com. On average, you can save up to $482 if you choose the best possible offer.
For those looking to switch car insurance carriers, platforms like Insurify can help. You can save up to $1,100 in as little as three minutes by comparing quotes and choosing the best deal available.
The median income for these households is $394,000, according to the Federal Reserve. If your wealth is less than this number, about half of the households of adults in this age group are richer than you.
This group does not necessarily have financial problems. However, this is far from a comfortable retirement. Seniors in this bracket may be forced to use a strict budget, cutting costs where possible.
If you’re already locked into a budget plan, it’s time to start thinking about saving any free change you can – especially if you’re in retirement age.
Another way to go a little further in time is to use Acorns to save while you spend. Every time you make a purchase with a linked credit or debit card, Acorns automatically rounds up your cash back to the nearest dollar, then puts your balance back into a low-risk investment for you.
The best part? When you sign up for a recurring deposit, Acorns offers a $20 bonus investment.
Read more: I’m almost 50 and have no retirement savings. Is it too late?
Adults with incomes that place them between the 50th and 75th percentiles can be described as middle class. This means access to a comfortable rest.
But with increasing economic uncertainty, protecting your wealth should be a top priority. Investing in safe assets like gold can help protect your portfolio against market risks and hedge against inflation.
Another way to invest is through a gold IRA with the help of Priority Gold. This way, you can invest in gold and other precious metals in physical form while still providing the important tax benefits of an IRA.
If you opt for their platinum package, you can get free account setup, shipping and storage for up to five years.
You can find a free informational guide that includes details on how to earn up to $10,000 in free silver on qualifying purchases. Just remember that gold is best used as one part of your work.
Reaching the top can be the first hurdle to achieving a retirement life that matches your peak earning years.
If you plan to retire with a high salary, the gates of this class should be accessible. However, you still need strong savings and long-term sustainable investments to get there.
Diversification can help, because it ensures that you are not investing too much in one asset. There are many ways to do this besides gold, including investing in real estate.
Backed by world-class investors such as Jeff Bezos, Arrived offers you the opportunity to purchase SEC-qualified investment units in residential properties and vacation rentals throughout the US.
And any rental income generated is distributed to you each month, while the property fee is paid as capital gains at the end of the investment term. This way, you can sit back and collect income while Arrived does all the legwork.
Plus, for a limited time, when you open an account and deposit $1,000 or more, Arrived will credit your account with a 1% match.
Only the top 10% of households between the ages of 65 and 69 have incomes above $2.9 million. These wealthy retirees are often bankers, lawyers, C-suite executives or business owners who tend to live a financially free lifestyle.
This is also when the real threat to lifestyles can take hold. In fact, now that you are on the verge of success, why not give up the luxury?
But living below your means now can pay dividends later. If you’ve maxed out your 401(k)s and IRAs, consider investing in real estate platforms to diversify your career while earning income.
Founded by former Goldman Sachs investors, the mogul selects the top 1% of single-family rental properties nationwide for you. This gives you access to monthly rental income, real-time appreciation, and tax benefits – without the need for heavy payments or 3 a.m. calls.
Mogul has delivered an annual dividend of 18.8%, while its cash-to-cash yield is 10-12% annually. Offerings usually sell in less than three hours, and investments typically range from $15,000 to $40,000 per property.
Getting started is a quick and easy process. Just sign up, check available properties, verify your details, and start investing like a mogul.
Only the top 1% in this bracket have more than $21.7 million. This is a very wealthy group that most Americans can only dream of being a part of.
If you fall into this category, your retirement plan is probably looking a bit odd. You may not be focused on financial planning but more focused on asset allocation, tax optimization and estate planning.
It’s no wonder that super-rich people understand the importance of diversity and are increasingly reaching for more assets like this. But there is one asset in particular that is popular around the world and has a relatively weak correlation with the S&P 500. It also lacks structure, with a tendency to appreciate in value over time.
The treasure in question? Modern art.
Until now, owning art was a complex process involving a network of dealers.
Now, Masterworks can help everyday investors find rare pieces of works by Banksy, Basquiat, Picasso, and more.
From the 27th exit until now, Masterworks investors have received annual returns of 14.6%, 17.6%, and 17.8%, among assets held for longer than a year.
The latest Masterworks sale highlights something else – it’s going out faster than the usual holding time. Just 17 days after buying Elizabeth Peyton’s painting for $1.16 million, it sold for $1.5 million — earning a 22.9% return for investors early enough to buy.
Moneywise readers can get early access to the art exchange: Skip the waiting list here.
Note that past performance is not indicative of future earnings. Investing involves risk. Check out the highlights of Act A at Masterworks.com/cd
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Northwest Partnership (1); Congressional Research Service (2), Schroders Global (3); Federal Reserve (4); NPR (5); Insurify (6)
This article provides information only and should not be considered advice. Offered without warranty of any kind.
