Who Actually Retires With $2.5 Million? The Number Is Shockingly Small — Are You On Track Or Falling Behind?

A million used to be the magic number for retirement. Then inflation, longer lifespans, and rising healthcare costs moved the goalposts. These days, plenty of people are aiming for $2 million — or even $2.5 million — just to feel secure. But while that might seem like the new benchmark, the reality is that very few people actually reach it.

According to the Employee Benefit Research Institute’s analysis of Federal Reserve data, just 1.8% of U.S. households have at least $2 million in retirement savings. And when you push that to $2.5 million, the number shrinks even further — somewhere between the 1.8% with $2 million and the 0.8% with $3 million.

In other words, if you’re chasing $2.5 million, you’re entering rare territory.

Don’t Miss:

For context, the median retirement savings across all households is $87,000. The average is about $333,940, skewed higher by wealthier households. Even among retirees aged 65 and up, the average balance is just $573,624 — and the median is still far below seven figures.

So why is $2.5 million such a tough milestone to hit?

It’s not just about financial literacy or discipline. Hitting that number usually requires starting early, saving consistently, and investing aggressively for decades — all while earning enough to cover rising living costs. That kind of financial runway isn’t available to most Americans.

Still, what does $2.5 million really mean for your retirement?

Quite a bit, actually. Using the common 4% rule, $2.5 million could generate $100,000 per year — not including Social Security or other income. That’s enough to cover a comfortable lifestyle in most of the U.S., even with room for healthcare, housing, and the occasional splurge.

Trending: The secret weapon in billionaire investor portfolios that you almost certainly don’t own yet. See which asset class has outpaced the S&P 500 (1995-2024) – and with near-zero correlation.

It also puts you in an elite group. While the number might not feel extravagant in 2025 terms, the truth is very few retirees reach it — and those who do sit well inside the top 2% of retirement savers.

If you’re retiring at 65 and plan to live another 25 to 30 years, $2.5 million can stretch far — but only if you manage it carefully. At $100,000 per year, you’re right on pace with the 4% rule. Add in Social Security — which averages around $1,900 per month or roughly $23,000 annually — and you’re looking at over $120,000 in income. That’s more than enough to cover essentials and extras in most areas, even factoring in healthcare and inflation.