I’m 46 years old and have finally paid off my student loans — but now I have zero in savings. Do I still have time to retire with a seven-figure nest egg?

Can You Start at 46 and Become a Millionaire?

If you're getting started at 46 and want to have a million saved by 67 (which is your full retirement age for Social Security), you would need to save around $1,302.02 per month if you're starting from scratch and expect to earn a 10% average annual return (which the S&P 500 has consistently earned over time).

But you'll probably want to have a more conservative, balanced and diversified portfolio and not put all your money into U.S. stocks. A common rule of thumb also says you should minus your age from 110 to determine how much of your portfolio should be in stocks. At 46, that would mean around 60% in equities.

In this case, you'd need to save a bit more — $2,083.71 monthly if you expect to earn a 6% average annual return. While that sounds like a lot, it may be within reach once you factor in tax breaks and the help your employer may offer.

These are simple calculations assuming your investing strategy will remain unchanged for two decades. But your asset allocation should shift as you get older and your investment horizon and risk tolerance changes. For a better idea of how you can safely and effectively save for retirement, speak to a financial adviser about what holdings would be right for your portfolio.

If you want to calculate how much you would need to save each month if you start saving at different ages and with different estimated average annual returns, the Savings Goal Calculator at Investor.gov is a useful resource.

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Does the Average Person Realistically Save Enough?

Let's assume you want to start saving with an aggressive 100% stocks portfolio, to see if it's realistic to save that much, let's look at the typical middle-aged American.

Median weekly earnings among 45-to-54-year-olds totaled $1,316 per week in the second quarter of 2024, according to the Bureau of Labor Statistics. That's $68,432 per year.

If you wanted to save $1,302 per month or $15,624 a year, you'd theoretically be looking at investing around 23% of your income. That sounds really hard. In practice, it would likely be much less. Here's why.

Fidelity reports the average 401(k) match is 4% on plans the brokerage firm holds. If you earn the typical salary of $68,432 and your employer offers the standard dollar to dollar match on up to 4% of your salary, they'll provide around $2,737 annually for your retirement if you contribute enough to earn all your matching funds. This means only $12,887 must come out of your pocket to hit your $15,624 target.

You get tax breaks on top of that employer contribution too. If you're single with a $68,432 income, you're probably in the 22% tax bracket. Contributing $12,887 to your 401(k) during the year saves you around $2,835 on your taxes. So, you're looking at actually reducing your take-home pay by a total of just $10,052 a year — or about 15% of your income.

That's a reasonable ask if you've generally been good with money and kept your housing costs to the recommended 25% of your income or less. Now if you have tons of high-interest debt or are living beyond your means, that won't be doable. But, for many people, long-term investing in low-cost index funds and getting serious about retirement savings puts a seven-figure nest egg on the table.

You should strive for it, as you don't want the delay caused by your student debt to mean that your retirement isn't as secure as you deserve.