Over half of Americans have retirement accounts — but not even 3% of them have hit the $1 million mark. Here’s what’s holding them back

The latest data from the Federal Reserve’s Survey of Consumer Finances shows just 54.3% of households have a 401(k) or individual retirement account (IRA).

And among those who do, less than 10% of households in each age group had $1 million or more saved in those accounts, according to a February 2025 Congressional Research Service (CRS) analysis of the same data. The highest rate was for households led by someone aged 55 to 64, the group closest to retirement, and even there, only 9.2% had crossed the million-dollar mark.

That figure is lower for every other age group — here’s what’s likely behind those troubling figures.

The 45% the headline leaves out

Before you ask why people aren’t hitting $1 million, consider who isn’t even saving at all.

More than 45% of U.S. households — roughly 60 million of the 131.3 million counted in the 2022 survey — have no 401(k) or IRA. Some of those households may still get a traditional pension from an employer, but most don’t control any dedicated retirement account. And access to even that much depends on income — higher earners are much more likely to have a plan than lower earners, because they earn more money.

Another CRS analysis of Fed data found that 91.1% of households earning $150,000 or more had money in a 401(k), IRA, or similar account, while just 13.2% of households earning under $30,000 did. Retirement savings in the U.S. is built around employer-sponsored plans, so where someone works and how much they earn make a huge difference.

Race is also a factor. In the 2022 survey, 61.7% of white households had retirement accounts, compared with about 34.8% of Black households and 27.5% of Hispanic households. And this isn’t about personal discipline. The races with lower retirement accounts show the effect of lower wages, and less access to employer plans.

Why the median balance stays stuck

For the 54.3% who are saving, the distance between $87,000 and $1 million is still huge.

Among all households headed by someone 55 to 64, the median retirement balance was only about $10,000 in 2022, once you include the many households with nothing saved at all. That’s the median for America’s near-retirement households in total, and not just for people who already have accounts.

The annual contribution limits are high, but they matter most for people with plenty of room in their budget. The 2026 standard 401(k) limit is $24,500, with a $8,000 catch-up if they’re 50 or older for a total of $32,500. Those between 60 and 63 qualify for an $11,250 super catch-up under the SECURE 2.0 Act, to raise their limit to $35,750.

But these limits only work for people with enough income to approach them. For most Americans, rent, childcare and debt comes first, and that leaves less cash to invest.

Building that kind of balance takes time and steady contributions, but that’s a tough combination for anyone who starts late or earns less.

What the research shows about who gets there

Fidelity Investments manages retirement plans for approximately 25 million workers. As of June 2024, about 497,000 of them had at least $1 million in their 401(k)s — roughly 2% of Fidelity’s total participant base.

That didn’t happen because of one lucky market year. Michael Shamrell, vice president of workplace thought leadership at Fidelity, told CBS MoneyWatch in August 2024 that the typical millionaire in the plan had been in it for 27 years and had kept saving over time.

“They have seen a lot, and they are a great example of taking a longer-term approach to continuing to save and stay on track,” he said.