$750K vs. $2M vs. $5M in retirement: Here’s what actually changes for US boomers

In other words, some U.S. boomers are facing a modest retirement with tight budgets, while others are living that multimillionaire lifestyle.

But the jump from $750K to $2 million to $5 million doesn’t just buy more comfort. It changes the actual problems you have to solve. Here’s what shifts at each level, and what to do about it.

$750,000

If your nest egg is worth $750,000, you’re only slightly ahead of the typical boomer. According to Pew, the median net worth of households headed by 58- to 76-year-olds in 2022 was $432,200, in 2024 dollars.

And retiring below the seven-figure club isn’t considered ideal. In fact, most Americans believe they need an average of $1.46 million to retire comfortably in 2026, according to the latest numbers released by Northwestern Mutual. So, retiring with three-quarters of a million dollars isn’t likely to be luxurious.

Nevertheless, a carefully crafted financial plan coupled with a tight budget can make this chapter of your life much more comfortable.

With very little room for error, a robust emergency savings fund could be essential. According to many experts, you’ll probably need at least three to six months of living expenses in cash, preferably parked in a high-yield savings account that can be quickly accessed.

Break in case of emergencies

That’s why a high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s ten times the national deposit savings rate, according to the FDIC’s June report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

$2,000,000

Once you cross $2 million, your biggest concern probably isn’t budgeting, it’s taxes and liquidity.

A major challenge for many people in this wealth class is the fact their home accounts for a big chunk of their fortune.

“For the barely-millionaires, households with a net worth between $1 million and $2 million, the vast majority of that wealth is illiquid,” says a Bloomberg report. “They typically had 66% of their wealth tied up in a primary home and retirement accounts in 2023, an increase of eight percentage points since 2017.”

Making the most of your home

One way to manage this lack of liquidity is to use a Home Equity Line of Credit (HELOC), which is a revolving line of credit that leverages the equity in your home as collateral, so that you can borrow and repay funds as needed — similar to a credit card.

AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.

It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan up-front. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use, and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.

Get some help

At this level of wealth, investing in good and professional financial advice could also be invaluable. Managing withdrawals, minimizing tax exposure and ensuring long-term sustainability often requires greater coordination and strategic planning.

In these cases, working with a financial advisor can help reduce costly mistakes.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

$5,000,000

At $5 million or more, you’re clearly in the ultrawealthy group of retirees. Households with at least $3.8 million in net worth are part of the top 5%, according to SoFi. In this top league, your primary concern likely isn’t budgeting, growth or withdrawal plans — it’s estate planning and diversification.

At this level, you’ll probably start getting access to alternative assets that ordinary investors can’t tap into. From collector’s items to private credit, these exotic asset classes could be an important diversification tool for you.

But there’s still something missing from traditional portfolios.