For many Americans, hitting the $1 million mark may feel like a kind of retirement summit — a tidy, round number that promises comfort and security. But is it a realistic savings goal for someone already in their mid-50s?
Let’s say you’re 55, debt-free and sitting on $500,000 in a 401(k). You own your home outright, which is valued around $400,000, and you’re contributing 10% of your income toward retirement. You plan to call it quits at 65 with a $1 million nest egg. The question is, can you get there in time?
The short answer: It’s possible, but it will take discipline, strategy and smart use of the tools available to you in these crucial final years of saving. Here are a few tips for increasing your savings and meeting your retirement goals.
Let’s get this out of the way first: compared to the average American, this saver is doing exceptionally well.
Empower says the median 401(k) balance for people in their 50s is $253,454 as of September 2025 (1), meaning this person has nearly double that amount. Being debt-free and owning a home outright also puts them miles ahead, since housing costs are often retirees’ single biggest expense.
But whether $1 million is “enough” your retirement depends less on the total balance and more on your desired lifestyle and location.
Plus, it would fall well short of the figure most Americans believe they’ll need to retire comfortably: $1.26 million, according to Northwest Mutual’s latest survey (2).
A general rule of thumb suggests retirees need about 70% to 80% of their preretirement income to maintain their standard of living. And the 4% rule assumes you can safely withdraw about 4% of your savings each year without running out of money (3).
Under that rule, a $1 million nest egg would produce about $40,000 annually in retirement income, not including Social Security, which could add another $30,000–$40,000 for the average household.
Combined, that might be enough for a modest lifestyle, especially with no mortgage or debt, but it’s unlikely to fund lavish travel or rising health care costs.
Let’s run the numbers. Assuming a current 401(k) balance of $500,000 and a routine company match, if you contribute 10% of a $100,000 salary (that’s $10,000 per year) and assume a 6% annual return, you’ll have around $1.086 million at age 65 — comfortably above your goal.
But a few small tweaks could bring bigger returns. Increasing your 401(k) contributions from 10% to 15%, for instance (which may be possible considering you have no mortgage payment or credit card debt).
Raising your contributions to 15% and maintaining a 6% return could grow that $500,000 balance to roughly $1.16 million in 10 years. That’s assuming steady employment and consistent market conditions, both of which can be unpredictable, but the math shows the goal is more than within reach.
The key is to take advantage of 401(k) catch-up contributions, which allow workers aged 50 and older to put more toward retirement. In 2026, the IRS will permit up to $32,500 in total for those over 50 making catch-up contributions.
How to get there faster
If you’re serious about doubling your 401(k) in a decade, these strategies can help you stay on track:
Max out retirement accounts
Contribute as much as possible to your 401(k), especially if your employer offers a match. Also consider opening a Roth IRA if you’re eligible; you can add up to $7,500 per year (or $8,000 if you’re over 50) (4), which grows tax-free.
Revisit your investment mix
At 55, it’s tempting to play it safe, but you have 10 years before retirement, which is plenty of time to stay at least moderately aggressive with your investments. A mix of 60% stocks and 40% bonds can still offer solid returns while cushioning against market swings.
Minimize taxes and fees
High fund fees or frequent trading can eat away at your returns. Review your 401(k) options and shift to low-cost index funds where possible.
Avoid lifestyle inflation
With your house paid off, it’s easy to feel financially relaxed. But every dollar you don’t spend is a dollar that can grow for the next 10 years. Direct any raises or windfalls straight into savings.
Build a cash buffer
Having an emergency fund means you won’t need to dip into your 401(k) early, avoiding penalties and lost compounding.
Chris Clark is a Kansas City–based freelance journalist covering personal finance, housing and retirement. A former Associated Press editor and reporter, he writes plainspoken stories that help readers make smarter financial decisions.
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