No one dreams of just barely scraping by in retirement. You want freedom, comfort, and the ability to enjoy the life you’ve worked hard for—whether that means traveling the world, spoiling the grandkids, or simply relaxing without worrying about bills. But here’s the million-dollar question: Are you saving enough to retire richer than 90% of people?
You might be closer than you think.
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Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.
According to The Motley Fool’s analysis of Federal Reserve data, the average retirement savings for the top 10% of Americans (those in the 90th to 100th percentile) in 2022 was $1,296,683. This number might not seem jaw-dropping at first, but when you consider that the median retirement savings for households is just $87,000, it puts things into perspective.
Here’s how it breaks down:
90th Percentile: $463,000
95th Percentile: $923,000
99th Percentile: $2,630,000
These numbers aren’t just stats—they’re a reality check. They show what the wealthiest Americans have tucked away to secure their futures. But they also highlight something bigger: the growing gap in retirement readiness.
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The rise in retirement savings among the top 10% didn’t happen overnight. Check out the growth over the years:
1989: $261,816
2010: $876,353
2022: $1,296,683
That’s nearly a 5x increase since 1989. What’s driving this? A mix of factors—higher incomes, savvy investing, compound interest, and yes, the increasing wealth gap. The rich aren’t just getting richer; they’re getting retirement-ready faster than everyone else.
Don’t let these numbers discourage you if you’re in the top 10% just yet. Instead, use them as motivation. Here’s how to get on track (or stay there):
Start Early, Save Consistently: The earlier you start, the more time compound interest has to work its magic.
Max Out Contributions: If you’ve got access to a 401(k) with employer matching, take full advantage. It’s essentially free money.
Diversify Investments: Don’t put all your eggs in one basket. Spread your investments across stocks, bonds, and other assets.
Reassess Regularly: Life changes—so should your retirement strategy. Check in on your savings plan at least once a year.
See Also: Many are using retirement income calculators to check if they’re on pace —here’s a breakdown on what’s behind this formula.
It’s important to remember that these figures reflect the upper echelons of retirement savers. They’re not a one-size-fits-all goal. What matters most is having enough to support your lifestyle in retirement, not someone else’s.
If you’re unsure where you stand—or how to improve your retirement game—consider consulting a financial advisor. They can help you set realistic goals, optimize your investments, and creat