In the United States, the average household net worth is $1,063,700, while the average net worth among 65- to 74-year-olds is $1,794,600. If this seems far higher than you expect, it’s because wealthy people drive up the averages. The overall mediannet worth is much lower: $192,900 overall.
If you want a comfortable retirement, you may need to be closer to the average than the median, at least according to many Americans. In 2026, U.S. adults said they believe they need $1.46 million to retire comfortably.
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Let’s pretend, for example, that Steve always believed that he’d be in great financial shape once he saved a million — but now he’s 64, has $900,000 saved, and he’s hearing warnings everywhere that $1 million is no longer good enough.
The reality is, his $900,000 nest egg would provide an income of roughly $36,000 per year, under the 4% rule. That’s not exactly a fortune. So, should Steve be worried and put off retirement for a few more years to grow his nest egg, or is he good to retire now and start enjoying his later years?
Whose retirement is Steve trying to plan for?
Steve isn’t the only one worried about whether $1 million is a reasonable sum. Surprisingly, most millionaires don’t even think they’re well off. Only 36% of people with $1 million in investable assets define themselves as “wealthy.”
But Steve shouldn’t let dire warnings that $1 million isn’t enough for retirement scare him, because whether that amount is sufficient or not depends on his individual circumstances.
“The first thing I ask is whether someone is trying to live their retirement or someone else’s, because $1 million could be a completely different number to different people,” Christopher Walsh, a financial advisor at Capital Choice Financial Group, told Moneywise.
Walsh explained that, while people in expensive areas like California or New York may find $1 million insufficient, those in the Great Plains or Midwest may be comfortable with a much smaller nest egg.
“It also depends on lifestyle,” he added. “Are you trying to take several vacations a year, or are you simple and you just want to work on things around the house?”
