40% Think They Will Have $1m, Less Than 1% Do.

There are often serious disconnects in thinking about financial hopes and financial realities. Nowhere is this more apparent than in the realm of retirement. I would know - I wrote a book entirely about it!

CNBC recently put out an article that surveyed people and found that 40% of Americans plan to retire with $1 million or more saved.

Given all of the data I have studied I was mystified by the extremely high amount (40%) that feels that is within reach. 

$1 million has long served as a placeholder target yet the article points out the obvious -  it isn’t what it used to be, but all of us would take it.

Perhaps part of the equation is home equity or some other asset that is in the equation but I am concerned with savings since that is the basis of income for those that hope to have $1 million and be able to retire.

So, an exploration began based on the question, “How many 401(k) and IRA (Individual Retirement Arrangement) millionaires are there in the US?”

I know it is not many and when I ask people what percent of people are in this category they say 20%, 5% or 15%. Shockingly, it is less than 1 million adults out of approximately 250 million. It is one-third of 1 percent ( 0.34%) have $1 million saved in retirement accounts.

For me, that is a discrepancy worth considering - the difference between 40% and less than 1% - and part of this multipart problem of retirement that we face.

Here is a link to the article citing the number of retirement millionaires.

https://fortune.com/2024/08/28/fidelity-401k-ira-millionaires-record-q2/

Here is a link to the article that from CNBC.

https://apple.news/ABRXJ10GeQ5up6UBuvWipJA

As always, if you come across a financially related article you’d like to send my way please do! 

Best place to send them is to me.

More next time!

Jonathan