from
https://www.benzinga.com/money/retire-5mil-nest-egg?utm_campaign=partner_feed&utm_source=yahooFinance&utm_medium=partner_feed&utm_content=site&nid=41320015

Can You Guess How Many Retire With A $5 Million Nest Egg?
In the realm of retirement savings, only a select few in the United
States achieve the milestone of a $5 million nest egg.

Data from the Employee Benefit Research Institute, based on the Federal
Reserve’s Survey of Consumer Finances, reveals that a mere 0.1% of
retirees manage to accumulate over $5 million in their retirement
accounts, whereas only 3.2% amass over $1 million. SmartAsset's free
tool matches you with up to 3 financial advisors that serve your area in
minutes that can help you be part of this 3%.

A look at those with around $5 million in savings, as reported by the
Wall Street Journal, shows that such retirees often did not anticipate
reaching such financial heights. They were consistent in their savings
efforts from early in their careers, yet their lifestyles remained
modest. Many continue to work part-time, forego frequent new clothing
purchases, and, while they do splurge on global travel, they share the
same concerns about health and family as other older Americans.

Meanwhile, Northwestern Mutual’s research indicates that Americans
believe they need around $1.46 million to retire comfortably. Yet, the
median retirement savings account balance paints a grimmer picture,
standing at only $87,000, according to the latest figures from the
Federal Reserve's Survey of Consumer Finances. Here’s how these figures
breakdown by age group:

—Under 35: $18,880

—35-44: $45,000

—45-54: $115,000

—55-64: $185,000

—65-74: $200,000

—75 or older: $130,000

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While the average balance across all families is higher at $333,940,
this number is skewed upward by the wealthiest households. Besides
retirement accounts, many retirees also have substantial amounts held in
regular savings, brokerage accounts, and investment properties.

The equity in a retiree’s home also significantly contributes to their
financial security. In 2021, home equity accounted for a median of 45%
of the total net worth of U.S. homeowners, indicating a significant
portion of an average person’s wealth comes from their primary residence.

The picture of American retirees’ financial health is thus more nuanced
than it appears. Financial planners advise considering all assets and
net worth to fully assess retirement readiness, rather than focusing
solely on retirement account balances.

Although a $5 million nest egg is rare, achieving a comfortable
retirement is still within reach. By consulting with a financial
advisor, you can develop a tailored plan to meet your retirement goals
based on your financial situation and lifestyle aspirations. A financial
advisor can provide valuable insights and strategies to help you
maximize your savings and ensure financial security for your retirement
years.

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*Jeannine Mancini has written about personal finance and investment for
the past 13 years in a variety of publications, including Zacks, The
Nest and eHow. She is not a licensed financial adviser and the content
herein is for information purposes only and is not, and does not
constitute or intend to constitute, investment advice or any investment
service. While Mancini believes that the information contained herein is
reliable and derived from reliable sources, there is no representation,
warranty or undertaking, stated or implied, as to the accuracy or
completeness of the information.