For decades, saving $1 million was considered the ultimate retirement goal, a milestone that promised comfort, security, and freedom after a lifetime of work.
But lately, many Americans are questioning whether that number still holds up.
Rising living costs, longer lifespans, and soaring health care expenses are forcing a reexamination of what it really takes to retire comfortably.
Ramit Sethi Says $1M Is Not the Dream
Financial expert and author Ramit Sethi made headlines when he called out the old advice to work for 40 years and retire with $1 million.
“Get a job at an industrial company and work there for 40 years so that I can retire with $1M in the bank,” Sethi told Moneywise. “I was like $1 million? That’s it?! No, thank you!”
Sethi argues that focusing on a fixed number misses the point. Instead of grinding for decades just to scrape by in retirement, he encourages people to enjoy their money throughout their lives while still saving wisely.
He points out that the average retirement age has risen to 61 and that waiting until then to finally enjoy life may not be the ideal strategy.
Most Americans Don’t Get Close
Still, for many Americans, hitting $1 million remains a distant dream.
According to Federal Reserve data, households led by people aged 45 to 54 have an average retirement balance of just over $300,000.
Only a small fraction of retirees ever reach the million-dollar mark.
That reality came through clearly in a lively Reddit discussion in r/MiddleClassFinance, where a user asked: “Is $1 million still a good retirement goal? People here keep saying it’s not enough. Are they out of touch?”
The question sparked hundreds of responses. The overwhelming consensus: it depends.
The 4% Rule and Realistic Expectations
“Personal finance is personal. Can you live on $40,000 a year in the year you plan to retire and onward? If so, $1,000,000 is enough,” wrote one person.
Others warned that such calculations often leave out one of the biggest threats to retirement security, medical and long-term care costs.
One person shared a family story that drove the point home.
“My grandmother passed away this summer after a 6-year, slow decline from a neurological disease. At one point, they were up to $21K per month [for care]. They moved her to another facility that was a better fit and more affordable at $14K/month, but still…!”
Where You Live Matters
Plenty of people agreed that $1 million might work today for those already near retirement, especially if they own their home and collect Social Security.
“1M might be enough if you have paid off a house and are retiring today,” one person wrote. “But if your goal is to save 1M so you can retire in 30 years, it probably won’t cut it.”
Social Security and pensions play a major role in how far savings can go.
One person noted that for retirees receiving around $4,100 per month in Social Security benefits plus spousal payments, “Those with a $M in retirement are probably OK.”
Others echoed that sentiment, emphasizing that $1 million combined with stable benefits can provide a comfortable middle-class lifestyle, especially in a low-cost area.
Location also came up repeatedly. “High-cost-of-living areas, $1M is probably barely a drop in the bucket,” one person wrote. “Low-cost-of-living areas, $1M could outlive the person.”
Moving the Goalposts
For some, $1 million isn’t even close to enough.
“My goalpost has moved. Ten years ago it was my goal. Now it’s looking like $3 million,” another person admitted.
Others threw out even bigger targets, $4 million to feel secure, $5 million to not worry, and up to $10 million for those wanting a luxurious lifestyle.
Still, there were voices of perspective in the mix. “The mass majority of people ‘retire’ without even a pot to piss in,” one person said. “Anything north of zero is a good thing.”
Another added, “Considering I always read that half of Americans don’t even have $500 saved for an emergency, you are blessed if you save $1M by old age.”
Don’t Chase a Number, Know Your Needs
Several users reminded readers that retirement planning shouldn’t be about chasing a number.
“Chasing a number is irrelevant. What are your actual expenses?” one asked.
Another put it simply: “Stop chasing a number. Figure out what makes sense on a monthly basis for your needs.”
Many in the thread referenced the well-known “4% rule,” which suggests withdrawing 4% of retirement savings each year.
Under that rule, $1 million translates to about $40,000 per year before taxes.
Add in Social Security, and that could mean $60,000 or more for a couple , comfortable in many parts of the country, tight in others.
Real Retirees Share What Works
A 74-year-old commenter offered a real-world example.
“My home is valued at just about $1 million and paid off, and have just over $1 million in cash holdings. Social Security for my wife and I more than covers all necessary costs, including home maintenance, insurance, auto, utilities, and food. We are very comfortable, not wealthy, but have enough to enjoy retirement, travel some, and spend time with friends and family.”
While $1 million may not stretch as far as it once did, most commenters agreed it still represents a strong foundation.
The key, they said, is pairing it with smart financial habits: paying off debt, saving early, investing consistently, and keeping expenses under control.
As one person advised: “Let time work for you. The important thing is to save something now and to be consistent with it. It will feel slow but once you start hitting milestones like the first $10K, the first $50K, the first $100K, it actually gets easier because the money grows from compound interest.”
So, Is $1M Enough?
In the end, whether $1 million is enough comes down to what kind of retirement you want and how much it will cost to sustain it.
For some, it remains a realistic and meaningful goal. For others, it’s just the beginning.
Maybe the better question isn’t whether $1 million is enough, but whether you have a clear plan to make whatever number you reach work for you, without waiting until 65 to start living a life that feels rich.