The Surprising Number of People Who Reach $1 Million in Retirement Savings

“According to the most recent figures from the U.S. Federal Reserve’s Survey of Consumer Finances, only about 2.5% of all Americans actually have $1 million or more saved in their retirement accounts.”

Horrible.

But how does the Survey define “retirement accounts”?

“The U.S. Federal Reserve’s Survey of Consumer Finances (SCF) defines a “retirement account” as a type of savings account specifically set up for retirement purposes. This includes various types of accounts that individuals may use to save for their retirement years.”

This means IRA and 401(k) accounts and accounts specifically marked as “retirement.”

Accounts not typically included in the retirement account category are standard savings accounts, checking accounts, or other general investment accounts not specifically designated for retirement.

All other assets including bank savings, bonds, stock market investments, real estate owned, pension income, life insurance policies – are ignored in this survey. When those assets are included, the actual total is about 12%. Then, to the assets must be added Social Security and pension income – which leads to the surprising finding that about 85% of retirees say they are living “okay financially” (see Personal Finance: Most American retirees doing “okay financially” – Coldstreams)

The above story was written by Peter Gratton, Ph.D. in philosophy. A global elite, he has lectured all over the world and teaches “critical thinking”. Yet his story demonstrates a lack of critical thinking.

Leaving out the definition of “retirement account” is journalistic malpractice – but it helps to up the doomerism quotient of the story, which is good for click bait.