A broad look at wealth in the United States can feel impressive at first glance. Headlines love to say that more than 24 million households are worth at least $1 million. That number sounds comforting, especially for anyone thinking about retirement. But it hides a big truth most people miss.

Most of that so-called wealth sits inside primary homes. Houses look great on paper, but they do not pay grocery bills. You cannot easily sell off a bedroom to cover medical costs. Once you strip home equity out of the picture, the story changes fast.

Reports show that the median household net worth without home equity was just $57,900. That number comes from Pew Research. This gap explains why millionaire headlines feel disconnected from everyday life. Real financial security comes from cash and investments you can actually use.

Liquid Wealth Is Rare, Even Before Retirement

Karola / Pexels / When analysts focus only on liquid millionaires, the group shrinks fast. Liquid wealth means investable assets like stocks, bonds, and cash.

It does not include your home and property, which you cannot easily sell.

Henley and Partners estimates that about 6 million Americans qualify as liquid millionaires. That sounds like a lot until you zoom out. It represents roughly 2.2% of adults. In simple terms, only one out of every 45 American adults has $1 million they can actually access.

Liquid wealth gives flexibility. It covers surprise health costs. It smooths market swings. Without it, retirement planning becomes a tightrope walk. For most Americans, that rope is thin.

How Many Retirees Actually Have $1 Million Saved?

When you narrow the focus to retirement accounts like 401(k)s and IRAs, the numbers drop again. Federal Reserve data shows that just 4.7% of Americans have $1 million or more saved in these accounts. That includes workers and retirees combined.

Looking only at retirees makes the picture even starker. Research from the Employee Benefit Research Institute shows that only 3.2% of retirees have over $1 million in retirement accounts. That means more than 96% do not reach that milestone.

People close to retirement do slightly better, but not by much. Among adults aged 55 to 64, about 9.2% have crossed $1 million in retirement savings. That is peak earning and saving time. Still, fewer than one in ten make it.

What Retirement Savings Really Look Like?

Tima / Pexels / For households led by someone aged 65 to 74, the average retirement account balance is about $609,000.

The median is only $200,000. Half of retirees fall below that mark.

For those aged 75 and older, the gap grows wider. The average drops to $462,000. The median sinks to $130,000. These are not comfort numbers for a retirement that can last 20 or 30 years.

These figures explain why Social Security plays such a large role. They also explain why many retirees keep working part-time. Savings alone often cannot carry the load.

On paper, older Americans look wealthy. Households aged 65 to 74 have an average net worth of $1.78 million. Those over 75 average about $1.62 million. These numbers sound reassuring.

The problem is where that money sits. A large share lives in primary residences. Homes do not adjust easily to rising costs. Selling or borrowing against them is slow, expensive, and emotional.

Remember, financial firms often suggest saving ten times your salary by age 67. For many workers, that lands near or above $1 million.

A 2024 report from the Center for Retirement Research found that 39% of working households risk falling short in retirement. That risk is not about luxury spending. It is about maintaining a basic standard of living.