18% of U.S. households had $1 million in 2022

Many people aim to retire with $1 million, and it's more common than you might think. A recent survey by the Federal Reserve shows that about 18% of households in the U.S. had a net worth of $1 million or more in 2022. This figure includes all ages, but the number is higher for those nearing retirement. For households headed by individuals aged 50 to 64, over 25% are millionaires. That's over 16 million Americans. While some people achieve millionaire status before age 50, the percentage is much lower. The data suggests that older generations have advantages in accumulating wealth. Lower education and housing costs have helped them build their savings. Additionally, investing over time, particularly in assets that appreciate, like stocks, is key to growing wealth. To retire a millionaire, consistent saving and investing are crucial. Paying off high-interest debt should be your first step, as it offers a better return than many investments. If your employer provides a matching 401(k), consider taking advantage of it, even with high fees. Tax-advantaged accounts like IRAs are also great for retirement savings. When it comes to investments, broad-based index funds, like the Vanguard S&P 500 ETF, can offer good returns at low costs. Younger individuals benefit from having more time for their investments to grow through compounding. However, those in their 40s or 50s can still reach millionaire status with a focused plan. Overall, retiring as a millionaire is achievable for many Americans.