For many Americans, hitting the $1 million mark may feel like a kind of retirement summit — a tidy, round number that promises comfort and security. But is it a realistic savings goal for someone already in their mid-50s?

Let’s say you’re 55, debt-free, and sitting on $500,000 in a 401(k). You own your home outright, which is valued around $400,000, and you’re contributing 10% of your income toward retirement. You plan to call it quits at 65 with a $1 million nest egg. The question is, can you get there in time?

The short answer: It’s possible, but it will take discipline, strategy, and smart use of the tools available to you in these crucial final years of saving. Here are a few tips for increasing your savings and meeting your retirement goals.

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Let’s get this out of the way first: compared to the average American, this saver is doing exceptionally well.

Empower says the median 401(k) balance for people in their 50s is $253,454 as of September 2025 (1), meaning this person has nearly double that amount. Being debt-free and owning a home outright also puts them miles ahead, since housing costs are often retirees’ single biggest expense.

But whether $1 million is “enough” your retirement depends less on the total balance and more on your desired lifestyle and location.

Plus, it would fall well short of the figure most Americans believe they’ll need to retire comfortably: $1.26 million, according to Northwest Mutual’s latest survey (2).

A general rule of thumb suggests retirees need about 70% to 80% of their pre-retirement income to maintain their standard of living. And the 4% rule assumes you can safely withdraw about 4% of your savings each year without running out of money (3).

Under that rule, a $1 million nest egg would produce about $40,000 annually in retirement income, not including Social Security, which could add another $30,000–$40,000 for the average household.

Combined, that might be enough for a modest lifestyle, especially with no mortgage or debt, but it’s unlikely to fund lavish travel or rising health care costs.

Let’s run the numbers. Assuming a current 401(k) balance of $500,000 and a routine company match, if you contribute 10% of a $100,000 salary (that’s $10,000 per year) and assume a 6% annual return, you’ll have around $1.086 million at age 65 — comfortably above your goal.