The New Retirement Math: Is $465K Really ‘Rich’ Enough To Keep You in Your Home in Retirement?

Adequately saving for retirement has become a significant struggle in the last few years.

On April 30, President Donald Trump signed an executive order aimed at increasing retirement savings access for Americans not currently covered by a 401(k) or other workplace retirement plans.

He proclaimed that young workers who regularly saved and invested in these private-sector individual retirement accounts could accumulate $465,000 by the time they reach age 65.

“In other words, they’ll be rich,” Trump said during the signing ceremony.

But—would they? Speaking to financial experts, the consensus is that while that figure is more than what most people have saved, given rising housing costs, the looming threat of losing Social Security, and the fact that folks are living so much longer, that assessment is debatable.

The reality of retirement today

The president's figure of $465,000 is based on a specific, saving scenario: a 25-year-old saving $165 per month, receiving a $1,000 annual Federal Saver’s Match, and earning a 6% annual return until age 65.

The average 401(k) investor had a roughly $168,000 account balance at the end of 2025, according to Vanguard Group, while the average IRA balance was about $137,000 at the end of 2025, according to Fidelity Investments.

Meanwhile, roughly 56 million Americans lack access to an employer-sponsored retirement plan at work, according to 2025 research from the Pew Charitable Trusts.

While getting those people invested in their retirement is important, access to accounts isn’t so much the problem: Funding them is. 

“For low-income earners, the reality is that after nondiscretionary expenses are covered, there often just isn't $2,000 sitting around to contribute in the first place,” shares Linda Grizely, a certified financial planner and financial wellness speaker. 

She points out that the president’s executive order has merely pointed people who can “already open an IRA today” in the right direction, which is “a step, but not a game-changer” in getting people set up for retirement.  

“The publicity it is getting in and of itself may be helpful to increase motivation and awareness,” says Bobbi Rebell, a CFP at CardRates.com. “Access is meaningful and can be helpful in closing the gap.”

For argument's sake, let’s say a young person could manage to put $165 away. It’s important to note that nearly $155,000 of the total $465,000 projection is attributable to the Saver’s Match, according to a White House fact sheet.

But this money is not guaranteed. 

“The Saver's Match came from Biden-era legislation,” explains Grizely. “If eligibility tightens or the match shrinks under a future administration, the math behind it changes significantly. Program eligibility shifts all the time.”

The $465,000 question

For those who have yet to save a cent toward their twilight years, a figure close to half a million dollars sounds tempting—and would be far more than what they could ever reasonably save without help. 

“The number the president cites is more realistic and in most cases simply more than what most people have saved or will have saved by age 65,” says Rebell.

However, when pressed, Americans surveyed have admitted their “magic number” (the number needed to retire comfortably) currently stands at $1.46 million, up from $1.26 million in 2025, according to Northwestern Mutual's 2026 Planning & Progress Study.

Much of this has to do with the fact that prices across the board, whether they be mortgages, gas, or groceries, continue to be on the rise—not to mention life expectancy.

Today, a 65-year-old has an average life expectancy of 86, and a 65-year-old couple has a 64% chance that at least one partner will live beyond 90.

So, which number is truly realistic? 

“Honestly, any number is misleading as a blanket statement,” says Grizely. “The number that’s enough depends heavily on where you live, what your lifestyle is, and what healthcare costs will be in retirement, including if there is a long-term-care need. Someone retiring in rural Mississippi has a very different financial picture than someone in Southern California.” 

And that financial picture becomes very different when you’re a homeowner. In the last five years, the cost of homeownership has jumped 26%. For those without retirement savings, Social Security is the only lifeline to keeping their homes. 

But as of now, Social Security alone is enough to cover the living expenses in only 10 states, according to the Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index. Everywhere else, retirees face shortfalls as great as thousands of dollars per year.

Plus, there is the added concern that Social Security will run out by 2032. 

Because of that, having an individual retirement plan is more crucial than ever, and understanding your personal finances fully is the only way to know how much will make you “rich” in retirement. 

But no one can argue that having more wouldn’t hurt. 

“Calling $465,000 ‘rich’ concerns me because it gives people a false sense of confidence in what they really need,” says Grizely.  

“The $1.5 million figure from consumers is closer to what I see in real planning conversations.”