Americans tend to underestimate their true retirement wealth — but that could leave you working longer than needed When it comes to news stories about how much Americans have saved for retirement, the tone is almost always doom and gloom.
The typical message is that Americans are underprepared for retirement, don’t have enough savings to last and will need to keep working longer — if not indefinitely
Must Read If you look at the data on how much a typical American has saved in their retirement accounts, the numbers show cause for concern. According to Fidelity’s Q1 2026 analysis of retirement savings trends, the average 401(k) balance is $141,000 (1). However, looking at your retirement account balance alone can skew the picture, as some Americans might not be taking their true retirement wealth into account.
Daniel Burnside, finance professor at the University of Rochester’s Simon School of Business, told U.S. News & World Report that “Most people probably do underestimate the assets that they have.” With this in mind, some retirees or older Americans nearing retirement could have extra money that hasn’t yet been factored into their retirement equation. “That could help avoid the dreaded ‘one more year syndrome,’ in which people put off retirement indefinitely to save just a little more,” U.S. News & World Report (2). 401(k) balances in America Of course, looking only at average 401(k) balances does not give the full picture of how prepared Americans are for retirement.