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Jamie Dimon, who runs the biggest bank in America, said this month that the American dream is “slipping out of reach for too many people.” (1)
Coming from the CEO of JPMorgan Chase, that’s worth noting. I’ve been a CPA since 1981, I’ve owned Money Talks News since 1991, and I’ve watched the arithmetic of a comfortable retirement get harder in real time.
Dimon isn’t just talking feelings. A comfortable retirement now runs an estimated $1.2 million to $1.4 million, while the average household nearing retirement — ages 56 to 64 — has saved about $540,000, and the median is closer to $185,000. (1) Those median balances sit far below what the benchmarks say people need. (2)(3)
He’s also pointing at something bigger: a wave of baby boomers hitting retirement at once, many of them small-business owners with no succession plan. (1)
Here’s the thing, though. “Harder” is not “impossible.” I’ve spent 35+ years watching people with ordinary incomes retire just fine — not because they timed the market, but because they did a handful of unglamorous things on purpose. Here are six of them.
1. Aim at your real number, not a scary headline
The “$1.2 million” figure is an average, not your number. Yours depends on your Social Security, whether your house is paid off, and what you actually spend.
Run your own math before you panic. A retiree spending $50,000 a year with a paid-off home and two Social Security checks needs a very different sum than the headline implies. (2)
2. Turn the retirement wave into your advantage
Dimon’s warning about boomer business owners with no exit plan is also an opening. (1) If you own a small business, the time to plan its sale or handoff is years before you need the money, not the week you retire.
And if you work for one of those owners, a company changing hands can mean your 401(k) does too. Know where your money goes when the nameplate on the door changes.
One thing before we keep going — the financial world is louder and dumber than ever. Hot takes everywhere. Almost none of it is worth your time. I’ve spent 35+ years cutting through the noise so you don’t have to. Sign up for the free Money Talks Newsletter — 10 seconds, no spam, just the stuff that matters.
3. Start where you are — the number moves faster than you think
The most common thing I hear from people behind on savings is that it feels hopeless. It isn’t. Someone who’s 55 with $185,000 saved, still working and contributing, has a very different decade ahead than the number alone suggests — especially once catch-up contributions kick in.
The point isn’t to hit a billionaire’s benchmark. It’s to close your own gap.
4. Grab the tax breaks the wealthy never leave on the table
Here’s a move most people skip: the health savings account, if you’re on a high-deductible health plan. It’s the only account that’s tax-free going in, growing, and coming out for medical costs — and after 65 it works like a traditional IRA for anything else.
A platform like Lively HSAs charges no monthly account fees, and your balance can be invested for long-term growth. Already have one gathering dust at a high-fee provider? Moving it over is simple. On a high-deductible plan and not yet on Medicare? Open a free HSA.
5. Put your investing on autopilot
The people who quietly get there rarely pick hot stocks. They automate steady contributions into a low-cost mix and let decades do the work.
You don’t need a fortune to start. SoFi® Active Invest lets you start with as little as $5 and no account minimums. You can buy fractional shares of companies you know and trade stocks and ETFs with no commissions, or start with a ready-made mix that spreads your money across many companies.
Fund with at least $50 and you can get a stock award worth $5 to $1,000. Open an account today.
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
6. Get one honest second opinion
If you’re within 10 years of retirement and no one has looked at the whole picture — savings, Social Security timing, taxes — that’s the highest-value hour you can spend.
It’s never been easier to find a second set of expert eyes.
For example, SmartAsset matches you free with up to three fiduciary advisors, legally required to put your interests first. A good one earns the fee by spotting investment, Social Security and tax moves you can’t see alone.
If you've got $100,000 or more saved, get matched with a fiduciary advisor free. First appointments are also typically free.
The bottom line
Dimon’s right that the climb has gotten steeper. But a bank CEO’s warning isn’t a verdict on your retirement — it’s a nudge to stop guessing and start planning.
The dream slipping “out of reach for too many” doesn’t have to include you. Most of the people I’ve watched retire comfortably weren’t the highest earners. They were the ones who started, automated, and refused to quit.
Money isn’t the point of any of it, of course. As I’ve always said, the three purposes of money are to meet your needs, to meet some of your wants, and — most important — to make someone smile. Retirement is just making sure you can keep doing all three.
Sources: 1. The Motley Fool; 2. Kiplinger; 3. Forbes
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