What Does It Really Take to Retire Rich?
With enough time and consistency, even an average income can lead to a wealthy retirement.


Building your retirement nest egg? Are you on track or lagging? Are you willing to settle for just getting by when you quit your job, or do you want to retire super wealthy?
Some people would rather retire early than rich, while others just want to be happy in their old age. If that’s not you, and retiring rich is your end game, it’s time to get to work and put a plan in place.
Unfortunately, few Americans retire with substantial wealth. Only 0.1% of retirees have amassed $5 million or more in their retirement accounts, with most falling short of the $1.26 million needed for a comfortable retirement, according to Northwestern Mutual’s 2025 Planning & Progress Study. So, what does it really take to retire rich?

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
It starts with a strong financial foundation
A solid financial plan is the secret sauce for long-term success and stability. “To retire with a large amount of wealth typically requires time, says Dr. Stephan Shipe, Ph.D., CFA, CFP®, and founder of Scholar Financial Advising. “While there are great stories of windfalls from a business sale or a long-lost uncle leaving an inheritance, most wealth is generated by starting with a plan early and consistently allocating cash.”
Along with a certain amount of patience and tenacity, it's also important to understand the fundamental concepts of budgeting, income management, tracking expenses, saving and investing, and reducing debt.
Shipe goes on to say that setting aside money in the early years can be difficult because there’s no instant gratification. "You save and save, but make little headway. Even good market years feel like you’re not making progress." A strong financial base comes from smart choices that make your money work for you, not vice versa.
As investors, the rich know a fair amount about limiting exposure and minimizing risk. While speaking to graduate students at Columbia University’s Business School in New York City, Warren Buffett once said that “risk comes from not knowing what you’re doing.” So, it makes sense that the more you educate yourself about personal finance, the more security you’ll have as you minimize risks.
The secret is consistency
In tough economic times, retirees and soon-to-be retirees can’t help but get anxious about what’s ahead. Maybe you’ve scrimped and saved for decades, hoping you’ll enjoy a relaxing and rewarding retirement. But frankly, it's impossible, especially when you’re young, to know what the economy will be like when you reach 65, 70, or whatever retirement age you set for yourself.
Shipe underlines the fact that early on in your career, you may get pulled toward other financial goals, like a home down payment or saving for college, so retirement often falls to the bottom of the list. “The secret is consistency and automation. You have to accept that these competing goals will always exist, and that’s why it’s important to save first, ideally through your 401(k) before you even receive your paycheck."
Low price for high value
Buffett also said, “Price is what you pay; value is what you get.” Wise man. Value is the monetary, material, or assessed worth of an asset, good, or service. But when you pay a high price for something, such as high interest on credit card debt, and it doesn’t match the value you get, you’ve overpaid. Instead, look for opportunities to get more value at a lower price, like when high-value merchandise is marked down. Focus on durability and avoid impulse buys, and if investing, choose low-fee index funds.
Keep some cash on hand
Most experts agree that keeping some cash on hand is smart rather than tying it all up in investments. A good rule of thumb is to have three to six months’ worth of living expenses in an emergency fund that you can easily access, like a high-yield savings account. This can help cover unexpected costs without forcing you to sell investments at a bad time, like when stocks drop or interest rates fall.
Investing everything can leave you vulnerable if markets dip and you need cash fast — selling at a loss stinks. Plus, cash gives you flexibility to seize opportunities, like a discounted purchase or a sudden investment deal. On the flip side, too much cash sitting idle loses value to inflation, so once your emergency fund is set, invest the rest in diversified assets (stocks, bonds, real estate) to grow your wealth. Balance is key: enough cash for peace of mind, but not so much that it’s just gathering dust.
Invest in you
Anytime you invest in yourself, it comes back tenfold. So, is there a secret to growing your own potential? Certified Financial Planner Andrew Latham says, “Yes, but it’s not glamorous.” He advises people to start early, keep it simple, and don’t sabotage themselves. “The real wealth gap isn’t income, it’s behavior over time. Retiring rich or at least comfortable is entirely within reach for most people, if they just avoid the things that can take them out of the game and start early enough.”
Have multiple investment streams
One way to retire rich is to have interest work for you, rather than working to pay interest. Gary Gray, Co-Founder at CouponChief.com, says that the people who retire rich are not obsessively frugal or brilliant investors; they're just steady.
“They continue to put money into things they understand," he says. "By the time you're 50, you need multiple income streams, not just a pile of money sitting in a bank account. The best plan is to start early, keep it boring, and focus on ownership, whether stocks, property, or a little business.”
View retirement as a long game
Building wealth and a self-sustaining retirement takes time, and you may encounter financial challenges along the way. Latham suggests practicing retirement before it happens. “Try living on your projected retirement income for six months. Max out your HSA and invest it for future healthcare costs. Focus on sleep-friendly strategies like paying off a mortgage early or using a portion of savings for income annuities.
He adds that a shift from wealth-building to wealth-protection in your 50s can help ensure a secure retirement for years. “And most importantly, build the discipline to sit still when markets get rough — reaction is often more damaging than inaction. Viewing your finances in retirement as a lifelong game can help you stay on course despite the inevitable hardships you may face. That’s a financial foundation that will last."
What it means to retire rich
Although it's said that money can’t buy happiness, it can buy certain freedoms, independence, and a little breathing space — all of which enhance your joy in your golden years.
While your net worth defines your financial standing, true retirement wealth goes beyond the money in your accounts or your assets. It also includes a sense of freedom and security from intentional financial planning and a life well-lived.
The wealthy recognize that knowledge is only half the battle, says Greg Luken, founder and wealth advisor at Luken Wealth Management. “You can read all the books, attend all the seminars, and strategize endlessly — but without action, nothing changes. Execution is the bridge between dreams and reality, between financial struggles and financial success."
So, whether you’re in the 30th or 99th percentile, retirement wealth is strongly affected by thoughtful decision-making and a clear vision for the future. Understanding where you stand today can help you chart a course toward a retirement that aligns with your aspirations and values.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
-
Best Home Rental Websites and Apps 2025
The best home rental websites and apps, such as Rent.com, Apartment Guide, Airbnb and Vrbo, can make finding a home or vacation rental a whole lot easier.
-
Stock Market Today: Markets Chop Up More Trump Threats
Stocks are grinding to new highs on light summer volume, and bitcoin is only getting bigger.
-
Stock Market Today: Markets Chop Up More Trump Threats
Stocks are grinding to new highs on light summer volume, and bitcoin is only getting bigger.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have Today
Procter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
2026 Social Security COLA: The Little Known Data Shift That Could Impact Millions of Retirees' Benefits
The BLS has changed how it measures the inflationary data that determines whether Social Security benefits will get a Cost-of-Living Adjustment (COLA). Will it hurt your benefits?
-
Financial Pros Provide a Beginner's Guide to Building Wealth in 10 Years
Building wealth over 10 years requires understanding your current financial situation, budgeting effectively, eliminating high-interest debt and increasing both your income and financial literacy.
-
The Delightful Way to Protect Your Cognitive Health
You know the drill — protect your cognitive health by eating well, exercising and socializing. But this newfound way to boost brain health is pure pleasure.
-
Five Mistakes to Avoid in Your First Year of Retirement
Retirement brings the freedom to choose how to spend your money and time. But choices made in the initial rush of excitement could create problems in future.
-
I'm an Investing Expert: This Is How You Can Invest Like Warren Buffett
Buffett just invested $15 billion in oil and gas, and you can leverage the same strategy in your IRA to potentially generate 8% to 12% quarterly cash flow while taking advantage of tax benefits that are unavailable in any other investment class.
-
Integrity, Generosity and Wealth: A Faith-Based Approach to Business
Entrepreneurs who align their business and financial decisions with the biblical principles of integrity, generosity and helping others can realize impactful and fulfilling success.