Close-up of word "retire" on dictionary page

Yes, you can save $1 million by the time you retire

Most young adults don’t buy into the idea that they will be able to save $1 million by the time they retire, according to a recent Wells Fargo study on millennials. And just six in ten of that same group have even started tackling saving for retirement.

Are you one of those millennials? Have some faith! Time is on your side, and it can be your best friend when trying to build wealth. Here's how Wells Fargo breaks down the math of how a saver starting with a salary of $32,000 at age 25 can reach $1 million in savings by retirement age. 

The truth of the matter is that few people get rich from their wages alone. But by investing your retirement savings in a workplace savings account like a 401(k) or an Individual Retirement Account, and taking advantage of compound interest, almost anyone can reach their long-term financial goals.

What is compound interest, exactly? It means earning interest on your interest over time. And because millennials are at the beginning of their career with many years left before retirement, they are in the best position to save money and grow that savings.

Line graph illustrating $400/month saved with annual return of 7% saved over 40 years vs. 30 years. To demonstrate the miracle of compound interest, let’s compare two savers, Shauna and Jorge. Shauna begins saving $400 each month at age 25 and Jorge begins saving the exact same amount of money at age 35. This chart, which assumes a 7% annual return on stock market investments, illustrates the difference in their savings over time, not accounting for fees or changes to the market. Shauna contributed just 25 percent more, but ends up with more than twice as much as Jorge. 

Now that you know you need to save for retirement, let’s put a plan in place. After all, savers with a plan are twice as likely to save successfully. That’s where America Saves and our pledge comes in. We’ll help you choose an amount to save for retirement each month. Then we’ll keep you motivated with retirement-focused tips, information, advice, and reminders to help you reach you reach your retirement goal. Think of us as your own personal support system.

Take the America Saves Pledge


Yes, you can save $1 million by the time you retire with miracle of compound interest: http://bit.ly/2c4biCV @AmericaSaves
Twitter bird Tweet this now                                                                                                                         

Take the Pledge

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Take the America Saves Pledge

Tip of the Day

  • Written by Tammy G. Bruzon | February 2, 2018

    Does America Saves Week have you wondering about #retirement and when you should start collecting #SocialSecurity? @CFPB has you covered. Get started: http://bit.ly/2nR7EBR #ASW18

Saver Stories View all »

Starting and Continuing a Personal Finance Journey

Written by Sara Cooper | December 23, 2013

When Kiara Hardin, now a junior at Western Illinois University, became an intern with the Chicago Summer Business Institute during her sophomore year of high school, she began her personal finance journey. The program required participants to open a savings account.

Read more...

Taking Steps Toward Financial Fitness

Written by Tammy G. Bruzon | November 7, 2014

Nicky Vasquez learned about Virginia Saves when she attended her first class with Bank On Virginia Beach. The instructor shared how important it was to have a written savings goal, and the entire class joined Virginia Saves as the first step toward financial fitness.

Read more...

Inspired to Build Savings By Starting Small

Written by Great Lakes Michigan Saves | April 19, 2016

With little-to-no money in the bank and living on a limited income with her adult daughter, Sharon wasn’t sure if building up savings for her future was even possible. “At my age, to put debts behind me would be a relief,” she said, but she wasn’t quite sure how to even get started with a savings plan. That all changed when Sharon attended the Great Lakes Michigan Saves Pay Yourself First Saver’s Summit during America Saves Week.

Read more...

Receive Updates

Sign up for Texts

Written by Tammy G. Bruzon | July 15, 2014

Sign Up

Sign up for Emails

Written by Super User | September 16, 2013

Get Emails

Take the Pledge

Written by Super User | September 16, 2013

Start Saving