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 Katie Bryan | December 19, 2013

    Keep #holiday #debt in check by setting a #savings plan & sticking to it! http://ow.ly/COU1y

Saver Stories View all »

Transforming “I Can’t Save” to “I Will Save”

Written by Guest Blogger | January 13, 2016

You will not believe what it took to completely change my life. About three years ago, the HR Administrator of the corporation where I worked (as a temp with no benefits) forwarded an email to me. Fifteen seconds. One small act of kindness. That's it - that's all it took!

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...

Learning to Save

Written by Katie Bryan | October 28, 2013

Kisha Barns’s financial situation was undisciplined, unrestricted, and impulsive before she came into contact with her local America Saves campaign, Charlotte Saves.

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