Here’s How to Save $1 Million for Retirement — Without a 6-Figure Salary

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

[[{“value”:”Image source: Getty Images
Most people think hitting $1 million in retirement savings requires a massive paycheck. But the truth is, plenty of everyday earners — teachers, freelancers, retail workers, and people earning well under six figures — have quietly built seven-figure nest eggs. The key isn’t earning more. It’s starting early, staying consistent, and letting time do the heavy lifting.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. If you’ve ever wondered whether you can retire comfortably without earning six figures, the answer is yes. It takes planning, patience, and a few smart moves — but it’s more doable than you might think.Here’s how to build a $1 million nest egg, even on an average income.1. Start where you are — and don’t wait for a “better time”You don’t need to max out a 401(k) tomorrow. But you do need to start contributing something now — even $100 a month matters. If you’re 25 years old and invest $150 a month in a retirement account with an average 8% return, you’ll have over $500,000 by the time you’re 65. Double that contribution to $300 a month, and you’ll be flirting with $1 million.Waiting until your 40s? You’ll need to put away much more — closer to $750 a month — just to catch up. The earlier you start, the less you have to save later.Pro tip: This no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.2. Use the right accounts so your money grows fasterNot all savings accounts are created equal — especially when it comes to retirement. The accounts you use have a massive impact on how fast your money grows, thanks to tax advantages and compound returns.If you’re working for a company that offers a 401(k), that’s usually the best place to start. Not only can you contribute directly from your paycheck before taxes, but many employers will also match a percentage of your contributions.A Roth IRA lets you contribute after-tax income now so your money grows tax-free and can be withdrawn tax-free in retirement. If you expect to be in a higher tax bracket later, this can be a huge win. There’s also the traditional IRA, which gives you upfront tax benefits similar to a 401(k).Choosing the right mix of accounts doesn’t have to be complicated, but it does make a big difference. The earlier your money starts compounding in a tax-friendly account, the better off you’ll be.3. Make it automatic and boringSet your contributions to auto-deduct from your paycheck or checking account. The less you think about it, the more likely you are to stick with it. And resist the urge to time the market — long-term investing rewards consistency, not cleverness.You don’t need to pick individual stocks either. A low-cost target-date fund or broad index fund is a smart, hands-off way to grow your money. If you’re not sure where to start, a short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.Pro tip: Automation can make it easy to forget to increase your contributions. Get a raise? Increase your retirement contributions before your lifestyle catches up. Small amounts can really add up thanks to compound interest.4. Understand the real power of compoundingLet’s break it down. Here’s what you’d need to invest monthly to hit $1 million by age 65 (assuming 8% average annual returns):Age You StartMonthly Contribution Needed25$31130$44635$67940$1,065Data source: Author’s calculations.This chart isn’t meant to stress you out — it’s meant to show that the earlier you start, the easier it becomes. You don’t have to be rich. You just have to be consistent.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Most people think hitting $1 million in retirement savings requires a massive paycheck. But the truth is, plenty of everyday earners — teachers, freelancers, retail workers, and people earning well under six figures — have quietly built seven-figure nest eggs. The key isn’t earning more. It’s starting early, staying consistent, and letting time do the heavy lifting.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

If you’ve ever wondered whether you can retire comfortably without earning six figures, the answer is yes. It takes planning, patience, and a few smart moves — but it’s more doable than you might think.

Here’s how to build a $1 million nest egg, even on an average income.

1. Start where you are — and don’t wait for a “better time”

You don’t need to max out a 401(k) tomorrow. But you do need to start contributing something now — even $100 a month matters. If you’re 25 years old and invest $150 a month in a retirement account with an average 8% return, you’ll have over $500,000 by the time you’re 65. Double that contribution to $300 a month, and you’ll be flirting with $1 million.

Waiting until your 40s? You’ll need to put away much more — closer to $750 a month — just to catch up. The earlier you start, the less you have to save later.

Pro tip: This no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.

2. Use the right accounts so your money grows faster

Not all savings accounts are created equal — especially when it comes to retirement. The accounts you use have a massive impact on how fast your money grows, thanks to tax advantages and compound returns.

If you’re working for a company that offers a 401(k), that’s usually the best place to start. Not only can you contribute directly from your paycheck before taxes, but many employers will also match a percentage of your contributions.

A Roth IRA lets you contribute after-tax income now so your money grows tax-free and can be withdrawn tax-free in retirement. If you expect to be in a higher tax bracket later, this can be a huge win. There’s also the traditional IRA, which gives you upfront tax benefits similar to a 401(k).

Choosing the right mix of accounts doesn’t have to be complicated, but it does make a big difference. The earlier your money starts compounding in a tax-friendly account, the better off you’ll be.

3. Make it automatic and boring

Set your contributions to auto-deduct from your paycheck or checking account. The less you think about it, the more likely you are to stick with it. And resist the urge to time the market — long-term investing rewards consistency, not cleverness.

You don’t need to pick individual stocks either. A low-cost target-date fund or broad index fund is a smart, hands-off way to grow your money. If you’re not sure where to start, a short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.

Pro tip: Automation can make it easy to forget to increase your contributions. Get a raise? Increase your retirement contributions before your lifestyle catches up. Small amounts can really add up thanks to compound interest.

4. Understand the real power of compounding

Let’s break it down. Here’s what you’d need to invest monthly to hit $1 million by age 65 (assuming 8% average annual returns):

This chart isn’t meant to stress you out — it’s meant to show that the earlier you start, the easier it becomes. You don’t have to be rich. You just have to be consistent.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More