Why aren’t more people in their 60’s in the US millionaires?

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by Conundrum5

According to a compounding calculator I just tried, someone who starts with $0 at age 25 and adds 10k a year until age 60 to an investment account with a yearly average ROI of 5% will end up with just shy of a million at age 60. 5% is a fairly conservative estimated yearly return.

But according to this net worth by age calculator, only 20% of people in their 60’s in the US are millionaires in terms of net worth. dqydj.com/net-worth-by-age-calculator-united-states/

I’m certainly not saying that everyone is in a position to add 10k per year to an investment account, but I’d have thought that more than 20% of the population would be in a position to do that. Plus this is a net worth calculator that counts home equity, meaning home value is included in the estimate for home owners

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So what’s going on here? Are more people living paycheck to paycheck than I realize? Are people just really not that good at saving much?

EDIT: here are some more conservative numbers. If you start at age 30 (rather than 25) and save 5k per year, with a fairly conservative estimate of 5% returns per year which arguably accounts for a few % of inflation each year, you’d have 350k by age 60 and 634k by age 70, which according to the calculator linked above is a lot closer to the median percentile (60-70 percentile in this case)

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