Warren Buffett is one of the most popular financial personalities in the world. He also happens to be the CEO of Berkshire Hathaway — the nineth-largest company in America, per SlickCharts — and the 6th-richest person on Earth, according to Forbes.
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Fortunately for the world, Buffett has long pledged to donate more than 99% of his immense wealth to various philanthropic organizations once he passes. But what if instead he chose to hand it out to average Americans in a quest to help them retire early? Would that be enough to conquer the wealth gap in America or would it just be a drop in the bucket?
Here’s a look at how much money Buffett actually has and if it’s really enough to help Americans retire early.
Buffett’s Net Worth vs. the Average American
Forbes reported that Buffett currently has a net worth of $154 billion. While nowhere near the top dog Elon Musk’s estimated wealth, at a whopping $405.2 billion, Buffett isn’t likely to care much. “Were we to use more than 1% of my claim checks (Berkshire Hathaway stock certificates) on ourselves, neither our happiness nor our well-being would be enhanced. In contrast, that remaining 99% can have a huge effect on the health and welfare of others,” as he told The Giving Pledge when he made his promise in 2010.
Those words suggest that Buffett is more in touch with everyday Americans than many billionaires on the Forbes list. As of 2022, the most recent year for which Federal Reserve data is available, the median net worth for all U.S. households was $192,700. The median net worth is generally considered the most appropriate yardstick because the average net worth — $1,063,700 — is skewed higher by some very high net worth individuals.
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How Much Do Americans Need To Retire — and Could Buffett Help?
According to Northwestern Mutual’s 2025 Planning & Progress Study, Americans feel they will need $1.26 million to retire comfortably. With a current median net worth of $192,700, it means they have a lot of ground to make up. Would a handout from one of the world’s richest men help out? Let’s do the math.
According to the Census Bureau, about 12.56% of Americans are between ages 45 and 65. That means roughly 43 million Americans will likely retire over the next 20 years. If you were to distribute Buffett’s $154 billion fortune equally across all of those Americans nearing retirement, you might be disappointed at the result. Each of those 43 million Americans would only receive a payout of $3,581.39, which is clearly not enough to allow any of them to retire early. In fact, for most of those Americans, that sum wouldn’t even cover one month’s worth of expenses.
What Can You Do To Close the Retirement Gap Yourself?
Unfortunately, even the immense wealth of the 6th-richest person in the world doesn’t amount to a whole lot when distributed on a mass basis. Even if you were to somehow receive that handout, you’d still have to fend for yourself in terms of retiring early. But how could you grow your net worth from the median $192,700 to the needed $1.26 million?
Invest
The more time you have on your hands until you retire, the more you can take advantage of compound interest. If you still have 20 years until you retire, earning an 8% annual return on your $192,700 net worth would get you almost all the way there, to roughly $950,000. Adding $500 per month could get you to about $1.24 million, just shy of the $1.26 million goal.
If you only have 10 years until you retire, you’ll have to start saving aggressively. Adding $4,500 per month to your initial investment of $192,700 could grow your money to about $1.25 million. If you could earn a 10% annual return, you’d only have to sock away about $3,500 per month instead.
Downsize or Relocate
If you can’t make up your retirement shortfall on the income side, the other alternative is to reduce your expenses. If you could downsize your home or relocate to a more affordable area, then you may need far less than the $1.26 million expected by the average American. If you only need $700,000 to retire comfortably, for example, that’s a much easier goal to reach than $1.26 million.
Buffett’s Wealth Would Simply Not Be Enough
Although Buffett has pledged to give away the vast majority of his wealth, he won’t be handing it out directly to the American people. Even if he did, it would only amount to a small sum for the Americans retiring in the next 20 years — and far less if he distributed it among every single American. The good news is that with some planning, dedicated saving and investing, you can position yourself to retire comfortably without anyone’s help but your own.
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This article originally appeared on GOBankingRates.com: How Many Americans Could Retire Early With Warren Buffett’s Net Worth?
