Just 16% of retirees say they have more than $1 million saved, including all personal savings and assets, according to the recent CNBC Your Money retirement survey conducted with SurveyMonkey. In fact, among those currently saving for retirement, 57% say the amount they're hoping to save is less than $1 million.
Key Takeaways. The lower class has a median net worth of about $3,500, while the upper class has one of about $7.81 million. The middle class has a median net worth that ranges from $93,300 to $1.04 million.
The Average Retirement Savings for the Upper Class
According to data from The Motley Fool: The top 10% of earners have a median retirement savings balance of $900,000. Those in the next tier (75th – 89.9th percentile) have a median balance of $269,000.
According to Kiplinger data, to be in the top 1% of wealth in the U.S. in 2024, one must have a net worth of about $11.6 million. That's up significantly from past years, showing just how concentrated wealth has become at the top. But the 1% isn't the only benchmark worth considering.
Probably 1 in every 20 families have a net worth exceeding $3 Million, but most people's net worth is their homes, cars, boats, and only 10% is in savings, so you would typically have to have a net worth of $30 million, which is 1 in every 1000 families.
Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
According to estimates based on the Federal Reserve Survey of Consumer Finances, a mere 3.2% of retirees have over $1 million in their retirement accounts. The number of those with $2 million or more is even smaller, falling somewhere between this 3.2% and the 0.1% who have $5 million or more saved.
What is a good net worth for my age? People in their 20s and 30s should target net worth of $100,000 to $300,000. A net worth of $1 million or more should be the goal in your 40s and beyond. A seven-figure net worth is usually necessary to ensure a comfortable retirement.
Every year since 2017, Charles Schwab has conducted its Modern Wealth Survey, which asks Americans about both their actual finances and their beliefs about money. In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.
What are the average and median retirement savings? The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000.
So, can I retire at 60 with $5 million? Based on our study, we find that $5 million should be enough for couples who spend $120,000 per year after-taxes on fixed living expenses, plus the cost of healthcare, travel, a periodic vehicle purchase, charitable giving, and affording nursing care later in life.
For example, if you have retirement savings of $1 million, the 4% rule says that you can safely withdraw $40,000 per year during the first year — increasing this number for inflation each subsequent year — without running out of money within the next 30 years.
According to some experts, the optimal range for home-ownership is between 10% and 30% of your net worth. Rental properties and passive income: Rental properties are another common and attractive form of real estate.
"For estate tax purposes all assets should be listed on the net worth statement, including tangible personal property like clothing, jewelry, furniture, cars, collections and art.
Your home is likely your most valuable asset, and the value that you assign to it will have a great impact on your net worth calculation. A qualified real estate professional can give you an estimate of your home's value, or you can research online real estate aggregators such as Trulia or Zillow.
To crack the top 10% of retirees, your net worth needs to hit around $1.9 million, according to Federal Reserve Board survey data.
Other sources define the upper-middle class as anyone making a lot of money but that hasn't crossed the threshold to become truly wealthy. These individuals often have a net worth of at least $500,000 to $2 million.
A “nest egg” generally refers to retirement savings that you typically don't touch until you retire. It's the money you save for the future so that you have something to fall back on when you retire.
According to Kiplinger, by 2025, entering the top 2% of America's wealth will require a net worth of approximately $2.7 million, marking the threshold for elite economic status.
Upper-Class: With an upper middle class net worth between $500,000 and $1 million, upper-class retirees enjoy a comfortable lifestyle. They have sufficient savings and investments to cover their needs without financial strain. Rich: Those who retire wealthy have a net worth exceeding $1 million.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.