Average retirement savings is a popular topic. But, new analysis using the Survey of Consumer Finances (SCF) data reports on what it takes to be in the top 1%, 5%, 10%, and 50% of wealthiest retirees. Scroll down to see how you compare.
In order to understand what it means to be wealthy as a retiree, let’s first talk about what wealth is.
There are different measures of wealth with the most popular being: income, savings, and net worth. Of those three, net worth is considered to be the most accurate or all encompassing measure. It is defined as the total value of all assets minus the total value of all liabilities.
Age, how “retirement” is defined, and whether you are measuring a person’s or a family’s wealth are some other things that you should think about.
How do you define “retirement wealth”? When we talk about wealth in this article, we mean the net worth of a household of people over 65, whether they work or not.
Are you wondering if your retirement savings will make you wealthy, comfortable, or just scraping by? I’ve been researching this topic extensively, and the answer might surprise you. Today I’m breaking down exactly what constitutes a wealthy retirement according to the latest data from the Federal Reserve and financial experts.
The Definition of Retirement Wealth
When we talk about being wealthy in retirement, we’re not just talking about having a fat bank account. Retirement wealth is typically measured by two key factors:
- Net Worth: The total value of your assets minus liabilities
- Income Streams: The reliable sources of money flowing in each month
Unbiased’s financial experts say that a person is generally thought to be wealthy in retirement if they have a net worth of at least $1 million, which does not include their main home. This includes investments, savings, extra homes, and other assets that are not mortgages or debts.
But here’s where it gets interesting – that definition varies widely depending on who you ask and where you live!
The Wealth Spectrum at Age 65
The Federal Reserve data paints a clear picture of how retirees’ money is spread out. Here’s how the wealth breaks down at retirement age:
| Percentile | Net Worth | Status |
|---|---|---|
| 20th | $10,000 | Bottom Tier |
| 50th | $281,000 | Middle Class |
| 90th | $1.9 million | Well-Off |
| 95th | $3.2 million | Wealthy |
| 99th | $16.7 million | Super Wealthy |
Let’s break these down:
Bottom Tier (20th percentile)
With just $10,000 in net worth these households likely don’t own a home or vehicle and have minimal savings. Their focus is primarily on covering basic necessities.
Middle Class (50th percentile)
At $281000 in net worth, typically consisting of home equity plus modest retirement savings these retirees can engage in some social activities but still need to budget carefully.
Well-Off (90th percentile)
With $1.9 million (almost 7 times higher than the median), these retirees can consider bucket list trips, leave inheritances, fund grandchildren’s education, and give to charity.
Wealthy (95th percentile)
At $3.2 million these households shift from day-to-day financial planning to comprehensive wealth management. They often work with tax professionals, estate planners, and financial advisors.
Super Wealthy (99th percentile)
With a staggering $16.7 million—59 times more than the middle class—retirement for these folks is virtually unlimited in terms of experiences and lifestyle.
Economic Classes for Retirees
If you wanna break it down even simpler, Unbiased classifies retirees into four economic classes:
- Poor: Net worth under $50,000, heavily reliant on Social Security
- Middle-Class: Net worth from $50,000 to $500,000, comfortable but requires careful budgeting
- Upper-Class: Net worth between $500,000 and $1 million, sufficient savings without financial strain
- Rich: Net worth exceeding $1 million, can afford luxury and leisure without financial worry
Net Worth by Age: How Do You Measure Up?
I found these fascinating stats from the Federal Reserve’s “Survey of Consumer Finances” showing median net worth by age group through 2022:
| Age Range | Median Net Worth |
|---|---|
| Under 35 | $39,000 |
| 35-44 | $135,300 |
| 45-54 | $246,700 |
| 55-64 | $364,300 |
| 65-74 | $410,000 |
| 75+ | $334,700 |
Looking at the more recent data from Empower (through July 2025), median net worth peaks in our 60s at $290,865 and then gradually declines as we age and draw down on our savings.
Location, Location, Location!
It’s very important to remember that where you live affects how rich you are. It’s not the same to have a million dollars in Manhattan as it is in Mississippi!
For example, in Loyola, California (America’s most expensive suburb), the average home sells for $3.9 million. Meanwhile, in West Virginia, the median home price is just $139,000.
This means that someone living in a low-cost area might think they are rich if they have $750,000 saved for retirement, while someone in San Francisco or New York would need $3 million to keep up the same standard of living.
Building Your Retirement Wealth
Okay, so now that we know what “wealthy” looks like, how do we get there? Here are my top tips:
1. Start Early and Stay Consistent
Those in higher percentiles typically started saving early, saved consistently, and saved significantly. The magic of compound interest is real, y’all!
2. Leverage Retirement Accounts
Take full advantage of your 401(k), especially if your employer offers matching contributions (hello, free money!). For 2025, the contribution limit is $23,500 for workers under 50, with an additional $7,500 catch-up contribution for those 50+.
Starting in 2025, savers ages 60-63 can boost their catch-up contribution to $11,250 thanks to the Secure Act 2.0. This is huge for folks trying to make up for leaner years!
3. Diversify Your Investments
“Don’t put all your eggs in one basket,” as my grandma used to say. A diversified portfolio helps you build and maintain wealth over time.
4. Buy Assets That Appreciate
You can’t build wealth by hiding money under your mattress. Invest in things that make money while you sleep – stocks, bonds, real estate.
5. Minimize Debt
Since debt is subtracted from your assets to determine net worth, less debt means higher net worth. Simple as that!
6. Consider Entrepreneurship
Nearly half of families in the top 10% of net worth owned a privately held business, according to Fed data. Not everyone will be Elon Musk, but business ownership is definitely a path to wealth.
Challenges in Maintaining Wealth in Retirement
Building wealth is one thing, keeping it is another! Here are some challenges to watch out for:
- Market volatility can impact investment portfolios
- Unexpected health issues and long-term care costs can quickly deplete savings
- Inflation can erode purchasing power over time
- Poor risk management without regular financial plan adjustments
What Wealthy Retirement Looks Like in Practice
So what does a wealthy retirement actually look like in real life? Here are some telltale signs:
- Multiple income streams beyond just Social Security
- Ability to handle unexpected expenses without stress
- Freedom to travel extensively when desired
- Financial capacity to help family members or donate to causes
- High-quality healthcare without worrying about costs
- Professional wealth management services
- Multiple properties or vacation homes
The Bottom Line
Wealth in retirement isn’t just about a specific dollar amount – it’s about having enough resources to live the lifestyle you desire without financial stress.
For most Americans, a wealthy retirement means having a net worth of at least $1-3 million by their 60s, multiple reliable income streams, and minimal debt. However, this definition varies widely based on location, lifestyle preferences, and individual needs.
The good news? With disciplined saving, smart investing, and proper planning, achieving a wealthy retirement is within reach for many people – even if they don’t have particularly high incomes during their working years.
Remember, building wealth for retirement requires three key elements: initial investment, rate of return, and time. Having more of one means you can get by with less of the others!
What’s your retirement wealth goal? Are you on track to meet it? I’d love to hear your thoughts in the comments below!
Disclaimer: This article provides general information and shouldn’t be considered financial advice. Everyone’s situation is unique, and I recommend consulting with a certified financial advisor to develop a personalized retirement plan.
How the Wealthiest Retirees Manage Retirement Expenses
Top retirees often follow disciplined spending strategies. They track housing, healthcare, inflation, and unexpected costs carefully. Using a detailed planner helps maintain wealth while supporting a high-quality retirement. Our retirement forums section includes real stories from retirees who manage expenses strategically.
How do millionaires grow their net worth?
Here are five key take aways:
- Rich people saved as much as they could in a 401(k) or other retirement plan through their jobs.
- They also saved and invested outside of their company plan
- Rich retirees didn’t just invest in a few stocks; they spread their money around.
- They began investing and saving money early in their careers, but it’s never too late to do either. See 28 ways to grow wealth, even after 50).
- Consistency was key
The average net worth of a Boldin subscriber is just over $3 million.
It’s not a surprise that the top 5% are using the most powerful online retirement planning tool. It isn’t just saving and investing that grows net worth. Building and maintaining a financial plan that enables you to make better financial decisions with regards to all aspects of your fiscal health is also an important factor.
When is a Retiree Considered “Wealthy” ??? | FRB Data
FAQ
How much money is considered wealthy in retirement?
Net worth refers to the total value of assets minus liabilities. Financial experts typically consider someone wealthy if they have a retirement net worth of at least $1 million, excluding the value of their primary residence.
How many people have $1,000,000 in retirement savings?
While a exact, real-time number isn’t available, estimates using the most recent Federal Reserve data from 2022 suggest around 3. 2% to 4. 7% of Americans have $1 million or more in retirement accounts.
What is the net worth of the top 5 of retirees?
A: As of 2025, retirees in the top 5% typically have a net worth of $3 million or more. However, wealth is relative and depends on lifestyle, location, and retirement goals. A solid retirement planning spreadsheet can help you compare your financial position against national benchmarks.
What is a good net worth to retire comfortably?
There is no universal amount needed to retire comfortably; the figure depends on your personal expenses, lifestyle, and when you plan to retire.
What is retirement wealth?
Retirement wealth is not simple — the concept ranges from small savings to enormous fortunes. To see where you are on this scale, you must first understand percentiles and net worth. Figuring out wealth depends on household net worth.
What is a high net worth in retirement?
“For example, many consider a net worth of $5 million or more as entering high-net-worth territory, and $10 million or more as very high-net-worth,” she said. However, wealth in retirement is also about how efficiently assets generate income, Jensen added.
Who are affluent retirees?
These wealthy retirees are usually former bankers, lawyers, C-suite executives, or business owners who are used to living a lavish and debt-free life. If you’re a high earner planning for retirement, the gates to this prestigious club should be within reach.
What is a top 1% retirement plan?
Top 1% (Household net worth $21. 7 million or more) Only the top 1% in this bracket have a net worth over $21. 7 million. This is the ultra-wealthy group that most Americans can only dream of belonging to. If you fall into this group, your retirement plan probably looks a little unconventional.
How much money should you invest in retirement?
There is no target amount that suits everyone. “Being wealthy in retirement isn’t defined by a single dollar amount, it’s defined by freedom, security and the ability to live the life you want without financial stress,” said Linda Jensen, CEO of Heart Financial Group in Olympia, Washington, in an email. “For some, that might mean $1. 5 million.
How much money do you need to retire comfortably?
Americans believe the “magic number” they need to retire comfortably is $1. 26 million, according to a survey by Northwestern Mutual. Comparing your number with the actual net worth of retirement-age seniors should give you an idea of how realistic your long-term financial plan is and what kind of lifestyle you can expect in your golden years.