These are six levels of wealth for Americans in their retirement age – are you close to the top or bottom of the pyramid?
If you are planning your own retirement, you probably have your retirement savings goals in mind. According to a Northwestern Mutual research, Americans think the “magic number” needed to retire comfortably is $1.26 million.
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Comparing your numbers to the actual net worth of retirement age elderly people should give you an idea of how realistic your long-term financial plan is and what lifestyle you can expect in your golden age.
Since Americans expect to retire Medicare ages 65 and above looked at the net worth of households led by elderly people aged 65 to 69.
Based on the Federal Reserve Consumer Financial Survey from 2022, the wealth at six levels of these senior-led households are listed below.
1. Financial vulnerability (Net household assets under $69,500)
Elderly people with net worth less than $69,500 are classified as the bottom 25% of retired people. The group is particularly vulnerable to financial shocks and relies heavily on public safety net programs such as Social Security and Medicare.
If you are approaching retirements that fewer than this number, we recommend looking for more ways to save extra income, money.
2. Lower class ($69,500 to $394,300 household net worth)
According to the Federal Reserve, the median net worth for these households is $394,000. This means that if your wealth is under this benchmark, about half of all older households in this age group are wealthier than you.
This cohort is best described as a low-middle class, but is not necessarily economically vulnerable. However, this is far from a comfortable retirement. Elderly people in this wealth category may need to be tighter budgets.
3. Strongly middle class ($394,300 to $1.16 million household net worth)
Elderly people with net worth placing them between the 50th and 75th percentiles can be described as middle class.
This means you have access to a more comfortable retirement. However, if much of your net worth is trapped in illiquid assets like your home or private business, you may need to find a way to create liquidity in your seniors.