When is a retiree considered 'wealthy' in America? Here's what the data shows (and what to do if you're not there yet)
When is a retiree considered 'wealthy' in America? Here's what the data shows (and what to do if you're not there yet).
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Baby Boomers are the wealthiest generation in American history. Thanks to a unique set of economic circumstances, these seniors have accumulated $85 trillion to $93 trillion in cumulative assets, more than any other generation, according to the Washington Post (1).
If you're a retiree, there's a good chance some of your peers are significantly wealthier than you. But what if you're part of that elite club as well?
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Here's how you can tell if your net worth is enough to qualify for the big leagues.
The downside of being part of the wealthiest generation in history is that traditional markers of success are inadequate.
For instance, the average net worth of households led by someone aged 65 to 74 is $1.79 million, according to Fidelity (2). That means you could be a literal millionaire and still be considered just average.
And since there's no standard definition, here are the thresholds for the top 10%, 5% and 1% of households between the ages of 65 and 69, based on analysis of the Federal Reserve 2022 Survey of Consumer Finances (SCF) by DQYDJ (3).
Household Percentile and net worth of individuals aged 65-69:
Simply put, you'll need anywhere from $3 million to $22 million to be considered wealthy amongst American seniors, depending on your personal definition.
That is an astonishing level of prosperity and the good news is that if you're still several years away from retirement, you have a shot at entering this club with a few savvy money moves.
Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going
If you haven't cracked the top tier yet, replicating the financial moves of America's wealthiest boomers could help boost your progress.
For instance, wealthy Americans are much more likely to have professional financial advisors assisting them.
Nearly 74% of high-net-worth individuals surveyed by Northwestern Mutual (4) reported using a financial advisor, compared with just 34% of the general population.
With that in mind, hiring an expert to help you plan and manage money could be a smart move. Advisor.com makes it easy by using an automated matching tool to connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences. Their network includes fiduciaries, who are legally required to act in your best interests and you can set up a free initial consultation , with no obligation to hire, to see if they're the right fit for you.
