Retirement looks different for everyone, but what does it take to be in the top 10% of wealthy retirees?
It’s not about flashy yachts or endless vacations. The highest level is defined by solid financial planning, diverse income streams, and a clear understanding of how wealth extends beyond Social Security checks.
If you’re curious about where you stand, here’s how to determine if you’re among the top retirees of 2024.
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The Top 10% Net Worth: What’s the Magic Number?
To be in the top 10% of retirees, your net worth must be around $1.9 million, according to Federal Reserve Board survey data. For those between 65 and 74, that figure rises to about $2.63 million; for retirees age 75 and older it rises even higher to $2.86 million. This is in stark contrast to the average retiree, whose net worth is much lower – closer to $280,000 on average. Once you’ve crossed that $2 million mark, you’re probably looking at a very different retirement experience than average.
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Top earnings for retirees – without salary
Here’s where it gets interesting. Wealthy retirees aren’t just sitting on a pile of money. They have built multiple streams of income that continue to flow long after retirement.
While Social Security can pay up to $58,476 annually (if you’re lucky), top retirees earn much more — without even breaking a sweat. Their income comes from investments, rental properties, pensions and sometimes businesses they have built or invested in.
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The average retiree earns about $75,000 annually, but the top 10% bring in significantly more. For those between 65 and 69, the top 10% have an annual income of $200,000.
They earn income from a combination of dividends, rental properties and strategic portfolios, allowing them to live comfortably without depleting their savings.
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Portfolio strategy: what do top retirees do differently?
Wealthy retirees approach investing with a long-term mindset. It’s not about playing it safe; it’s about balance. A typical portfolio for someone in the top 10% might contain about 60% stocks, 35% bonds, and just 5% cash or cash-like investments. They are still looking for growth even in retirement, rather than switching completely to conservative investments.
This ensures that their assets grow and generate income at the same time. They can reduce risk as they get older, but you won’t see these retirees parking all their money in low-yield savings accounts.
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How location influences the perception of wealth
One factor that is often overlooked when considering retirement is where you live. Retirees in certain cities will see their income rise further. While retirees in high-income areas can bring in about $90,000 a year, someone in a lower-cost city can get by just as well on less. For the top 10% of retirees, maintaining a high quality of life often comes from flexibility in choosing their retirement date.
Retiring in the top 10% isn’t just about luck; it is the result of smart planning, diverse income sources and a solid investment strategy. Understanding what’s needed can help you aim higher if you’re not there yet. It’s always a good idea to consult a financial advisor to make sure you’re on the right track.
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This article Are you a ‘rich’ retiree? Here’s the Net Worth and Income You Need to Be in the Top 10% originally appeared on Benzinga.com
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