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Yahoo
23-05-2025
- Business
- Yahoo
Do You Have An 'Upper Class' Nest Egg? Here's What The Top 20% Have Saved For Retirement — Hint, It's Less Than You'd Think
Maybe you're living the good life now—grocery delivery, takeout on repeat, the kind of spending that doesn't require checking your bank app first. Or maybe you're playing the long game—budgeting, investing, skipping the daily lattes—hoping it all pays off when retirement rolls around. Either way, the goal's the same: to retire comfortably, maybe even with a taste of the upper class. But what does that actually take? More specifically, how much does the average upper-class household really have set aside for retirement? Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. It's not just about income—though that's part of it. According to Pew Research, an upper-class household of three earns at least $256,920. But income alone won't carry you through retirement. That's where net worth—and retirement savings—take over. A New York Times analysis shows upper-class families typically have a 3:1 wealth-to-income ratio, meaning that $256,000 income translates to around $770,760 in net worth. And according to the Federal Reserve's Survey of Consumer Finances: The top 10% of U.S. households hold a median net worth of $2.7 million. The 75th to 89.9th percentile sits closer to $790,000. So whether you define "upper class" by income or wealth, the bar is high—and rising. Net worth can include a lot—your house, your brokerage account, maybe even a chunk of that side business your cousin swears is "about to blow up." But when it comes to what's specifically earmarked for retirement, the numbers start to look a little more grounded. The top 10% have a median retirement savings of $900,000. The next tier down—the 75th to 89.9th percentile—comes in at just $269,000. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — That's a big drop, and a good reminder: being "upper class" doesn't always mean you're sitting on millions in a retirement account. Put that next to the median U.S. household, which has about $87,000 saved, and the picture gets clearer. Overall, the average upper-class retirement nest egg likely falls somewhere between $400,000 and $500,000—solid, for sure, but maybe not as sky-high as you'd assumed. It's not just bigger paychecks—it's different habits. The wealthiest 20% tend to approach retirement planning like a long game, not a last-minute scramble. Here's what they often get right: They save like it's a billFor them, contributing to retirement isn't optional—it's automatic. Pay comes in, savings go out. No debate. They invest early—and stay inThey don't try to time the market. They buy, hold, and let compounding do its quiet magic. They make the tax code work for them Roth IRAs, 401(k) matches, HSAs—they know the tools and use them. Every little tax break adds up. They get advice instead of winging itThey're not scrolling Reddit for retirement tips. They call someone with a license and a strategy. They plan for the life they want—not just the bills they'll oweIf you're not where you planned to be, don't panic. These moves can help you build your own retirement cushion: Start where you are: Even small contributions add up over time. Max out your employer match: Free money? Always say yes. Open an IRA: Traditional or Roth, it's another place to grow your savings tax-advantaged. Boost your savings rate: Every raise is an opportunity. Use catch-up contributions: If you're 50+, take advantage of higher limits. The upper class isn't coasting through retirement on vibes—they're bringing real savings to the table. Somewhere between $400,000 and $900,000, to be exact. If you're living well now, think of retirement like the sequel: it should live up to the original. But it won't happen by accident. It takes planning, habit, and a little bit of discipline—right alongside the Amazon boxes and sushi orders. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Do You Have An 'Upper Class' Nest Egg? Here's What The Top 20% Have Saved For Retirement — Hint, It's Less Than You'd Think originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
23-05-2025
- Business
- Yahoo
Do You Have An 'Upper Class' Nest Egg? Here's What The Top 20% Have Saved For Retirement — Hint, It's Less Than You'd Think
Maybe you're living the good life now—grocery delivery, takeout on repeat, the kind of spending that doesn't require checking your bank app first. Or maybe you're playing the long game—budgeting, investing, skipping the daily lattes—hoping it all pays off when retirement rolls around. Either way, the goal's the same: to retire comfortably, maybe even with a taste of the upper class. But what does that actually take? More specifically, how much does the average upper-class household really have set aside for retirement? Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. It's not just about income—though that's part of it. According to Pew Research, an upper-class household of three earns at least $256,920. But income alone won't carry you through retirement. That's where net worth—and retirement savings—take over. A New York Times analysis shows upper-class families typically have a 3:1 wealth-to-income ratio, meaning that $256,000 income translates to around $770,760 in net worth. And according to the Federal Reserve's Survey of Consumer Finances: The top 10% of U.S. households hold a median net worth of $2.7 million. The 75th to 89.9th percentile sits closer to $790,000. So whether you define "upper class" by income or wealth, the bar is high—and rising. Net worth can include a lot—your house, your brokerage account, maybe even a chunk of that side business your cousin swears is "about to blow up." But when it comes to what's specifically earmarked for retirement, the numbers start to look a little more grounded. The top 10% have a median retirement savings of $900,000. The next tier down—the 75th to 89.9th percentile—comes in at just $269,000. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — That's a big drop, and a good reminder: being "upper class" doesn't always mean you're sitting on millions in a retirement account. Put that next to the median U.S. household, which has about $87,000 saved, and the picture gets clearer. Overall, the average upper-class retirement nest egg likely falls somewhere between $400,000 and $500,000—solid, for sure, but maybe not as sky-high as you'd assumed. It's not just bigger paychecks—it's different habits. The wealthiest 20% tend to approach retirement planning like a long game, not a last-minute scramble. Here's what they often get right: They save like it's a billFor them, contributing to retirement isn't optional—it's automatic. Pay comes in, savings go out. No debate. They invest early—and stay inThey don't try to time the market. They buy, hold, and let compounding do its quiet magic. They make the tax code work for them Roth IRAs, 401(k) matches, HSAs—they know the tools and use them. Every little tax break adds up. They get advice instead of winging itThey're not scrolling Reddit for retirement tips. They call someone with a license and a strategy. They plan for the life they want—not just the bills they'll oweIf you're not where you planned to be, don't panic. These moves can help you build your own retirement cushion: Start where you are: Even small contributions add up over time. Max out your employer match: Free money? Always say yes. Open an IRA: Traditional or Roth, it's another place to grow your savings tax-advantaged. Boost your savings rate: Every raise is an opportunity. Use catch-up contributions: If you're 50+, take advantage of higher limits. The upper class isn't coasting through retirement on vibes—they're bringing real savings to the table. Somewhere between $400,000 and $900,000, to be exact. If you're living well now, think of retirement like the sequel: it should live up to the original. But it won't happen by accident. It takes planning, habit, and a little bit of discipline—right alongside the Amazon boxes and sushi orders. Read Next: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Do You Have An 'Upper Class' Nest Egg? Here's What The Top 20% Have Saved For Retirement — Hint, It's Less Than You'd Think originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
20-05-2025
- Business
- Yahoo
Suze Orman says US retirees now need to have a five-year ‘just-in-case' fund — but is that a realistic goal?
If you're heading into your golden years without a sizable "just-in-case" fund, you could be walking a financial tightrope without a safety net. Suze Orman expressed this concern during a recent episode of her Women & Money podcast. The personal finance expert believes seniors should save enough money to cover three-to-five years' worth of living expenses in liquid accounts that are shielded from stock market turbulence and can be easily cashed out without having to sell any assets. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Her reasons for exercising such caution are simple: Orman warns that when the stock market crashes, recovery isn't always swift. In fact, it can take years for the market to rebound. For retirees who rely on investments to cover their monthly bills, a downturn could force them to sell at a steep loss just to survive. 'It's not always that stocks go down and bonds go up, or bonds go down and therefore stocks go up,' Orman said on the podcast. 'Sometimes everything can go down.' Orman's just-in-case fund is a strategy that, on paper, screams financial wisdom. But is it realistic for the average American? According to the Federal Reserve's 2022 Survey of Consumer Finances, the average retirement savings for American families is roughly $333,940. Diving deeper, households headed by those under 35 are looking at a median retirement savings of just $18,880, while the median for those aged 65–74 is about $200,000. That makes Orman's ideal "cushion" out of reach for many typical Americans. The upside of Orman's advice is clear: a five-year just-in-case fund provides a powerful buffer against market volatility, giving retirees the peace of mind that comes with not having to sell stocks in a slump. It's a form of self-insurance that could save thousands in losses during bear markets and could help retirees with sleeping better at night. But the downsides are just as real. Building up three-to-five years' worth of cash funds, which likely means saving hundreds of thousands of dollars, requires one to have a level of wealth that many Americans just don't have. Plus, keeping so much cash on the sidelines comes with a hefty opportunity cost, since that money could be working harder in stocks or other investments with a higher yield. Read more: You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Here's how 2 minutes can protect your wallet right now Since Orman's ideal just-in-case fund seems to be out of reach for many Americans, it's key to consider a more balanced, attainable approach to saving for retirement. First, try to figure out how much cash savings you want on hand — maybe one-to-two years' worth of living expenses — as well as how much money you'll need to save for retirement. Keep in mind that for many retirees, you don't need to replace 100% of your pre-retirement income because once you stop working, some expenses disappear along with your commute. You no longer need to put money away for retirement because that's already taken care of. And the daily costs tied to working — like gas, public transit, office attire and going out for lunch — often vanish when you call it a career. Furthermore, if you've paid off your mortgage by the time you retire, that's another major bill off your plate. You can use the federal government's retirement planner to help with crunching the numbers. Building a smaller emergency fund — which is basically the same thing as a just-in-case fund — in high-yield savings accounts or short-term bond funds can offer liquidity without locking up a large chunk of your nest egg. Another popular approach is the 'retirement bucket strategy'. This is where you divide your savings into short-, mid-, and long-term buckets based on when you'll need the money. This method lets you tap into safer investments early in retirement while giving riskier assets time to grow before you need them. Orman's five-year just-in-case fund may be the gold standard for retirement security, but for many Americans it's more of a dream than a realistic plan. But her underlying message is that retirees shouldn't leave their retirement fate to the whims of the stock market. Whether it's a five-year just-in-case fund or a scaled-back alternative, building a cash cushion could be the smartest move you make for your future self. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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Yahoo
15-05-2025
- Business
- Yahoo
Here's how much money you should have saved for retirement based on your age
Retirement is the dream of every worker, but it can also be a source of dread and anxiety because the money needed to do so in comfort is out of reach for many Americans. According to a recent study by Northwestern Mutual, Americans felt they would need $1.26 million saved up in order to retire comfortably. But most people have nowhere near that, even as they approach retirement. The median net worth (meaning all of the assets and minus liabilities) of Americans between 65-74 years old is $410,000, according to the Federal Reserve Board's 2022 Survey of Consumer Finances, which is its most recently available data. And that's including everything they own — a home, savings accounts, and their retirement funds. For Americans under 35, the median net worth is just $39,040. More than half of Americans surveyed (51 percent) told Northwestern Mutual that they think they are somewhat or very likely to outlive their savings. 75 and older $334,700 65-74 $410,000 55-64 $364,270 45-54 $246,700 35-44 $135,300 Less than 35 $39,040 Which is unsurprising considering the median average annual salary in the US is just $59,384, according to the Social Security Administration. So how are you supposed to save for retirement without winning the lottery or hoping for an unexpected inheritance? According the advice of numerous financial institutions, it's by setting savings goals early, sticking to them, and making sure your money makes money through compound interest and investments, even if you're watching Donald Trump's tariffs send the markets plummeting. 'I think whats important now — what happens every time we have a volatile market dip — is that people read the headlines and they get scared. The younger generation might see that and decide not to invest, and that's what I fear,' Catherine Valega, a Certified Financial Planner, told The Independent. 'Look at this as an opportunity to buy stocks. Increase your contribution to your 401k or a Roth IRA. Don't let the markets scare you off, because I'll tell you what — the billionaires are all buying while everyone else is selling.' According to Fidelity Investments' retirement planning tips, a good rule of thumb for Americans looking to retire comfortably is to save 10 times your income if you're hoping to retire by age 67. That includes money in any retirement accounts or investments, CNBC reports. Breaking that down further by decade, Fidelity recommends that by age 30, Americans should have the equivalent of your annual salary saved up. If you're making $55,000, aim to have $55,000 saved. By the time a worker hits 40, they should, according to the investment company, have three times their income saved. By 50, that number should be six times their income, and by 60 it should be approximately eight times their income. That breakdown tends to be the standard shared by many financial experts with some minor disparities. Ally Bank's breakdown for retirement saving is similar to what's presented by Fidelity; at 30, have the equivalent of your annual income in the bank, by 40 have three times your income saved, at 50 aim for five times your income, and at 60 you're recommended to have seven times your income saved up for retirement. 'We want to save as much as we can, as soon as we can, and [be investing] as aggressively as we can,' Valega told The Independent. 'It's never too early or too late to start investing, quite honestly. If you missed the boat, lets get on it now.' Both Fidelity and Ally advise that it's important to keep in mind that those benchmarks are guidelines, and that an individual's retirement goals and personal circumstances must be factored in. And if you're not on track, remember that most others aren't either — 17 percent of Americans, regardless of age, have less than their annual income saved for retirement, according to Northwestern Mutual. how much Fidelity recommends you have saved if you want to retire at 67 Lifestyle is another important consideration. If a worker wants to spend their retirement traveling the world, eating good food, lavishing their loved ones with substantial inheritances, those goals need to be accounted for in advance. Where a person retires can be just as important. Some areas of the country are more expensive to live in than others. Some are more prone to disasters. Florida has long held a reputation for being the locale of choice for retirees, but repairing home and property damage caused by flooding and hurricanes can quickly eat into one's retirement savings if they don't plan for those potential costs. 'I'm in New England, and we used to advise people to retire with $2 million to have a comfortable retirement,' Valega said, who works with fairly wealthy clients. 'Now I want my clients to have $3 and $4 million saved in their retirement accounts to maintain the type of life they're accustomed to. So it depends a lot on where you live, and where you want to live.' White $284,310 Hispanic $62,120 Black $44,100 Other $132,200 Climate, activities, and proximity to loved ones all factor into those decisions, and thus must factor in to how one plans for their retirement. If a person has loved ones in several cities, they may want to plan to save up enough money to cover transportation for visits, or enough to afford a home or an apartment with a guest room. In order to actually manage to save up all the money needed to retire in relative comfort, financial experts suggested using a 50/30/20 budget frame work. According to the 50/30/20 framework, people should, after taxes, take 20 percent of their income and put it toward savings and debt repayment, and 50 percent should go to needs, while 30 percent should go to wants. The money set aside for savings ideally should be placed into high yield savings accounts, retirement accounts and investments into the stock market. Taking advantage of compound interest — that is, interest that builds on interest earned — is a top recommendation from virtually all of the major retirement planning experts. amount Americans believe they need to retire comfortably 'Given that we have more uncertainty than ever, I think it's so important to get money working for you in stocks and assets like real estate. You do want to be smart — if it comes down to someone enjoying a luxury like a trip or investing a few hundred bucks, I'd probably tell you to go with the investment,' Valega said. A good place to start, according to Fidelity, is investing in a standard index fund that tracks the S&P 500, as its more diversified than buying individual stocks like a day trader might. Most major brokers have S&P 500 fund or ETF like Vanguard. Perhaps the most important tip that financial experts have recommended has less to do with the technical side of budgeting and investing and more to do with perspective. All of this advice — saving more than a million dollars, hitting decade benchmarks, navigating the stock market — can seem daunting, but setting short term goals can help alleviate some of that stress, since the worst thing you can do is nothing at all.
Yahoo
06-05-2025
- Business
- Yahoo
Are You 'Upper Class'? Here's The Net Worth You Need In Your 50s
"Upper class" is one of those terms that everyone seems to aspire to, but there's no clear, one-size-fits-all definition. While it often gets thrown around in conversations about wealth and success, it usually comes down to how you compare with others your age. By most measures, "upper class" typically refers to households in the top 20%—whether by income or net worth. For income, Pew Research sets the upper class income threshold at $169,800 for a three-person household in 2025. But income is just one piece of the puzzle. Your net worth—what you own minus what you owe—often tells a much fuller story. Don't Miss: Net Worth Needed To Be Upper Class in Your 50s According to the Federal Reserve's 2022 Survey of Consumer Finances, here's how net worth breaks down for people in their 50s aiming for the top 20%: Ages 45 to 54: You'd need a net worth of at least $1.03 million to be in the top 20%. Ages 55 to 64: That number rises to about $1.47 million. Since the Federal Reserve groups ages by decades, someone around 50 would likely fall somewhere between these figures—closer to the middle, depending on whether you're early or late in the decade. And as you age, the bar naturally rises because assets like home equity and investments tend to grow over time. Trending: Are you rich? Here's what Americans think you need to be considered wealthy. What To Do If You're Playing Catch-Up in Your 50s If your net worth isn't where you'd like it to be, the good news is that there are still plenty of ways to boost your financial standing in your 50s:
