How big is the retirement nest egg of the average “upper class”? See what the richest 20% have stashed away

While you’re scrolling through social media, another friend is showing off their latest Mediterranean cruise. I can’t help but wonder if they are living their dreams or if they are completely ignoring the idea of ​​”saving for retirement.”

If they are part of the upper class, they are more likely to have money to fund both their vacation and their future. But how much do they save for retirement? And where do you stand?

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What is considered “upper class”?

Before looking at the numbers, it’s important to understand what “upper class” actually means.

According to Pew Research, the median income for an upper-class household of three in 2022 was $256,920. However, income is only part of the equation. Wealth, defined as net worth, is an important factor, especially when it comes to saving for retirement.

According to a New York Times analysis, the wealth-to-income ratio for the top 20 percent of households is about 3 to 1. A household with an income of $256,920 has a net worth of approximately $770,760.

Now let’s compare that to data from the Federal Reserve. According to the latest consumer finance survey:

• The median net worth of the top 10% of households is $2.7 million.

• The next tier (11th to 25th percentile) has a median net worth of just over $790,000.

This means that the upper class is well ahead of the national average, whether based on income or assets.

Trend: Many people are using this retirement income calculator to see if they’re on track — Let’s break down what’s behind this formula.

Average retirement savings for the upper class

When it comes to saving for retirement, the upper class lives up to its expectations. According to data from The Motley Fool:

• The median retirement savings balance for the top 10% of earners is $900,000.

• People in the next tier (75th to 89.9th percentile) have a median balance of $269,000.

The upper class typically includes the top 20%, so a reasonable median estimate of their retirement savings is between $400,000 and $500,000. Although exact numbers for the group as a whole are not available, their savings are well above the national median.

• Median retirement savings for all U.S. households: $87,000.

• Households under 35: Just $18,800.

If you have six-figure retirement savings, you’re closer to the upper-class average than most people. If not, there’s still time to step up your game.

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