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 top tier is defined by solid financial planning, diverse income streams and a clear understanding of expanding wealth beyond Social Security checks.
If you’re curious about where you stand, here’s how to tell if you’re among the top retirees in 2024.
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Top 10% of Net Worth: What’s the Magic Number?
According to Federal Reserve Board survey data, to crack the top 10% of retirees, your net worth must reach about $1.9 million. For 65-74 year olds, that number jumps to about $2.63 million; For retirees 75 and older, it rises even higher to $2.86 million. This contrasts sharply with the average retiree, whose net worth is much lower — closer to $280,000 on average. If you cross that $2 million line, you’re looking at a very different retirement experience than average.
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Top Retiree Earnings – Without Salary
Here’s where things get interesting. Wealthy retirees aren’t sitting on a pile of cash. They have built multiple streams of income that flow well into retirement.
While Social Security can pay as much as $58,476 a year (if you’re lucky), top retirees are spending 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 a year, while the top 10% earn more. For those aged 65 to 69, the top 10% have an annual income of $200,000.
They get income from a combination of dividends, rental properties and strategic portfolios that allow them to live comfortably without draining their core 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 those in the top 10% might consist of 60% stocks, 35% bonds, and just 5% cash or cash-like investments. They are still looking for growth in retirement, rather than completely switching to traditional investments.
It also provides income while increasing their wealth. They may reduce risk as they age, but you won’t see these retirees parking all their money in low-yield savings accounts.
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How location plays into wealth perception
An often overlooked aspect of retirement is where you live. Retirees in some cities see their incomes stretched even further. While a retiree in a high-income area can make $90,000 a year, someone in a low-cost city can live on less. For the top 10% of retirees, where they choose to retire can often lead to flexibility and a high quality of life.
Retiring in the top 10% isn’t all about luck — it comes from smart planning, diverse sources of income, and a solid investment strategy. Understanding what it takes 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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