Many of us envision retiring with wealth, but what does it take to be truly affluent? And if you haven’t reached that level yet, is it still possible to retire among the wealthiest Americans?
According to finance expert Geoffrey Schmidt, CPA, to be considered wealthy at age 65 or older, your household net worth should be $3.2 million. Schmidt based this on data from the 2019 Survey of Consumer Finances (SCF), which he used to determine the household net worth needed for various wealth percentiles in the U.S.
Schmidt argues that household net worth is more relevant than individual net worth for this analysis, as household status is typically established by age 65. With this level of wealth, he suggests, you can shift your focus from day-to-day financial concerns to broader wealth planning.
Here’s a breakdown of wealth demographics according to the SCF report:
– Super wealthy (99th percentile): $16.7 million
– Wealthy (95th percentile): $3.2 million
– Well off (90th percentile): $1.9 million
– Middle class (50th percentile): $281,000
– Poor (20th percentile): $10,000
– Insolvent (less than the 20th percentile): $0
Schmidt notes that those in the top percentiles typically saved diligently and consistently. While some had high-earning careers or businesses, this wasn’t universal. For instance, Dave Ramsey’s National Study of Millionaires found that teaching was the most common profession among millionaires surveyed by Ramsey Solutions, despite teachers having modest average salaries of $61,690. This illustrates the power of steadfastness and dedication in building wealth.
