Here’s the Minimum Net Worth Considered To Be Upper Class at 68
Written by
Sarah Li Cain
Edited by
Zuri Anderson
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By the time you reach 68 years old, you’re probably well on your way to or are already retired. Your income still matters, but if you’re already drawing down from your retirement accounts, your net worth technically matters more.
That’s because the wealth you’ve accumulated will help to support your lifestyle like fund a high level of spending, be prepared for the unexpected and maintain financial flexibility in your later years.
Here’s what the numbers look like, using benchmarks from sources like Fidelity, the U.S. Census and the Pew Research Center.
What Income Signals ‘Upper Class’ in Retirement?
Income benchmarks are still useful, even if some 68-year-olds aren’t earning a traditional paycheck from a job. Plus it’ll help to look at net worth benchmarks, since many are based on what someone “should” have saved based on what they’ve earned.
There isn’t really an official definition of someone who is considered “upper class,” but the Pew Research Center does have one that may be close enough. It defines “upper-income” households as earning more than three times the U.S. national median income.
According to the U.S. Census Bureau, the most current median household income is $83,730, so that means an “upper-class” income is most likely someone earning at least $251,190 annually.
At this age, income could mean combined sources from a job, and withdrawals from a pension, Social Security and investment account.
Using Income To Gauge a Net Worth Benchmark
At 68, the question is more about the amount of wealth you’ve already accumulated in order to generate an income that will support you at this stage in life. To help, you can use benchmarks like the one Fidelity offers.
According to the financial institution, you should have saved about 10 times your income to support a comfortable retirement, or around $2.5 million.
While it’s not an exact science, it can at least help us to see the minimum amount someone needs to have in assets in order to reach what can be considered upper class.
Does That Line Up With Real Net Worth Data?
To see if that lines up with what Americans this age really have, the Federal Reserve’s Survey of Consumer Finances can be a useful tool. The data shows that households with people between the ages of 65 and 74 have an average net worth of around $1.79 million or a median net worth of $409,900.
The average net worth may not be as accurate as larger net worth amounts can skew this number. For the “average” American, the median number is probably more accurate, as it shows a more typical level of wealth.
If Your Net Worth Is Lower Than This Benchmark
There’s nothing wrong with having less than several million dollars in the bank, because that may not be the amount you need to live well. One strategy is to start by looking at what you may have in Social Security benefits. If feasible, you could consider delaying receiving your benefits until age 70, when you can maximize the amount you’ll receive.
You can also take a careful look at your expenses now and see how you can make adjustments. Perhaps downsize, relocate or find ways to create an additional income source could work. Who knows, maybe after looking at your spending and other financial needs, you may not need as much as you think.
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