Here’s the Minimum Net Worth Considered To Be Upper Middle Class at 52

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When it comes to what’s considered the finances of the upper middle class in your 50s, it’s more about financial metrics like net worth, especially as you shift to thinking about retirement.

What exactly does the net worth upper middle class look like at 52 years old?

Let’s take a look using some benchmarks from sources like the Federal Reserve, Pew Research and Fidelity. Plus, what to do if your numbers aren’t where you’d like them to be.

Using Income as the Initial Benchmark

Income is widely used to define who is middle class. Using research from the Pew Research Center, households that earn over double the median income in the U.S. are seen as upper income, or defined by many as upper middle class. 

Looking at the latest median income data will help to translate that definition into a dollar figure. The U.S. Census Bureau says the median household income in the U.S. is $83,730. 

To translate that into a dollar figure, we need the latest median income data. According to the latest data from the U.S. Census Bureau, the median U.S. household income is $83,730. From here, to be considered upper middle class means that your household earns around $167,460 per year. 

Of course, this doesn’t necessarily adjust for other factors like household size and what you can earn in high or lower cost areas. But it does offer a decent starting point. 

What About Net Worth?

When it comes to financial security, your income alone doesn’t paint the whole picture. You can use your assets as part of your net worth as another benchmark. Many experts turn to age-based metrics for this, and one of the most widely cited ones comes from Fidelity. 

The financial institution’s guideline suggests saving six times your income by age 50, and about eight times by age 60 years old. Since 52 years old is between these two decades, let’s say you should save around 6.4 times your salary

Using the income example from above, your net worth that you’ll need to have to be considered upper middle class is around $1,071,744. 

Fidelity’s benchmark is focused on savings for retirement, so not your total net worth per se. You’ll want to take into account your other assets and liabilities, like ongoing debts and cash. Still, having a large chunk in retirement savings is most likely what help built up net worth for upper-middle-class Americans.

Is Your Net Worth Not Where You Want It To Be?

If you’re looking at the seven-figure net worth and feel overwhelmed, don’t feel like you’re behind. That’s merely a benchmark. Instead, focus on the actions you can take to increase your wealth.

For instance, prioritize contributing more if you can. Most types of retirement accounts like IRAs and 401(k)s allow catch-up contributions after 50 years old. You can also work on paying down debt so you can use the funds you would have used towards loans for savings. 

Ultimately, the amount or net worth to aim for doesn’t have to be the same as someone in the upper-middle-class threshold. Rather, look at your individual situation and work towards financial goals that work for your needs.

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