What is the Average ‘Upper Class’ Retirement Nest Egg? Here’s A Look At What The Richest 20% Have Been Hiding Away

What is the Average ‘Upper Class’ Retirement Nest Egg? Here’s A Look At What The Richest 20% Have Been Hiding Away

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What is the Average 'Upper Class' Retirement Nest Egg? Here's A Look At What The Richest 20% Have Been Hiding Away
What is the Average ‘Upper Class’ Retirement Nest Egg? Here’s A Look At What The Richest 20% Have Been Hiding Away

You’re scrolling through social media and a friend is sharing their latest Mediterranean cruise. It’s hard not to wonder – are they living the dream or ignoring the whole “savings savings” thing?

If they are part of the upper class, there is a good chance of getting money to pay for their vacation and their future. But how much did they save for retirement? And where do you stand?

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What is the “Upper Class?”

Before analyzing the numbers, it is important to understand what “high class” really means.

According to Pew Research, the median income for a three-income family was $256,920 in 2022. However, income is only part of the equation. Wealth – defined as the value of money – is the biggest factor, especially when it comes to saving for retirement.

A New York Times survey shows that the top 20 percent of households have a 3 to 1 financial ratio. A family earning $256,920 has a net worth of $776,000.

Now, let’s compare that with data from the Federal Reserve. According to their latest Survey of Consumer Finances:

  • The top 10 percent of households have a median net worth of $2.7 million.

  • The next bucket (11th – 25th percentile) holds a median net worth of just over $790,000.

So, whether you’re using income or wealth as your metric, the upper class is ahead of the national average.

Trending: Many are using this retirement money calculator to check if they are moving – Here is an explanation of the why behind this formula.

The Average Retirement Savings for the Upper Class

When it comes to saving for retirement, the elite do not disappoint. According to data from The Motley Fool:

  • The top 10 percent of earners have retirement savings of about $900,000.

  • Those in the next percentile (75th – 89.9th percentile) have a median income of $269,000.

Since the upper class usually includes the top 20 percent, a reasonable estimate of their median retirement income is between $400,000 and $500,000. While exact numbers are not available for the full group, their savings are above national representatives:

  • Median retirement income for all US families: $87,000.

  • Families under 35: only $18,800.

If your retirement income is in the six-figure range, you’re closer to the upper-class average than most people. If not, there’s still time to up your game.

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