Are You In The Top 3% Of Retirees? Here’s The Shockingly Low Amount You Need Saved To Rank Among The Richest

By Investor Empires On Dec 11, 2024

Are you among the top 3% of retirees? Here’s the shockingly low amount you need to save to rank among the richest people

When it comes to retirement savings, we all hear about the elusive “top 3%.” But how long does it take to get there? Turns out, the number might surprise you.

According to data from the Federal Reserve and the Employee Benefit Research Institute, only 3.2% of retirees have saved more than $1 million. That’s not chump change, but it’s also not $5 million to $10 million as financial experts say. Like Suze Orman – He insisted that you should live comfortably. If you’re dreaming of $3 million or more, you’re officially aiming for a financial VIP club that represents less than 1% of retirees.

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Numbers speak volumes

For context, the average American household’s net worth (including homeownership, investments, and other assets) About $1.06 million. But here’s the surprise: median net worth – the point at which half of families fall below that value – has become much lower. translation? Most people don’t even reach millionaire status. And for those who do, most of them don’t feel like it. In fact, a Northwestern Mutual study found that only a third of millionaires classify themselves as “wealthy.”

Now, if you’re looking at $4 million or more, you’re stepping into really fresh air. Less than 0.1% of retirees hit the $5 million range, so $4 million likely represents a smaller segment.

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Why are so few people making them?

Reaching these numbers isn’t just about luck or earning a six-figure salary. It requires discipline, strategy and patience.

Here’s what the financial elite do differently:

They start early: The magic of compound interest isn’t just a cliché; It’s a game changer.
It’s consistent: Regular contributions, even when the market declines, add up over time.
They diversify: A balanced portfolio can protect against recessions and benefit from growth.
They live below their means: luxury cars and oversized homes may look good now, but they eat away at future wealth.
They avoid debt: interest payments are the enemy of savings.

TRENDING: Can you guess how many retirees with a $5,000,000 nest egg? The percentage may shock you.

Is a million dollars enough?

This is where it gets difficult. While $1 million puts you in the upper echelon of retirees, the amount you need depends on your lifestyle, location, and goals. Someone living in an expensive city like New York may find that a million dollars doesn’t stretch as far as it would in rural Montana.