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Retirement looks different for everyone, but what does it take to be in the top 10% of wealthy retirees?
It's not about flashy yachts or endless vacations. The top tier is defined by solid financial planning, diverse income streams and a clear understanding of stretching wealth beyond Social Security checks.
If you're curious about where you stand, here's how to tell if you're among the top retirees of 2024.
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The Top 10% Net Worth: What's the Magic Number?
To crack the top 10% of retirees, your net worth needs to hit around $1.9 million, according to Federal Reserve Board survey data. For those aged 65-74, that figure jumps to about $2.63 million; for retirees 75 and older, it climbs even higher to $2.86 million. This sharply contrasts the average retiree, whose net worth is much lower – closer to $280,000 on average. If you've crossed that $2 million line, you're likely looking at a very different retirement experience from the average.
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Top Retiree Earnings – Without a Salary
Here's where things get interesting. Wealthy retirees aren't just sitting on a pile of money. They've built multiple streams of income that continue to flow well into retirement.
While Social Security might pay a max of $58,476 annually (if you're lucky), top retirees are pulling in much more – without even breaking a sweat. Their income comes from investments, rental properties, pensions and sometimes businesses they've built or invested in.
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The average retiree earns around $75,000 annually, but the top 10% bring in significantly more. For those aged 65 to 69, the top 10% have an annual income of $200,000.
They earn income from a combination of dividends, rental properties and strategic portfolios, which allows them to live comfortably without draining their principal savings.
Portfolio Strategy: What Do Top Retirees Do Differently?
Wealthy retirees approach investing with a long-term mindset. It's not about playing it safe; it's about balance. A typical portfolio for someone in the top 10% might hold around 60% stocks, 35% bonds and just 5% cash or cash-like investments. They're still looking for growth even in retirement, rather than shifting entirely to conservative investments.
