In retirement, . This measure is often more insightful than income, as it reveals your financial stability and whether you’re poor, middle class or rich. Earning passive income doesn't need to be difficult.
In retirement, your economic class can be broadly categorized into four distinct groups, each defined by their net worth and financial capabilities, ranging from retirees with limited resources to the wealthy. According to , here are the net worth categories of the poor, middle class (and upper-middle class) and rich: Poor retirees are in the lower 20th percentile, and may have a net worth of around $10,000. This is often without property ownership, forcing many to rely mainly on Social Security or minimal pensions.
Making up the 50th percentile, with a median net worth of approximately $281,000, this group usually includes home equity, retirement savings and a 401(k) plan. These retirees possess a net worth between $201,800 and $608,900. They have diversified assets and enjoy a comfortable retirement cushion.
In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning. According to recent data from , the average net worth for those aged 65 to 74 was $1,794,600, which is more than four times the median net worth of $409,900.
This significant difference is because the super-wealthy skew the average much higher. Although $409,900 seems like a decently sized nest egg, it won�.