Here’s what being ‘super wealthy’ in retirement really looks like — plus how does your nest egg stack up against the top 1%, 5% and 10% of US retirees?

What it means to be 'super wealthy' in retirement

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How much is enough to be considered wealthy in the US? And if you’re not there yet, is it possible to still retire in the top percentile of Americans?

To be considered wealthy at age 65 or older, you need a household net worth of $3.2 million. That’s according to finance expert Geoffrey Schmidt, CPA, who used data from the 2019 Survey of Consumer Finances (SCF).

Schmidt argues that household net worth is more appropriate than individual net worth for this analysis because household status is usually set by age 65. He says you can worry less about day-to-day financial planning and start thinking about wealth planning at this level of wealth.

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Breaking down wealth demographics

According to the SCF report, it takes a net worth of $16.7 million or more for those over 65 to be considered super wealthy.

But that represents just the top one percent of American retirees. Here’s how all the other categories are broken down, including the associated net worth for each category:

• Super wealthy (99th percentile): $16.7 million
• Wealthy (95th percentile): $3.2 million
• Well off (90th percentile): $1.9 million
• Middle class (50th percentile): $281,000
• Poor (20th percentile): $10,000
• Insolvent (less than the 20th percentile): $0

The people in the top categories were most often people who “saved early, saved often and saved a lot,” says Schmidt.

How to build wealth

So, how can you catch up if your net worth isn’t on track to make you “super wealthy” — or, at the very least, as wealthy as you’d like to be at age 65?

According to the SCF report, it takes a net worth of $16.7 million or more for those over 65 to be considered “super wealthy. People at this level “engage in just about anything they want to engage in,” says Schmidt. These people travel extensively, pursue esoteric interests, and own expensive assets like wineries.

But if you’re not quite there yet, you can start by saving money.

Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)

With some extra cash on hand, you can start building up your emergency fund. You’ll want to save at least $1,000, but many financial advisers recommend that an emergency fund cover three to six months of your expenses. This can help weather financial bumps in the road without borrowing money or tapping into your retirement funds.

You’ll also want to pay off your non-mortgage debt and make sure you’re contributing what you can to maximize any employer matching of your 401(k) if that’s something you’re fortunate enough to have through work.

If not, you might consider opting to put your retirement savings into a shinier savings vehicle — a gold IRA. By opening a gold IRA with Rosland Capital, you benefit from the tax advantages of a traditional IRA alongside the inflation-hedging properties of gold, so your retirement fund is cushioned even amidst economic uncertainty.

It takes a significant net worth to be considered super wealthy. If you’re not there yet, you may be able to catch up — by saving a lot, saving early, paying down your debt, and optimizing your investments. You may not become “super wealthy,” but you’ll still build wealth.

If tackling your debt seems daunting, you might consider a debt consolidation plan that keeps you on track and with a lower interest rate through Credible — an online marketplace of vetted lenders.

After answering a few simple questions about your finances, Credible will provide you with a list of loan rates from top lenders within minutes. You can decide which works best for you and compare loans in one place.

Take care of your foundation

While building at least some wealth with the right mindset and discipline is possible, there’s no one-size-fits-all solution.

Taking control of your finances often starts by creating a budget, which can help you understand where your money is going and where you can cut back to increase your savings. There are several budgeting techniques, including incremental budgeting, zero-based budgeting, and cash stuffing. But it’s important to find one that works for you, so it’s easier to stick with it.

Empower — a unique digital suite of tools designed to help you manage your finances — can make sticking to your budget a bit easier. When you sign up for Empower, you have access to a free financial dashboard where you can keep track of all your accounts in one place. From managing your money to tracking your goals and navigating your budget, Empower offers a single place to examine the scope of your finances.

Cutting expenses can also help you save. For example, BestMoney could help you get a better rate on your auto insurance. BestMoney helps you compare the best insurance options in your area. When you fill in information about yourself and your policy, you’ll get a list of car insurance options near you to choose the most affordable rate.

Similarly, the online platform Official Home Insurance connects you with the lowest available home insurance rates near you. If you’re feeling overwhelmed by the prospect of building up your retirement fund, consider seeking out a financial advisor through Advisor.com

All you need to do is answer a few questions about your financial situation and goals, and they'll match you with a range of advisors. Then, you can reach out for a completely free consultation to ensure you find the right fit.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.