As retirement approaches, many people wonder where they stand financially. Are they poor, middle-class, or rich? The answer lies in their net worth, which can be a powerful indicator of their retirement prospects. Let's explore the different wealth categories and what they mean for retirees.



1. Lower level of retirement wealth:
Retirees in this category typically have only modest savings and rely heavily on Social Security benefits. According to the Federal Reserve, the median retirement account balance for Americans aged 65 to 74 is $200,000. This group may struggle to maintain their desired lifestyle in retirement.

2. Middle level of retirement wealth:
Retirees in this category may have enough money to cover their basic needs and have a modest amount left over for discretionary spending. They may be replacing around 60% to 70% of their pre-retirement income. With a retirement account balance closer to the national average of $609,000, they may be more comfortable but still need to manage their expenses carefully.

3. Upper level of retirement wealth:
Retirees in this category can replace around 70% to 80% of their pre-retirement income without financial stress. They may have a larger retirement account balance than the $609,000 national average. This group can enjoy a more comfortable retirement, with the ability to travel, pursue hobbies, and even help family members or charitable causes.

4. Elite level of retirement wealth:
Retirees in this category can maintain or even upgrade their pre-retirement lifestyles. They have more than the average $609,000 retirement account balance. This group can afford to indulge in luxury travel, high-end hobbies, and generous philanthropy.



The percentage of retirees relying on Social Security as their primary income source decreases as their wealth category increases. Retirees in the lower wealth category are most likely to rely on Social Security, while those in the elite wealth category are least likely to do so.

To determine where your nest egg lands you, consider your net worth, retirement account balance, and other sources of income. Use this information to plan your retirement lifestyle and make adjustments as needed. By understanding your wealth category, you can better prepare for a comfortable and enjoyable retirement.