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

[nmmi]

Last edited Thu Dec 12, 2024, 03:05 AM - Edit history (1)

Ivy Grace, Benzinga, 12/11/24
https://finance.yahoo.com/news/top-3-retirees-heres-shockingly-203017202.html

. . . According to data from the Federal Reserve and the Employee Benefit Research Institute, just 3.2% of retirees have saved over $1 million. That's not chump change, but it's also not the $5-$10 million range some financial gurus – like Suze Orman – insist you must live comfortably.

If you're dreaming of $3 million or more, though, you're officially aiming for a financial VIP club that represents less than 1% of retirees. ...

Less than 0.1% of retirees hit the $5 million+ range

For context, the average American household's net worth (including home equity, investments and other assets) is about $1.06 million. But here's the kicker: The median net worth – the point where half of households fall below – is much lower. Translation? Most people ((96.8% -nmmi)) don't even hit millionaire status.

Emphasis added. I also broke into more paragaphs to make it more readable

[markodochartaigh]

1. Bill Gates walks into a bar.

On average everyone is a millionaire. But the median barely changed.
When the distribution is very uneven the median (half above, half below) can tell you a lot.

[Silent Type]

2. +1. Yeah, when I read some of the so-called experts, I feel like an retirement savings incel.

For example, theoretically $1000 a month for 20 years in Social Security is essentially like having $200,000 now. (using 3% as estimate). Unfortunately, you can’t blow that on a good time in a few weeks.

At least that’s what I tell myself when I look at my bank account.

[marybourg]

3. Most people live paycheck-to-paycheck; certainly not a lifestyle

that demands a $5 million retirement nest egg.

[stollen]

6. Suze is out of touch with reality

[Mike 03]

11. Exactly. The number of individuals/families who could not sustain a

$400 emergency and still meet their monthly financial obligations is, according to William Barber's book "White Poverty," 140 million, or 43% of the U.S.

I was looking the other day at a breakdown of what people 65 and older have in savings, broken down by age group, and it was nowhere near $5 million. IIRC, most had saved $500,000 or significantly less.

[Tactical Peek]

4. The median net worth is about $192,900 - half of households above, half below.

$192,900 median

Half of the households above, the other half below.

https://www.businessinsider.com/personal-finance/banking/average-american-net-worth

[Mike 03]

10. Yes, this is the statistic Katie Phang used about a week

ago. It's tricky. She was actually being fairer to use the median than the average, but both fail to capture the reality of most Americans. In Reverend Dr. William Barber's new book "White Poverty" he argues that the true number of Americans living in poverty is about 140 million, or about 43%, who he defines as people or families who could not afford to meet their monthly financial obligations were they to have a $400 unforeseen emergency.

I happen to think that is a brilliant and much more honest definition of poverty than the index we currently use (and have used for decades). Parenthetically, he argues the bulk of the 90 million Americans eligible to vote but who do not are in this group.

[stollen]

5. Suze is full of crap

I live comfortably at a much lower rate. Her commentary must have sparked a lot of panic.

[exboyfil]

7. I pushed the numbers when laid off at 60

and even sitting at the magic number of $1M isn't enough even with a small company pension and SS.We are not talking about any exceptional lifestyle either.

[cstanleytech]

8. I'm down in the sub sub sub basement as I am actually living under the poverty level as I've been disabled for decades.

So, if Trump fucks up that I'm fucked and in that case I've been considering just honestly ending it all as I honestly won't have anything to lose since my Mom's gone and with my brother dying suddenly in January there just isn't left for me.

[Skittles]

9. you're worth something to us

and we need all the help we can get