How does your retirement savings compare to the average “upper class” Nest Egg? Here’s what the top 20% saved

Are you on track for a comfortable retirement or falling behind? The numbers might surprise you.

According to Federal Reserve data analyzed by The Motley Fool, the top 10 percent of Americans — those in the 90th to 100th percentiles of net worth — have a median retirement savings of $900,000. It’s a pretty solid pillow. Meanwhile, those in the 75th to 89.9th percentiles come away with an average savings of $269,000.

Don’t miss:

But what exactly qualifies as “upper class?” Although there is no set definition, being in the top 20% by income often places you in that category. If you make around $145,000 or more annually, you may be in that bracket, depending on where you live.

When you look at the numbers, it’s easy to feel discouraged if your retirement savings aren’t quite there yet, but remember that these are average numbers. That means half of the people in these groups saved more and half saved less. What matters is that you are constantly saving and investing in your future.

Trending: Founder of Personal Capital and former CEO of PayPal reinvent traditional banking with this new high-yield account – start saving better today.

Interestingly, the wealthiest Americans aren’t just saving more, they’re seeing their retirement savings grow much faster. Since 1989, the top 10% have seen their retirement savings grow by 713.24%. This is the power of compound interest in action.

For the rest of the country, the average retirement savings for all households is about $87,000. The median is much lower if you’re under 35, at $18,800. So if you’re doing better than these numbers, you’re already ahead of the game.

See also: Charlie Munger said if you want to be rich, “find a way to get your hands on $100,000” – that’s what he meant.

One of the major reasons why the upper class continues to grow its savings is its investments. The top 10% of households own nearly 87% of stocks, showing how critical investment is to long-term growth.

Want to boost your retirement savings? Here are some strategies:

Save regularly: Set aside a portion of each paycheck specifically for retirement.

Maximize Your 401(k): Use any employer matching program.

Trends: Number of “401(k)” millionaires up 43% over last year – Here are three ways to join the club.

Open an IRA: This offers more tax benefits and investment flexibility.

The story continues

Diversify your portfolio: Spread your investments across different types of assets.

Increase your savings rate: As your income increases, aim to increase your savings rate.

Remember, retirement planning is a long-term process. The earlier you start saving and investing, even small amounts, the more time compound interest has to work in your favor.

Retirement goals also vary based on lifestyle, location and personal preferences. For example, someone in northwest Arkansas might need less to live comfortably than someone in Washington DC or California.

Ultimately, the focus should be on your trip and your financial goals. With consistent effort and smart financial choices, you can work toward a comfortable retirement, no matter where you start.

Read on:

Next: Transform your trading with Benzinga Edge’s unique market trading insights and tools. Click now to access unique information that can put you ahead in today’s competitive market.

Get the latest stock analysis from Benzinga?

This article How does your retirement savings compare to the average “Upper Class” Nest Egg? Here’s What the Top 20% Saved originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.